Central banks have always played a crucial role in the global financial system, holding reserves to back their currencies and provide stability. For decades, these reserves were dominated by foreign currencies, especially the US dollar, and government bonds like US Treasuries. But in recent years, something remarkable has happened: central banks have been buying gold at a pace not seen in generations, and by October 2025, their gold reserves have surged to unprecedented levels. The question is, did central banks really hoard more gold than ever before? The answer is a clear yes, and the numbers tell a fascinating story.
Let’s start with the big picture. In October 2025, the total value of global gold reserves held by central banks reached a staggering $4.64 trillion. This is a massive 52.9% increase since the end of 2024, showing just how quickly central banks have been adding to their gold stockpiles[1]. To put this in perspective, such a rapid rise in gold reserves is almost unheard of in modern financial history. Central banks have not just been buying a little more gold here and there—they have been on a buying spree, adding significant amounts month after month.
One of the most striking developments is that central banks now hold more gold than US Treasuries in their reserves[2]. This is a major shift. For most of the past several decades, US Treasuries were considered the safest and most liquid asset for central banks to hold. But now, gold has overtaken Treasuries in central bank portfolios. This change reflects a deep shift in how central banks view the global financial landscape. Gold, with its long history as a store of value and its lack of counterparty risk, is increasingly seen as a critical part of a diversified reserve portfolio.
The share of gold in global reserves has also climbed sharply. According to the International Monetary Fund (IMF), gold made up about 18% of global reserves in 2024, up significantly from levels seen in the mid-2010s[3]. This increase is not just a blip—it represents a structural reweighting, meaning central banks are deliberately choosing to hold more gold as part of their long-term strategy. This shift is happening across both advanced and emerging economies, with many countries looking to reduce their reliance on the US dollar and other fiat currencies.
Why are central banks buying so much gold? There are several reasons. First, gold is seen as a hedge against inflation and currency devaluation. With inflation remaining a concern in many parts of the world, central banks want assets that can hold their value over time. Second, geopolitical tensions and economic uncertainty have made gold more attractive. In times of crisis, gold has historically been a safe haven, and central banks want to be prepared for any eventuality. Third, the rise of digital currencies and changes in the global monetary system have prompted central banks to diversify their reserves away from traditional assets like US Treasuries.
The buying has been consistent. For example, in August 2025 alone, central banks added a net 15 tonnes of gold to their reserves, according to the World Gold Council[4]. This kind of steady accumulation shows that the trend is not just a one-off event but part of a broader strategy. Central banks are not just reacting to short-term market movements—they are making deliberate, long-term decisions to increase their gold holdings.
The price of gold has also reflected this surge in demand. In October 2025, gold surpassed $4,000 an ounce for the first time ever[2]. While higher prices can be driven by many factors, the strong and sustained demand from central banks has certainly played a role. When such large buyers enter the market, it can push prices higher, creating a feedback loop where higher prices make gold even more attractive as a reserve asset.
It’s important to note that not all central banks are buying gold at the same pace. Some, especially in emerging markets, have been particularly active, while others in advanced economies have been more cautious. But the overall trend is clear: central banks as a group are holding more gold than at any point in recent history, and they show no signs of slowing down.
What does this mean for the global economy? For one, it signals a reduced confidence in traditional reserve currencies and assets. By hoarding gold, central banks are effectively voting with their portfolios, expressing a preference for an asset that is no one else’s liability. This could have long-term implications for the US dollar’s role in the global financial system, as well as for the stability of international markets.
Another implication is that gold is becoming a more important part of the global monetary system. While it is unlikely that the world will return to a gold standard, the metal is regaining some of its historical importance as a cornerstone of central bank reserves. This could lead to greater volatility in gold prices, as central bank demand becomes a more significant factor in the market.
There are also questions about how sustainable this trend is. Gold mining production has not kept pace with central bank demand, which could lead to tighter supplies and even higher prices in the future. At the same time, if central banks were to reverse course and start selling gold, it could have a major impact on the market. But for now, there is no sign of that happening.
In the end, the evidence is clear: central banks really are hoarding more gold than ever before. The numbers are unprecedented, the trend is global, and the reasons are rooted in deep concerns about the future of the global financial system. Whether this marks a temporary shift or a more permanent change in how central banks manage their reserves remains to be seen, but for now, gold is back in a big way at the heart of the world’s monetary system.