Why Central Banks Are Loading Up on Gold

In September 2025, Brazil’s central bank made a move most people missed, but one that insiders couldn’t ignore.

For the first time in four years, they bought gold. Fifteen tonnes of it.

Around the same time, China’s holdings of U.S. Treasuries fell to $730.7 billion. That’s their lowest level since 2008.

These weren’t random headlines. They were a message. The confidence that once surrounded the dollar is starting to erode.

What we’re seeing isn’t just a theory. It’s a deliberate, data-backed shift by central banks around the world.

They are quietly stepping back from U.S. financial dominance, one gold bar at a time.

2025: The Year of the Vault

Central banks are now buying gold with conviction. In just the first nine months of 2025, they added 634 tonnes to their reserves.

This isn’t market chatter. It’s a message being broadcast in capital letters.

And the pace isn’t new.

Since 2022, central banks have added more than 1,000 tonnes annually. But what’s new in 2025 is the determination behind these moves. Even with gold trading above $4,000 per ounce, the buying hasn’t stopped.

This isn’t about bargains. It’s about protection. The cost of trusting the dollar is becoming too high.

Emerging market nations are leading this shift. Brazil, Turkey, Kazakhstan, Uzbekistan, and even smaller economies like Guatemala are making strategic purchases.

The numbers tell the story. Gold now makes up 27 percent of global central bank reserves. That’s up from just 10 percent two decades ago.

In contrast, U.S. Treasuries now account for only 23 percent.

This is the first time since 1996 that gold has surpassed Treasuries in global reserve share. And that is not just a technical milestone. It is a clear vote of no confidence.

BRICS and the Escape from the Dollar

While central banks are moving gold into their vaults, the BRICS nations are laying the foundation for an entirely new system.

They aren’t rushing to build a single currency. They are doing something far more practical. They are cutting the dollar out of everyday trade.

India and Russia are using rupees for oil. China and Brazil are using the yuan for soybeans.

And behind the scenes, systems like BRICS Pay are being tested to connect national payment networks without ever touching the dollar.

The big picture is simple. These countries are no longer waiting for permission from Washington to build their financial futures.

By 2024, 90 percent of Russia’s trade with BRICS countries had already moved into non-dollar currencies. Saudi Arabia is exploring oil sales in yuan. And BRICS members are experimenting with digital currencies that allow them to settle trade directly.

This isn’t a theoretical shift. It’s already happening.

The U.S. Treasury’s Mixed Reality

On the surface, the U.S. still appears to be in strong shape. Foreign holdings of U.S. Treasuries reached a record $9.16 trillion in 2025. Japan and the UK continue to buy in large amounts.

But the structure of that demand is shifting.

China has pulled back. Its Treasury holdings are now at levels last seen during the global financial crisis.

Others, like Russia and various oil exporters, are also reducing exposure.

At the same time, yields are rising. The 10-year Treasury yield broke 5 percent earlier this year. That’s double the rate from just a few years ago.

This means one thing. Investors are demanding more to lend to the U.S. The perceived safety of U.S. bonds is being questioned.

Meanwhile, gold is climbing. Bonds are struggling. The old 60/40 portfolio, long considered a safe bet, no longer provides the same security.

The balance has shifted. And smart money is responding.

Who’s Buying and Who’s Walking Away

The composition of buyers matters. While traditional allies still support U.S. debt, strategic rivals are pulling back.

This changes the game. More of America’s borrowing now relies on domestic investors and friendly nations. The safety net is thinner.

At the same time, the dollar is becoming less central to global reserves.

According to a World Gold Council survey, 73 percent of central banks expect the dollar’s share to decline further. And 95 percent believe global gold reserves will continue to grow.

These aren’t vague predictions. There are firm expectations from the people who manage the planet’s wealth.

The Rise of the “Gold-Plus” Strategy

In the private sector, investors are starting to follow suit.

Bond funds are bleeding. Gold ETFs are seeing inflows. Allocations to real assets are climbing.

Many institutions are moving toward a diversified model that includes more gold and hard assets.

This shift is still in the early stages. But it is gaining traction. What was once a fringe idea is now being openly discussed by the largest asset managers in the world.

Wealth managers are asking a simple question. If central banks are buying gold with both hands, why shouldn’t we?

America’s Financial Superpower Is No Longer Absolute

The dollar isn’t disappearing. But its monopoly is weakening.

Financial hegemony gave the United States incredible power. It allowed America to borrow cheaply, influence global trade, and enforce sanctions with the push of a button.

But that leverage depends on the world’s willingness to keep using the dollar.

As more nations diversify their reserves, America’s margin for error shrinks.

The U.S. can still lead. But it can’t afford to ignore what’s happening.

The foundation of its financial power is being questioned. And if that trust slips too far, getting it back will not be easy.

What Comes Next Is a Rebalancing

The next financial era won’t be dominated by one currency. It will be defined by a more balanced system.

The dollar will remain important. But gold, the yuan, the euro, and even digital currencies will play larger roles.

That’s not a crisis. It’s a correction.

And for investors, it’s a moment to prepare, not panic.

What You Can Do Right Now

Follow the lead of the most sophisticated players in the world.

This isn’t about abandoning the dollar. It’s about positioning yourself to thrive no matter what comes next.

The institutions moving billions into gold aren’t guessing. They are hedging. They are building resilience.

You should do the same.

Stay Sharp,

Gideon Ashwood