The Fed Discreetly Admits Gold Is Replacing the Dollar

The Federal Reserve Bank of New York has released a report discussing “declining dollar shares in official reserves and increasing roles for gold holdings by central banks,” stating this trend has been “inappropriately” generalized beyond “the actions of a small group of countries.”

The report reveals that as of the end of 2023, global central banks and finance ministries held nearly $12 trillion in foreign exchange reserves, with almost $7 trillion in U.S. dollar assets. According to World Gold Council data, “global central banks purchased over 1,100 tons of gold in 2022—more than double the amount from the previous year—and maintained a similar purchase level in 2023.”

Tech investor and former Coinbase chief technology officer Balaji Srinivasan noted on X that “the Fed now admits some countries are moving to gold,” highlighting that this “small group” represents 3 billion people, or 37.5% of the world’s population, moving away from the dollar towards gold.