Foreign Media: Gold May Have Surpassed U.S. Bonds to Become the Largest Official Reserve Asset

Odaily News According to foreign media reports, driven by the surge in gold prices over the past year and active purchases by central banks, gold is expected to surpass U.S. Treasury bonds and become the largest reserve asset held by overseas governments. Data released by the World Gold Council this month shows that the total global official gold reserves held outside the U.S. exceed 900 million troy ounces (data for most countries is as of the end of November, while data for a few countries is as of the end of October). Based on the gold price on November 30th, this is equivalent to $3.82 trillion worth of gold. In comparison, as of October, the value of long-term and short-term U.S. Treasury bonds held by overseas governments was close to $3.88 trillion. Assuming the scale of central bank gold reserves remains unchanged by year-end, and calculated at the year-end price, the value of global official gold reserves held outside the U.S. would be $3.93 trillion, already surpassing the scale of U.S. bonds held by overseas official entities.