Gold re-emerges as core reserve asset: Strategic implications for the Global South and Africa’s gold-producing economies

For the first time in modern history, gold has grown in importance as an alternative reserve asset alongside US Treasury bonds, reflecting structural shifts in the global international monetary landscape rather than short-lived market fluctuation.

 Over four consecutive years, central banks worldwide have ramped up gold acquisitions to an annual average of 1 100 tonnes, marking the fastest buying pace since the collapse of the gold standard in 1971.

Amid rising US sovereign debt and evolving global economic and geopolitical landscapes, sovereign nations are diversifying reserve allocation to enhance asset resilience, driving structural adjustments to the post-Bretton Woods reserve framework built around US dollar assets.

This story is for NewsDay subscribers.