Gold Surpasses US Treasuries in Global Reserve Value
The Federal Reserve recently downplayed a significant milestone in global finance: last year, the value of official gold reserves surpassed US Treasuries. This marks a strategic shift among central banks, signaling that gold is becoming a core asset.
According to Huitong Net, an ancient saying reveals the truth: if you need to work hard to explain something as unimportant, it proves its significance. The Fed's attempts to downplay this event only underscore its importance.
The crossover in numbers may be attributed to price factors, but central banks' actual moves can't be ignored, they are endorsing gold's strategic status with continued purchases. Global central banks bought about 1,000 tons of gold annually over the past four years, a pace twice the average of the prior decade.
Market expectations also support this trend: a record 45% of central banks surveyed expect to increase their gold reserves in the next 12 months, and as many as 89% believe that global central bank gold holdings will continue to rise. This fully demonstrates that central bank gold purchases are not short-term speculation, but long-term strategies.
The Fed's attempts to justify this event with technical arguments cannot obscure the core fact: even excluding gold held by the US itself, the value of sovereign gold reserves globally still reaches $4 trillion, slightly higher than the $3.9 trillion in US Treasuries held by foreign officials.