A historic reversal is taking place silently but relentlessly in the global financial system: gold is returning to the throne of reserves, gradually displacing the US dollar, which marks the end of an era of monetary supremacy. According to data published by The Kobeissi Letter, the share of the US dollar in global foreign exchange reserves has fallen to around 40%, the lowest level in the last 20 years. This is a development that is causing great concern in Western decision-makers.
At the same time, gold is soaring to 28% of total central bank reserves, the highest level since the early 1990s, confirming that the world’s monetary authorities are gradually abandoning “paper” and returning to matter.
As a result, gold prices rallied +65% in 2025, the largest annual gain since 1979, while the US Dollar Index dec
Ten Years of Dedollarization
Over the past ten years, the dollar’s share of international reserves has fallen by 18 percentage points, a decline that can no longer be considered cyclical. Rather, it reflects a structural shift in central bank strategy as they seek to reduce their exposure to high-geopolitical risk currencies. In a world of increasing geopolitical instability, sanctions, reserve freezes, and financial flow fragmentation, gold is reemerging as the last completely neutral and tangible store of value.
It is no coincidence that gold now holds a larger share of global reserves than the euro, the Japanese yen, and the British pound combined—a seismic shift in the global monetary balance. According to the World Gold Council, the total value of central bank gold reserves is now approaching $4 trillion.
This exceeds the approximately $3.9 trillion held by foreign institutional investors in U.S. Treasury bonds for the first time since 1996. This is a clear indication that confidence in U.S. debt is eroding, while gold is regaining its role as a monetary anchor.
The dollar’s decline is no coincidence. The instrumentalization of the U.S. financial system as a means of foreign policy plays a decisive role. The freezing of government reserves, payment restrictions and secondary sanctions have transformed the dollar from a symbol of stability into a potential risk trap.
At the same time, the US’s exploding public debt and chronic budget deficits are reinforcing doubts about the long-term sustainability of the American economy, pushing more and more countries to seek a way out of the dollar system.
The End of Absolute Dominance
While the dollar remains the world’s primary settlement and reserve currency, regulators are now actively plotting scenarios for the gradual erosion of its dominance.
In this new environment, gold stands out as a credit-free asset, independent of government decisions, political pressures, or monetary experimentation. At the same time, the regionalization of financial flows and the development of alternative payment systems are accelerating the transition to a multipolar monetary world.
The era of the dollar’s absolute dominance appears to be coming to an end – and gold, silently but relentlessly, is returning to take its place at the center of global economic power.
