Gold Surpasses Treasuries as Global Reserves Milestone Reached

The gold market has reached an important milestone: global official gold reserves have surpassed foreign official holdings of U.S. Treasury securities, according to a recent note from the Federal Reserve.

This achievement was first recognized by Tavi Costa, Founder of Azuria Capital LLC, exactly one year ago. Since then, gold's success has been recognized by major financial institutions including the International Monetary Fund.

The Fed argues that gold's rise above Treasuries was driven largely by higher prices rather than a dramatic acceleration in central bank purchases. It also notes that global reserves include massive legacy holdings accumulated during the Bretton Woods era.

However, despite these qualifications, the milestone remains significant. Even after removing U.S. holdings, the Fed acknowledges that sovereign gold reserves were worth $4 trillion at the end of 2025, slightly more than the $3.9 trillion in Treasuries held by foreign official institutions.

Central banks continue to demonstrate through their actions that gold matters. According to the World Gold Council's 2026 Central Bank Gold Reserves Survey, central banks have purchased an average of roughly 1,000 tonnes annually during the past four years, double the average pace of the previous decade.