Gold Surpasses the Euro as the World’s Second-Largest Reserve Asset

Gold has now overtaken the euro as the world’s second-largest reserve asset — something that hasn’t happened since the 1960s. But what’s behind this global shift?

A Gold Rush Among the World’s Central Banks

The European Central Bank’s 2025 annual report leaves no room for doubt: gold has now surpassed the euro in global reserve holdings. Gold now makes up 20% of total official reserves, while the euro has dropped to 16%. The U.S. dollar still leads with a 46% share.

So, what’s driving this change? Two main factors:

1. Historically large gold purchases by central banks, especially from China, India, Turkey — and most recently, Iran.
2. A sharp rise in the gold price, which surged over 30% in 2024 and has continued to climb into 2025.

This means that many countries’ gold reserves are now at their highest levels since the Bretton Woods era of the 1960s.

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Gold – A Trusted Safe Haven Once Again

Since Russia’s invasion of Ukraine, central banks’ desire to reduce reliance on the dollar and euro has grown significantly. Developing countries in particular have increased their gold holdings as a safeguard against:

• Economic sanctions
• Political instability
• Currency risk tied to the dollar and euro.

Gold is considered an asset without counterparty risk. It doesn’t depend on a bank or government to maintain its value.

ECB Warns of the Euro’s Weakened Role

For the European Central Bank, the numbers are more than just statistics — they serve as a wake-up call. In the report’s foreword, ECB President Christine Lagarde warns that the eurozone’s monetary sovereignty could be at risk unless the euro adapts to the changing financial landscape.

Proposed measures include:

• Increased digitalization, including the development of a digital euro
• Stronger internal investment and capital mobility within the EU
• More diversified reserve strategies among governments.

What Does This Mean for You as an Investor?

The fact that gold has now overtaken the euro in central bank reserves confirms what many private investors have already sensed: gold is as relevant as ever — perhaps more so.

Here’s what we’re seeing right now:

• Central banks increasing their gold holdings for the third year in a row
• Gold prices reaching new all-time highs year after year
• Global demand for physical gold on the rise.

In short:

The asset trusted by the world’s financial powers — is one you may want to own, too.

Gold’s Role Is Strengthening in an Uncertain World

Even if central bank gold buying slows slightly in 2025, the trend is clear. The world is diversifying. Currency risk is growing. And gold is reclaiming its role as a stable asset in uncertain times.

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