Since 1996, for the first time—non-US central banks' gold reserve valuations have surpassed the scale of their holdings of US Treasuries. What does this turning point mean? Let's look at the data.

By the end of 2025, non-US official central banks' gold reserves will exceed 900 million troy ounces. Converted at the end-of-year gold price, this gold asset is worth approximately $3.93 trillion. During the same period, these central banks hold about $3.88 trillion in US Treasuries (both short-term and long-term). The result is clear—gold has overtaken US Treasuries.

Why has gold prices surged so fiercely? In 2025, international gold prices soared by 70%, jumping from $2,600 per ounce at the beginning of the year to $4,500 per ounce at year-end. Central banks have been quietly increasing their gold holdings in recent years, and this wave of price increase has instantly inflated their book values.

But there is a deeper logic behind this. After the Russia-Ukraine conflict in 2022, the US directly froze Russia's foreign exchange reserves, sounding an alarm for global central banks—over-reliance on dollar assets carries political risks. Countries have begun to realize that putting all eggs in the dollar basket is not very safe. Increasing gold holdings and reducing US Treasuries have become classic strategies for risk diversification.

On the other hand, US federal government debt has already surpassed $34 trillion, and the deficit continues to grow. Market doubts about the US's long-term debt repayment ability and the dollar's purchasing power are mounting. Against this backdrop, it is not surprising that central banks worldwide are adjusting their reserve structures to enhance the autonomy and risk resistance of their financial systems. The choices of global central banks are now very clear: gold is becoming the new darling of reserve assets in this new era.