In late February 2022, days after Russia invaded Ukraine, the United States responded by freezing billions of dollars of assets owned by the Russian government.
Whether or not that action was justified is beyond the point. US government bonds had long been considered the safest asset on earth. But every central banker on the planet learned an important lesson that day– US Treasury bonds were only safe as long as their country stayed on America’s good side.
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Consequently, foreign governments and central banks began quietly moving a portion of their strategic financial reserves into assets that Washington could not freeze or sanction. And the most important of those assets was physical gold.
Within months, the collective buying of foreign central banks was running faster than at any point in modern history.
Compared to a previous baseline of about 650 metric tons per year in 2018 and 2019, central bank gold purchases jumped to over 1,000 tons starting in 2022.
It stayed there through 2023. It hit a record 1,100 tons in 2024. Even in 2025, when gold went parabolic to $4,500 an ounce and they could have paused or even taken profits, they were still net buyers of roughly 800 tons.
Holding Treasury bonds requires trusting that the US government will not freeze their assets, will not weaponize the dollar, and will not run deficits large enough to force the debasement of the dollar itself.
None of those three conditions holds anymore.
The United States ran a $2 trillion deficit last year— no recession, no economic crisis, no war, no bailouts. It was just business as usual. Congress won’t lift a finger to cut even the most blatant fraud and graft.
Source: SGT Report
