How Gold Overtook U.S. Treasurys as Number-One Reserve Asset

Gold has overtaken U.S. Treasurys as the world’s largest reserve asset, making up 27% of global central-bank reserves at the end of 2025 compared with 22% for U.S. government debt. The shift reflects strong central-bank buying, rising geopolitical uncertainty, and gold’s appeal as a store of value during periods of inflation and financial instability. Despite generating no income and requiring storage costs, gold’s sharp price gains and perceived safety have encouraged many countries to diversify reserves away from traditional dollar-based assets while maintaining confidence in the metal’s long-term role.