2025-12-31 15:21:56

Today, the global gold reserves have surpassed the scale of US Treasuries held by central banks worldwide. What does this shift mean? Gold seems to be reasserting its position as the cornerstone of the monetary system.

After the Cold War, US Treasuries were widely regarded as the most quality reserve assets—more attractive than gold because they generate yields. However, this situation is changing. As the US dollar and Western financial systems are increasingly used as political tools, more and more non-Western central banks are becoming alert. They are proactively reducing their dependence on US debt and diversifying their asset allocations.

The event of Russian assets being frozen became a turning point. It vividly exposed the fragility of US debt and Western financial infrastructure—reserves could also face the risk of confiscation. This lesson has deeply impacted central banks around the world.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

5 Likes

Reward
5
5
Repost
Share

Comment

0/400

SorryRugPulled

· 21h ago

Gold's return is truly appealing, and the US debt game is about to collapse --- That move by Russia directly taught the global central banks a lesson: freezing US debt is even possible. It's hard to believe just saying it out loud. --- In simple terms, even reserve assets are now political. Who would still dare to fully pledge US debt? --- Many countries are quietly stockpiling gold. What does this imply? --- This time, US dollar hegemony is really giving up some of its position. Allocating more to gold, the elderly's choice, has become the winning strategy. --- The old rules of the Cold War are completely over. In the era of decentralization, US debt is the biggest centralized risk.

View OriginalReply0

MidnightTrader

· 21h ago

Gold is making a comeback... To put it simply, it's because countries are afraid. With US bonds being used as political weapons too often, who dares to go all in? Real gold and silver are more reliable; at least no one can freeze your vault out of thin air. The US's approach has finally backfired on itself. Serves them right. Central banks are now quietly stockpiling gold, which is the smartest response. People are finally realizing that the credibility of fiat currency is actually quite fragile. Wait, does this mean the precious metals sector is about to heat up? The countdown to US debt default is on, just watch.

View OriginalReply0

TradFiRefugee

· 21h ago

Gold is really about to turn around, and this time it's different. The Russia incident has awakened everyone; who would still dare to bet all chips on US debt? Central banks have finally woken up; diversification is the way to go. This is the self-custody spirit that Web3 aims to promote. But to be fair, gold also has its issues. The true freedom asset still depends on what's on the blockchain. It seems that big money is re-evaluating the store of value logic, and it will eventually impact the crypto market.

View OriginalReply0

CommunityJanitor

· 21h ago

Gold has turned around. To put it simply, the play of US debt is no longer sustainable. Freezing assets has truly awakened central banks around the world. --- Honestly, Russia's move was a watershed moment. Who would still dare to keep all their assets in the dollar system? --- Diversification should have been done like this a long time ago. Putting eggs in one basket is just foolish. --- Gold is the insurance of fiat currency. When the international order is in chaos, it will never betray you. --- It's hilarious—US bonds can still generate returns? With inflation at this level, those returns are being eaten up completely. --- This shift indicates that unipolarity is loosening. It's nothing new. --- Central banks' moves are very clever. They've long seen through the dollar trap. --- Is the gold standard making a comeback? That’s a bit far-fetched, but increasing gold allocation is the trend. --- Really, at the moment Russia froze assets, central banks worldwide were calculating their accounts.

View OriginalReply0

ProofOfNothing