Discussion Paper

Why Gold Didn't Actually Overtake Treasury Securities as the World's "Favorite" Reserve Asset


Abstract: In 2025, world international reserves held in gold surpassed foreign official holdings of U.S. Treasury securities (figure 1), a fact drawing attention from media and policymakers (Nangle, 2025; European Central Bank, 2026; Storbeck and Hook, 2026, for example). Should this be interpreted as gold overtaking U.S. Treasury securities in its appeal as a reserve asset? I argue that the answer is no, as a comparison of world gold reserves and aggregate foreign official holdings of U.S. Treasury securities is problematic for a couple reasons.

https://doi.org/10.17016/2380-7172.4147

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Provider: Board of Governors of the Federal Reserve System (U.S.)

Part of Series: FEDS Notes

Publication Date: 2026-09-03

Number: 2026-09-03-2