A Major Shift in the Global Financial System
The world is witnessing one of the most significant financial transformations in decades. For the first time in nearly 30 years, central banks’ gold reserves have surpassed their holdings of U.S. Treasury bonds. This shift highlights the growing loss of confidence in the U.S. dollar and the rise of gold as a strategic safe haven that shields economies from American policy swings and geopolitical pressures.
Gold at the Forefront
Gold prices have recorded historic gains in 2025, surpassing $3,500 per ounce for the first time, with an increase of more than 34% since the beginning of the year. Global banks, led by J.P. Morgan, project that the yellow metal could reach $4,000 in the near term, supported by strong demand from both central banks and individual investors.
Recent data shows that global demand for gold reached 1,249 tons in Q2 2025, including 167 tons purchased by central banks alone. This confirms that gold has become the cornerstone of global hedging strategies.
Silver Stepping Into the Spotlight
Alongside gold, silver has also made a remarkable comeback, climbing above $40 per ounce for the first time in 14 years. With gains exceeding 40% since the start of the year, silver is expected to continue its upward trend, particularly given its expanding industrial use in semiconductors and solar energy, in addition to jewelry.
The clear supply-demand imbalance with global consumption reaching 1.16 billion ounces against production of just 820 million supports the continuation of this bullish trend.
Fading Confidence in the Dollar
The rising demand for gold and silver is not only about safe investments; it reflects a deep erosion of trust in the U.S. dollar. Washington’s reliance on the greenback as an economic weapon through sanctions has accelerated the shift, pushing many economies most notably China – to diversify their reserves away from U.S. assets.
A New Financial Era in the Making
Analysts argue that today’s developments are not just a price rally, but rather the beginning of a new financial era reminiscent of the Bretton Woods Agreement after World War II. With forecasts of gold surpassing $3,800 and silver reaching new highs, precious metals are redrawing the global economic map, raising a fundamental question: Are we witnessing the decline of the dollar’s dominance and the emergence of a multipolar financial system?
