U.S. Gold Reserves Stagnate Amid Global Surge in Central Bank Gold Acquisitions

For more than five decades, the U.S. gold reserves have remained relatively stagnant, even as global central banks escalate their gold-buying activity at an unprecedented pace. This growing trend is reshaping the balance of power in the global gold market, with the United States seeing a notable decline in its share of global gold holdings.

Data shared by Crescat Capital on October 7 via X (formerly Twitter) underscores this dynamic. While the U.S. gold reserves have hardly changed since the 1970s, global gold holdings outside of the United States have been steadily rising since the abandonment of the gold standard in 1971. By February 2025, non-U.S. global gold reserves exceeded 30,000 tons, hitting their highest level in nearly five decades.

Erosion of U.S. Share in Global Gold Holdings

The stagnation in U.S. gold reserves has resulted in a steep decline in its share of global gold holdings. In 1950, the United States accounted for a commanding 53% of global gold reserves. However, as of 2025, that figure has plummeted to just 20%, marking the lowest share in nearly a century.

This trend is starkly juxtaposed with the aggressive gold acquisition strategies embraced by numerous foreign central banks, which increasingly regard gold as a critical strategic asset. Analysts point out that the current pace of central bank gold buying is the fastest seen since the 1970s.

China and Russia Lead the Charge

China and Russia have emerged as significant players in the global gold market, spearheading the wave of escalating acquisitions. Since late 2022, the People’s Bank of China has been consistently purchasing gold on a monthly basis. By 2025, China’s gold reserves surpassed 2,300 tons, setting a new historical record. This expansion aligns with Beijing’s broader efforts to advance yuan internationalization and lessen its dependency on U.S. dollar-based assets.

Similarly, Russia has ramped up its gold purchases in response to sanctions imposed by Western nations. By diversifying its foreign reserves and amplifying its focus on gold, Russia’s gold holdings have exceeded 2,000 tons. This strategic shift reflects Moscow’s efforts to shield its economy from external pressures and mitigate geopolitical vulnerabilities.

Broad Participation in the Gold Rush from Emerging Economies

The gold-buying surge is not limited to China and Russia. Emerging economies such as India, Turkey, and Qatar have also significantly increased their gold reserves in recent years. These nations are leveraging gold to strengthen their foreign reserve portfolios, defend their currencies against volatility, and safeguard assets amid global geopolitical tensions.

Gold’s re-emergence as a strategic priority highlights a broader shift in global market dynamics, with Washington losing some of its influence. Crescat Capital notes, “While the U.S. has largely abstained from the worldwide gold acquisition spree for decades, non-Western nations have accelerated their purchases, markedly expanding their gold reserves.”

Drivers Behind the Shift in Global Reserve Strategies

The intensified gold-buying activity reflects a fundamental change in global reserve management strategies. This shift is fueled by several interconnected factors, including an effort to reduce reliance on the U.S. dollar, mitigate geopolitical risks, and embrace gold’s enhanced role as a hedge against volatility and economic instability.

Emerging economies are increasingly pivoting toward gold as a reliable safeguard, especially in light of mounting concerns surrounding dollar hegemony and currency devaluation. Analysts predict that this trend of gold hoarding is likely to continue in the near term, driven by the need for diversification and stability in reserve portfolios.

Impact on Markets and Future Outlook

The growing emphasis on gold as a hedge is influencing broader asset markets. Wall Street anticipates that the rising demand for gold will push its price higher in the coming years. Moreover, assets like Bitcoin (BTC) are also expected to benefit under the broader framework of the “debasement trade,” as continued inflationary pressures and concerns over fiat currency devaluation drive investors toward risk-resistant alternatives.

As central banks and economies worldwide recalibrate their reserve strategies, the global gold market is undergoing a profound transformation. With non-Western nations taking the lead in reshaping this dynamic, the role of gold as a cornerstone of financial resilience is becoming increasingly prominent.