Gold reaches record high amid global uncertainty
Gold hits highs as central banks change into it amid global uncertainty and market volatility.
What is it worth: From Costco’s gold bar to gold pot
This is enough for a billion dollar Olympic gold medals, actually made mainly of silver, and about 750,000 pots of gold waiting at the end of every rainbow. Or, although the $3,410 bar is out of stock, you’ll need to spend $694 billion at Costco on a 1-ounce gold bar.
With the price of gold, the value of reserves rises and falls
Gold prices fluctuate, but as of July 2025, the market value of all gold stored in New York’s Federal Reserve vaults could be estimated between $470 billion and $680 billion, depending on the market value of gold, which reached record highs this year.
Who owns all the money in the Fed stockpile?
However, none of the money belongs to the Fed, and most of them are Americans. In 2021, the US Treasury reported that it only stored about 416 metric tons of fine troy ounces. The rest belongs to foreign governments, other central banks, and official international organizations. They trust that the Fed will remain trapped 80 feet below road level.
A great opportunity for a robbery movie?
Where is the world’s gold stored?
The US stores money elsewhere. The largest US-owned gold stockpile is located in Fort Knox, Kentucky, with roughly 147.3 million fine ounces of gold, approximately 4,583 metric tons.
Other countries, including Germany, Italy and France, also have large reserves of gold.
Why do people still love money?
Beyond that brilliance, some investors, central banks and governments see it as an attractive asset that stimulates confidence, even in times of uncertainty.
“It’s historic money. It goes back thousands of years as original money,” said Aakash Doshi, global head of gold strategy at State Street Investment Management. “It goes back to Biblical times. It was one of the gifts from the three wise men.”
According to Joe Cavatoni, a senior market strategist at the World Gold Council, gold today is not used as a large-scale payment method, but it is a highly liquid asset with no specific credit risk and is not directly managed by the central bank.
Some investors still see it as a hedge against “real” money, something that cannot be printed – markets and economic volatility.
“Gold works not only in bad times, but in good times,” Kabatoni said.
Why gold demand has skyrocketed
While the dollar and euros won’t go away any time soon, Dosi said that global debt and its share of debt have increased, which has led to an increase in demand for true hard assets that complement Fiat currency over the past decades.
In 2024, gold overtook the euro as the second largest global reserve asset after the US dollar, according to a June European Central Bank report.
Doshi has altered trade alliances such as the 2008 financial crisis, the US-China trade war, and the re-arrangement of the North American free trade agreement, expanding sanctions to raise interest in gold, and some central banks to raise interest in gold, in order to seek stability amid economic shocks and global political tensions.
Cavatoni said the recent downgrade of rating agencies on the creditworthiness of the US government and the risks associated with retaining the Treasury Department are likely to lie in people’s minds, adding that an increase in demand is coming from emerging market central banks.
Gold prices have risen since the beginning of 2024
He added that when market risks are unknown and uncertain, gold is rated even more, “it’s like the world we live in now.”
“When I think about their absolute level of holding, they are still very low compared to the total reservoir percentage, and I think there is still an opportunity for them to continue growing,” Kabatoni said. “But I think we’re definitely paying close attention to what the performance looks like with the second quarter data and other soundbites.”
Contact Rachel Barber at rbarber@usatoday.com and follow her at x @rachelbarber_
Illustrations by Veronica Bravo
