Gold Ousts Euro as World’s 2nd Largest Reserve Asset—Central Banks Flip the Script

Move over, euros—gold just bulldozed its way into second place. Central banks are dumping fiat for the ultimate hard asset as monetary instability rattles the system.

The Shiny Reckoning

No fancy derivatives here. Gold's surge past the euro marks the biggest reserve shakeup since the dollar took pole position. Turns out 5,000 years of monetary history still trumps Brussels' printing press.

Pension funds scrambling to rebalance portfolios. SWIFT messages flying between vaults. Another quiet Tuesday for the barbarous relic that just won't quit.

Funny how 'outdated' assets outperform when central bankers forget what backing a currency actually means. But hey—at least the ECB can still buy more time with negative rates.

Gold Beats Euro

A new report by the European Central Bank has crowned gold as the 2nd breakout asset after the US dollar. Gold has now emerged as the second most held reserve asset in central banks as global economies encounter rising chaos spurred by the ongoing war crisis. The tumultuous war narratives have pushed the investors to consider gold as the best hedge asset, with world markets and economies continuing to bulk on gold to balance their profit margins.

The report details stark new information, adding how the US dollar is still leading the pack, making up 46% of the total world reserves. Gold at the moment constitutes 20% of global reserves, beating the euro, which currently stands at a modest 16%.

The stark war crisis, coupled with fierce TRUMP policies, has led the world to depend more on gold rather than any other asset. The yellow metal has always been considered the best-performing hedge asset during rising economic uncertainty, compelling banks to stock up on the yellow metal from 2022 all the way to 2025.

Investors are piling into gold funds like never before:

Gold funds have posted a record $85 BILLION in net inflows year-to-date.

This is more than DOUBLE the full-year record seen in 2020.

At this pace, net inflows will surpass $180 billion by the end of 2025.

Gold is now the… pic.twitter.com/Lno4Axk5iV

Central Banks’ Precious Metal Buying Spree: Interesting Stats

Per the latest ECB report, central banks around the world have been busy rigorously purchasing gold. For instance, from 2022 to 2024, central banks have added 1000 tonnes worth of gold every year, creating a hedge against violent economic fluctuations and uncertainties.

Global official AUX holdings are currently sitting at 36000 tonnes, with the US Federal Reserve alone holding nearly 8316 tonnes of the yellow metal.

World central banks expect gold reserves to continue rising:

95% of central banks anticipate global gold reserves to rise over the next year, according to a World Gold Council survey.

A record 43% of those surveyed plan to boost their own holdings during this time.… pic.twitter.com/sv2Kboyl6x