A Pound of Gold: Global Finance Shifts and Crypto Implications

A pound of gold is no longer just a measure of weight or wealth—it now stands at the center of a historic shift in global finance. As of October 26, 2025, according to Barchart and the World Gold Council, foreign central banks collectively hold more gold than US Treasuries for the first time since the mid-1990s. This milestone signals a profound change in how institutions view safety, liquidity, and trust in the international monetary system. In this article, you'll learn why a pound of gold matters more than ever, what recent data reveals about central bank behavior, and how these trends could shape the future of both traditional and digital assets.

Central Banks and the New Era of Gold Reserves

The resurgence of interest in a pound of gold among central banks marks a turning point in global finance. Data from Barchart confirms that, as of October 2025, central banks have continued their record-breaking gold buying streak. The World Gold Council reported net purchases of 19 tonnes in August and 10 tonnes in July, putting 2025 on track for approximately 900 tonnes—double the long-term annual average. This is the fourth consecutive year that global gold purchases have exceeded twice the historical norm.

According to The Kobeissi Letter, central banks have been net buyers of gold for 16 straight years, the longest streak ever recorded. Before 2010, these institutions were net sellers for over two decades. In just the first half of 2025, 23 countries expanded their gold reserves, highlighting the growing demand for hard assets. This trend is not merely a reaction to inflation; macro researcher Sunil Reddy links the surge to the collapse of the Federal Reserve’s reverse-repo balances, emphasizing that capital now seeks what "can’t default"—hard money like a pound of gold.

Why Trust in Gold Is Rising—and What It Means for Fiat

The shift toward a pound of gold reflects deeper concerns about fiat currencies and government debt. Reports indicate that the US government now spends nearly 23 cents of every dollar of revenue on interest payments, eroding confidence in US Treasuries. Since the 1970s, major currencies such as the British pound and Swiss franc have lost between 70% and 90% of their value when measured against gold. This loss of purchasing power underscores why central banks are increasingly turning to gold as a store of value and as pristine collateral, not just an inflation hedge.

Recent market events further illustrate gold’s enduring appeal. While gold experienced a 5% drop in late October 2025—its steepest one-day decline since 2013—analysts attribute this to mechanical factors, such as a large ETF block trade, rather than fundamental selling. In fact, Chinese ETFs reportedly increased their gold exposure during the dip, reinforcing the asset’s role as a safe haven.

Digital Gold: The Next Chapter in Value Preservation?

As a pound of gold regains its status as the ultimate safe asset, digital alternatives are also gaining traction. Crypto investor Lark Davis noted that while gold fell 5% in a single week, Bitcoin rose 3% during the same period. If Bitcoin were to absorb even a small fraction of gold’s market capitalization, the price could surge dramatically—1% of gold’s market cap would equate to $134,000 per Bitcoin, and 3% to $188,000, according to Davis. This sentiment is echoed by other analysts who suggest that "digital gold" may be the next frontier for value preservation.

Despite gold’s recent volatility, the underlying trend is clear: global monetary authorities are moving decisively into hard assets. As the institutions that issue fiat currency increase their gold holdings, the question arises—should individuals also diversify into hard assets, including digital currencies? Platforms like Bitget offer secure and user-friendly solutions for exploring both traditional and digital asset markets, empowering users to make informed decisions in a rapidly changing financial landscape.

Key Takeaways and Practical Insights

• As of October 26, 2025, foreign central banks hold more gold than US Treasuries for the first time in nearly 30 years (Source: Barchart, World Gold Council).
• Central banks purchased a net 19 tonnes of gold in August 2025, with the year on track for 900 tonnes—double the long-term average.
• Major fiat currencies have lost up to 90% of their value against gold since the 1970s, driving renewed interest in hard assets.
• Bitcoin and other digital assets are increasingly viewed as potential "digital gold," offering alternative stores of value.
• Bitget provides a secure platform for trading and storing both gold-backed and digital assets, supporting users in navigating the evolving financial landscape.

Want to stay ahead in the world of finance? Explore more insights and trading opportunities with Bitget, and discover how both a pound of gold and digital assets can play a role in your portfolio. Stay informed, stay secure, and make the most of the new era in global value preservation.