The Return of Gold

I just wanted to quickly share an animated chart I made on the evolution of global international reserves from 1950 through 2024 (see below). The data is based on my personal calculations of reported and unreported purchases by central banks such as the Peoples’s Bank of China.

The chart shows that in the 1990s, for the first time in history, a fiat currency (the U.S. dollar) overtook gold as the leading currency in global international reserves. But after 2015, and especially 2022, gold’s share has been rising.

The video is also on X (here) for people that like to share it there.

Recently gold has surpassed the euro and is about to challenge the dollar, as we are at the end of a long term debt cycle and the global financial system will continue to deleverage (investors exchange credit assets for gold) in the coming five years.