Foreign media: Gold may have surpassed US debt to become the largest official reserve asset

Odaily Planet Daily reports that, according to foreign media, driven by the surge in gold prices over the past year and active purchases by central banks around the world, gold is expected to surpass U.S. Treasuries to become the largest reserve asset held by overseas governments of the United States. According to data released this month by the World Gold Council, the total global official gold reserves held by overseas U.S. entities exceed 900 million troy ounces (most countries’ data are as of November, with some as of October). Based on gold prices as of November 30, this amounts to approximately $3.82 trillion in gold. In comparison, as of October, the value of long-term and short-term U.S. Treasuries held by overseas governments was close to $3.88 trillion. Assuming the scale of central bank gold reserves remains unchanged by the end of the year, and using the end-of-year price, the total value of overseas official gold reserves would be $3.93 trillion, surpassing the scale of overseas official holdings of U.S. Treasuries.