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 of the United States. According to data released by the World Gold Council this month, the total global official gold reserves held overseas by 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). Calculated at the gold price on November 30, 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. bonds held by overseas governments of the United States was close to $3.88 trillion. Assuming the scale of gold reserves held by central banks remains unchanged by the end of the year, and calculated at year-end prices, the value of global official gold reserves held overseas by the U.S. would be $3.93 trillion, already surpassing the scale of U.S. bonds held by overseas official entities.