Gold Overtakes US Treasury Securities in Global Reserves – The First Time in 30 Years

[Igor Pereira]

What we're witnessing is nothing less than a silent monetary revolution. The chart I bring today confirms what many suspected, but few data had to prove: the world is officially rejecting American debt in favor of the supreme real asset.

By Igor Pereira Financial Market Analyst

For the first time since 1996, foreign central banks hold a Bigger slice of Gold in their international reserves than US Treasury Securities (US Treasures).

Below, the autopsy of this historical inversion and why "little will understand" the magnitude of what is to come.

The graph is self-explanatory and devastating for the hegemony of the dollar.

• Inversion: Shares in Gold (yellow line) rose to 24% international reserves. At the same time, holdings in Treasures (green line) fell to 23%.

• The Historical Context: The last time gold was more important than US debt was in the mid-1990s. Since then, the petrodollar system and high interest rates have pushed central banks into securities. Now, this 30-year trend has broken.

It's not just about price; it's about security.

• Debt Risk: With US debt exceeding $36 Trillions, the Central Banks (China, Russia, India, etc.) are concerned about Uncle Sam's long-term solvency. They prefer an asset without counterparty risk.

• Geopolitical risks: The use of the dollar as a weapon of sanctions taught the world that reserves in bonds can be frozen. Physical gold in your own vault cannot be sanctioned.

If the world's largest money holders (Central Banks) are exchanging paper for metal, the high gold trend is structural, not speculative.

• Inelastic demand: They're not buying to trade. They're buying to guarantee national sovereignty. This creates an indestructible price floor.

• Dollar Depreciation: As demand for Treasures falls, income (Yield) tends to rise or the Fed has to print money to buy the debt (which devalues the dollar). Both scenarios are explosive for Gold.

"Few will understand this" because most still operate under the logic of the old system (where the US is the safe harbor). The Reality: Safe harbor's changed. Gold is the new Treasury Title.

My recommendation: Follow the Central Banks. If they are accumulating gold at record levels and reducing exposure to the US, their personal portfolio should reflect that same allocation. We're at the beginning of a precious metal supercycle.

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