Gold Surpasses Euro to Become the World’s Second-Largest Reserve Asset
In a landmark shift for global finance, gold has officially overtaken the euro as the second-most important reserve asset held by central banks—second only to the US dollar. This historic development, highlighted in a new European Central Bank (ECB) report, underscores gold’s enduring role as a pillar of stability in times of geopolitical and economic uncertainty.
Gold’s Comeback: Back to Bretton Woods Levels
Central banks have been snapping up gold at record levels for three consecutive years, accumulating over 1,000 tonnes annually—a staggering one-fifth of global yearly production. In 2024, total official gold reserves surged to 36,000 tonnes, nearly matching the peak seen in the mid-1960s during the Bretton Woods era.
Large buyers include global heavyweights like India, China, Turkey, and Poland, all ramping up their gold holdings in response to economic and political shifts.
A Price Surge with Staying Power
This central bank gold rush has been met with a 30% rise in gold prices in 2024 alone. In 2025, the rally continues with gold soaring to $3,500 per troy ounce, a new all-time high. As a result, gold now accounts for 20% of global reserves, outpacing the euro’s 16% share.
The ECB noted:
“This stockpile, together with high prices, made gold the second-largest global reserve asset at market prices in 2024 — after the US dollar.”
Why Gold? Safe Haven, No Strings Attached
While gold pays no interest and requires costly storage, its unmatched liquidity and immunity from political leverage make it a favored asset for central banks. Unlike fiat currencies, gold carries no counterparty risk and is sanction-proof—a crucial factor in today’s geopolitical climate.
Following the 2022 invasion of Ukraine, countries facing or fearing sanctions, particularly those aligned with China and Russia, accelerated their gold acquisitions as a form of financial insurance.
The De-Dollarisation Trend
Gold’s rise also reflects a broader trend: countries looking to diversify away from the US dollar. With growing concerns over US debt and weaponised finance, gold offers a neutral and historically trusted alternative. According to a survey of 57 central banks, many emerging markets cite sanctions risk and global monetary shifts as reasons for their gold purchases.
What’s Next?
With official gold demand surging and real yield correlations breaking down, the market is signalling that this isn’t a short-term trend—it’s a structural shift. The ECB even suggests that this demand may encourage further growth in global gold supply.
At Bullion Club, we’ve long understood gold’s role as the ultimate form of wealth protection. With central banks doubling down on bullion, individual investors would be wise to take note. Whether you’re securing your portfolio against volatility or investing for long-term value, gold remains an asset of enduring strength and trust.
