Gold Rush: Nations Diversify Away from US Assets Amid Geopolitical Uncertainty

The Netherlands and Norway have recently made moves to hedge against American influence in their financial dealings. The Netherlands moved 86 tonnes of gold from New York and Ottawa to London, citing increasing geopolitical unrest as a reason for strengthening crisis preparedness. DNB President Olaf Sleijpen stated that this relocation improves the tradability of their gold reserves.

Meanwhile, Norway's sovereign wealth fund is offloading around $80 billion in US Treasury bonds, reducing its exposure from 70% to 50%. The NBIM stressed the importance of broad diversification in a changing world. This move comes as France sold 129 tonnes of gold held at the New York Fed and replaced it with gold in Europe.

Germany has also moved 300 tonnes of gold in recent years, holding 50% of its reserves domestically. The Reserve Bank of India doubled its gold reserves stored at home to 77%. This shift away from American assets is not a protest, but rather an attempt to mitigate the risks associated with unravelling geopolitics.

The US Treasury has also seen its holdings decline as China and Japan reduce their exposure. China's holdings have fallen from $1.1 trillion pre-pandemic to $633.4 billion, while Japan cut its holdings from $1,239.3 billion to $1,116.7 billion.

Experts point out that this shift is not a de-dollarization but rather a de-risking or de-concentration of assets. Central banks have bought over 4,500 tonnes of gold in the past five years, including 289 tonnes in the second quarter of 2026 alone. Gold trades around $4,475 an ounce, and investors are waiting for an entry point.

John Maynard Keynes once described the gold standard as a barbarous relic, but tradition has become a tactic in times of turbulent geopolitics. Central banks are buying what yield cannot deliver: optionality. A Treasury security is a claim on an issuer, whereas gold is not.