Gold has overtaken US Treasuries as the world’s top reserve asset because it offers a solution to the challenges of a rogue America. But its renewed relevance also reflects how rapid technological diffusion and increasing dispersion of economic power are creating a more diversified international monetary system.
MONTREAL—One clear sign of de-dollarization and the shift toward a multipolar monetary order is gold’s renewed prominence in global financial markets. Investors increasingly view the metal as a strategic asset; central banks are buying record amounts of it to bolster resilience against financial and geopolitical risks, with last year marking the fourth-largest expansion of gold reserves on record. The Dutch central bank’s decision to move much of its gold reserves out of the United States, citing “geopolitical unrest,” is but the latest example of this trend.
