A shift we shouldn’t overlook

Gold now accounts for 20 % of central banks’ official foreign‑exchange reserves, while the euro’s share has dropped to 16 %. The U.S. dollar still holds first place with roughly 46 %, but this shift could signal a long‑term change in trust toward global currencies.

“In 2024, gold represented approximately 20 % of official global reserves, while the euro declined to 16 %.” (Source: ECB)

 

Composition of official global reserves

 

Why gold?

Gold’s growing dominance is no accident. Recent years’ events – from geopolitics and economic uncertainty to technical drivers – have created ideal conditions for gold to shine.

 

1. Certainty amid uncertainty

In times of sanctions, military conflicts and tense international relations, central banks—especially outside the West—turn to assets untethered to any one country or political agenda. Gold is the ideal choice: anonymous, independent and universally accepted.

“For many central banks, gold serves as insurance—protection against geopolitical risks and asset freezes,” (Source: ECB survey)

 

2. Lower risk, higher reliability

Unlike fiat currencies, whose value depends on confidence in a specific state or central bank, gold has no counterparty risk. It holds intrinsic value and, throughout history, has proven a reliable store of wealth.

 

3. Soaring price performance

In 2024 alone, gold’s price surged by over 30 %, and this positive trend continued into Q1 2025. That rise boosted the value of existing central‑bank reserves, further cementing gold’s portfolio position.

 

Facts that speak for themselves

• 36,000 tonnes of gold held in official reserves—the highest since the end of the Bretton Woods system
• 1,000+ tonnes of gold purchased by central banks in 2024—the third record‑breaking year in a row
• The euro fell below 17 % of global reserves for the first time
• 20 % of central banks’ official reserves are in gold—meaning one in five “reserve dollars” is effectively held in gold

“Central banks continued purchasing gold at a record pace—total volume for 2024 exceeded 1,000 tonnes,” confirms the trend and growing interest, according to the Financial Times.

 

World gold reserves

 

What does it mean for us?

This development sends a strong message to individual investors, financial strategists and nations alike: tangible, value‑based and trustworthy assets are once again in the lead. As fiat currencies face mounting challenges, gold stands out as a strategic pillar of financial security.

And as they say: those who prepare today, gain the advantage tomorrow.