Can gold overtake the dollar in global reserves?

Published by Mattias Söderström in category Articles on 29.10.2025
Gold price (XAU-SEK)
41226,40 SEK/oz
  
- 317,00 SEK
Silver price (XAG-SEK)
603,50 SEK/oz
  
- 8,64 SEK
Guldtackor som ligger på dollar sedlar.

Gold’s share of the world’s currency reserves has reached 30% – close to the dollar’s 40%. Are we entering a new era where gold once again becomes as important as the USD?

Gold’s role is growing rapidly

Deutsche Bank reports that gold’s share of global reserves has increased from around 24% to 30% in a short time. At the same time, the U.S. dollar has fallen from 43% to 40%. This means that the gap between gold and the USD as a reserve asset is shrinking quickly.

Historically, the dollar has held a dominant position as the world’s reserve currency. Gold now taking such a large share is seen as a sign that central banks view the metal as an increasingly important hedge against risks in the financial system.

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What would it take for gold to surpass the dollar?

Calculations show that if the gold price were to reach around USD 5,790 per ounce – given current holdings – its share would be comparable to the dollar’s at roughly 36%.

This would mark a historic shift: for the first time since the collapse of the Bretton Woods system in the 1970s, gold could stand side by side with the dollar as a central reserve.

3 reasons why central banks are buying more gold

  1. Diversification: More institutions want to reduce their dependence on the dollar.
  2. Inflation hedge: Gold retains its value over time.
  3. Geopolitics: National reserves are affected by sanctions and political risks – gold is independent of such systems.

What does this mean for you as an investor?

For private investors, central banks’ actions mean that gold is not only a safe haven, but also increasingly part of the global financial landscape.

  • Demand is rising: The more banks that buy, the greater the upward pressure on prices.
  • Physical gold gives you control: Unlike paper-based instruments, you own the metal itself.
  • A historic opportunity: If gold’s role continues to strengthen, we may be facing a new era where its value becomes even more central.

The gap between gold and the dollar in global reserves is narrowing – a development that could change how we view money and security in the economy. For you as an investor, this may be the right time to reflect on gold’s place in your portfolio.

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Gold price (XAU-SEK)
41226,40 SEK/oz
  
- 317,00 SEK
Silver price (XAG-SEK)
603,50 SEK/oz
  
- 8,64 SEK

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