Gold Did Not Overtake U.S. Treasuries as Top Reserve Asset, Fed Economist Weiss Says

Fed economist Colin Weiss argues that gold has not truly displaced U.S. Treasury securities as the leading reserve asset for central banks. Although the value of global gold reserves exceeded foreign holdings of U.S. Treasuries in 2025, this resulted mainly from private investor demand lifting gold prices rather than stepped-up central bank purchases. Most gold reserves belong to countries holding large legacy stocks from the Bretton Woods era, including the United States, which owns 22% of world gold but cannot count its own Treasuries as reserves.

Excluding U.S. gold, reserves hit $4 trillion by end-2025 versus $3.9 trillion in Treasuries, yet by June 2026 Treasuries regained the lead. The bulk of gold was acquired before 1971, unlike most Treasuries accumulated after 2000. The five largest gold holders—the U.S., Germany, Italy, France, and the IMF—account for 52% of world stocks and have not added meaningfully since the 1970s.

Countries actively choosing between gold and Treasuries represent only a small share of reserves. Foreign official Treasury holdings remained roughly $1 trillion ahead of gold reserves in June 2026, even allowing for possible unreported purchases.