Gold Surpasses Euro as Second-Largest Reserve
(MENAFN) Gold has now exceeded the euro in becoming the second-most significant reserve asset globally in terms of market worth, as stated by the European Central Bank (ECB).
The institution links this development to unprecedented levels of gold purchases by central banks and growing worldwide instability.
Throughout 2024, central banks boosted their gold reserves by over 1,000 tonnes — more than double the typical annual figure from the past ten years.
This brought the total official gold reserves to 36,000 tonnes, nearing the historic high last reached in 1965 during the Bretton Woods period, according to the ECB.
“This stockpile, together with high prices, made gold the second-largest global reserve asset at market prices in 2024 – after the US dollar,” the ECB declared on Wednesday in its yearly assessment of the euro’s global function.
By the end of 2024, gold made up 20 percent of the planet’s official reserves by market valuation, surpassing the euro’s 16 percent share.
The price of gold surged by close to 30 percent over the year, reaching unprecedented levels above USD3,500 per troy ounce, which greatly increased its presence in reserve holdings.
According to the ECB, “two-thirds of central banks invested in gold for purposes of diversification, while two-fifths did so as protection against geopolitical risk.”
The bulk of these purchases came from emerging nations, especially those less politically aligned with Western powers.
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