In June 2025, the European Central Bank (ECB) reported that gold surpassed the euro to become the second-largest global reserve asset by market value, trailing only the US dollar. Gold accounted for about 20% of global official reserves at the end of 2024, overtaking the euro’s 16%. This shift was driven by a 30% surge in gold prices in 2024, reaching a record high of $3,500 per ounce in April 2025, and record central bank purchases, with over 1,000 tonnes acquired in 2024, led by countries like China, India, Turkey, and Poland.

The trend reflects growing geopolitical tensions, including the 2022 freezing of Russian reserves, US-China friction, and a push by BRICS nations to diversify away from dollar and euro reliance. Central banks cited diversification and protection against sanctions as key reasons for increasing gold holdings. Despite the euro’s stable share at around 20% when measured at constant exchange rates, gold’s price rally elevated its market value above the euro’s. The US dollar still dominates reserves at 46%, though its share is declining.

This is a big deal, and it’s a wake-up call for anyone who values economic stability, national sovereignty, and sound money. Let’s break down why this matters and what it means for you. Gold overtaking the euro signals a crisis of confidence in fiat currencies—those paper promises backed by nothing but trust in governments. Fiat currencies are backed by empty promises, and when those promises fail, confidence collapses. ‘Fiat’ is Latin for currency by force.

The euro, once hailed as Europe’s answer to the dollar, is losing ground because central banks are questioning its long-term stability. And who can blame them? The eurozone’s been grappling with sluggish growth, political fragmentation, and the fallout from years of loose monetary policy. Meanwhile, gold—tangible, timeless, immune to sanctions—has become the go-to for nations looking to protect their wealth.

Why EU’s Currency Is DONE

The Euro suffered a record collapse to its low in 2022. However, this fall isn’t done and the crash has worsened in 2025. The Euro could crash further which could escalate deindustrialization as well!

ECB’s Digital Euro set to launch in October

But this is by design because, the European Central Bank is set to unveil its Digital Euro in October, sparking widespread concerns about the erosion of our financial freedom. A major issue is the real-time monitoring of every single transaction, allowing banks to track each purchase made by individuals, thereby raising significant privacy concerns. The threat of payment blocking becomes increasingly real, with the government potentially freezing funds if they disagree with an individual’s actions. Furthermore, the introduction of automatic tax deductions is a looming possibility, where the ECB could directly deduct taxes from digital wallets. The implementation of cash withdrawal limits may also be on the horizon, restricting access to one’s own money. The Digital Euro will introduce programmable money, enabling the imposition of expiration dates on funds, which will disappear if not spent within a specified timeframe. Having failed to convince the public to adopt this system voluntarily, authorities now appear to be relying on fear tactics, potentially exploiting a new crisis to forcibly impose the Digital Euro on the population, effectively ushering in a financial Great Reset. This move would grant total control over individual purchases, tracking movements, and potentially even dictating dietary choices, essentially establishing a system of pervasive financial surveillance that monitors every aspect of one’s life. By accepting the Digital Euro, individuals would be paving the way for a future devoid of financial privacy, where every transaction is tracked and controlled. The ECB’s plan raises urgent questions about the future of financial freedom and the potential for governments to exert excessive control over citizens’ lives. Will the introduction of the Digital Euro mark the beginning of a new era of financial surveillance, and what implications will this have for individuals and society as a whole?

How Geopolitics has favoured Gold

Now, let’s talk geopolitics, because this is where the rubber meets the road. The 2022 freezing of Russia’s reserves by Western powers sent shockwaves through the global financial system. Countries like China and India took note and said, “We’re not going to be next.” They’re diversifying away from the dollar and euro, stockpiling gold to shield themselves from sanctions and currency wars. BRICS nations are even talking about a gold-backed alternative to the dollar. This isn’t just a financial shift; it’s a power shift.

From a conservative perspective, this is a vindication of what we’ve been saying for years: fiat currencies are vulnerable. The US dollar, still king at 46% of reserves, isn’t invincible either. Its share is shrinking, weighed down by America’s $33 trillion debt and reckless money printing. Gold’s rise is a reminder that sound money—backed by something real—matters. It’s why central banks are acting like preppers, stocking up on gold like it’s the financial apocalypse.  But this isn’t just about central banks. Everyday investors are jumping in, too. Gold ETFs and physical bullion sales are booming as people hedge against inflation and currency devaluation. And let’s be honest: with governments spending like there’s no tomorrow, who trusts paper money to hold its value? Gold’s surge is a vote for economic sanity in a world gone mad with debt and deficits.  But Like I said, Its by design because they want to introduce CBDC.

Gold overtaking the euro is sign that the global financial system is cracking.

So, why should you care? Because gold overtaking the euro is a warning shot. It’s a sign that the global financial system, built on trust in fiat currencies, is cracking. For investors, it’s time to ask: are you diversified? Do you have assets that can’t be printed or sanctioned away? For policymakers, it’s a call to get back to basics—cut spending, shore up currencies, and stop treating debt like a game. And for all others, it’s a reminder that in uncertain times, gold isn’t just shiny metal; it’s a hedge against chaos.