Gold Overtakes Euro as Global Reserve Asset
In 2024, gold overtook the euro to become the second-largest global reserve asset, accounting for 20% of official reserves—behind only the US dollar at 46%, according to the European Central Bank. This shift was driven by record central bank purchases, with over 1,000 tonnes acquired annually since 2022, and a surge in gold prices (up 30% last year and another 27% so far in 2025). Countries like China, India, Turkey, and Poland have led this buying spree. The move reflects rising geopolitical risk, de-dollarisation efforts, and concerns over US financial sanctions, positioning gold as a strategic hedge in the evolving global monetary system.
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The Quiet Retreat from US Treasuries — A Signal, Not Just a Strategy
China is no longer treating US Treasuries as untouchable. Since 2022, it has cut its official holdings by over 27%—not in retaliation, but as part of a quiet strategic pivot. The focus is shifting toward agency bonds, gold, and non-US assets to reduce exposure to American financial dominance. Japan hasn’t sold—but it has spoken. Its finance minister recently called the country’s $1.13 trillion in Treasuries a “card” in US trade negotiations, signaling a willingness to rethink even long-standing positions. The message from both is clear: global confidence in US debt is not vanishing—but it is no longer unconditional. As the US pursues more aggressive trade and economic policies, investors worldwide are starting to ask: what happens when the world’s most trusted asset becomes a geopolitical risk?
#USTreasuries, #GlobalFinance, #ChinaEconomy, #JapanEconomy, #Geopolitics, #USChinaRelations, #DeDollarisation, #SafeAssets, #GoldReserves, #ForeignReserves, #TradePolicy, #CapitalMarkets, #EconomicSecurity