A major shift is underway in the global financial system. For the first time in 30 years, gold has surpassed U.S. Treasuries as the largest foreign reserve asset held by central banks. Today, foreign central banks hold nearly $4 trillion worth of gold, compared to roughly $3.9 trillion in U.S. Treasury holdings.
This change did not happen overnight. Central banks move slowly and deliberately. When they make a shift of this size, it reflects long-term thinking about risk, stability, and preservation of value. When the world’s most powerful financial institutions quietly change course, it is often because they see risks coming that everyday Americans will feel later.
