🏆 Gold Surpasses Euro as the World's Second-Largest Reserve Asset
According to the latest ECB report, gold officially overtook the euro by the end of 2024, accounting for 20% of global official reserves, compared to just 16% for the euro. The U.S. dollar remains dominant at 46%, but this marks a turning point for the global monetary system.
🔎 What’s driving this gold surge?
– Aggressive central bank buying: In 2024 alone, central banks purchased 1,045 tonnes of gold, continuing the trend of over 1,000 tonnes annually since 2022. Poland led with 90 tonnes, followed by Turkey, India, and China.
– Gold price surged nearly 62%, reaching a peak of $3,509.90/oz in April 2024, significantly boosting gold's market value in reserve portfolios.
– Geopolitical tensions, economic sanctions, and dedollarization have made gold the preferred “global vault” – a physical asset immune to Western financial controls.
💥 Impacts to watch:
1 - Gold prices could remain high, sustained by central bank demand, though a potential slowdown (especially in China) might trigger corrections.
2 - Euro could face depreciation pressure if central banks continue reallocating reserves into gold.
3 - A shift toward a multipolar reserve system is forming, with gold playing a more central role and challenging the dollar’s long-term supremacy.
4 - Stronger financial safety for gold-heavy nations: Countries like China and India may be better shielded during future crises thanks to gold’s liquidity and universal acceptance.
5 - Institutional and retail investors may follow suit, as central banks set the tone for gold’s role as a safe-haven asset amid global instability.
📊 A 2024 survey by the World Gold Council shows 29% of central banks plan to increase their gold reserves in the next 12 months (through April 2025) – reinforcing the trend toward a "golden era" in reserve strategy.
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