What countries are considering converting sovereign wealth funds from US bonds to gold?

 

Current market data from early 2026 shows a significant structural shift in global reserves, with gold recently surpassing U.S. Treasuries in total value for the first time in decades. This trend is primarily driven by central banks and Sovereign Wealth Funds (SWFs) seeking to diversify away from U.S. dollar-denominated assets due to geopolitical risks, rising U.S. debt levels, and the "weaponization" of reserves. 

The following countries have recently reduced U.S. bond holdings or are actively increasing gold reserves through their official institutions: 

Major Nations Actively Reallocating to Gold 

China

: Has consistently reduced its U.S. Treasury holdings, reaching their lowest levels since 2008 in late 2025. Simultaneously, the People's Bank of China recorded over 14 consecutive months of gold accumulation through early 2026.

India

: The Reserve Bank of India significantly cut its U.S. debt holdings by over $50 billion in late 2025 while increasing its gold reserves to over 880 metric tonnes.

Poland

: One of the most aggressive buyers, 

Poland

 added 95 tonnes in 2025 alone, aiming for gold to comprise 20% of its total reserves.

Türkiye (Turkey)

: Led global gold buying alongside 

China

 and 

Poland

 between 2020 and 2025, significantly increasing the gold share of its reserves.

Brazil

: Recently reduced its U.S. Treasury holdings while purchasing gold for multiple consecutive months through late 2025. 

Other Notable Participating Countries

• Middle East (GCC): Countries like 
  Saudi Arabia
   and 
  Qatar
   have reduced exposure to U.S. debt or increased gold holdings as a "backup plan" for oil-based wealth.
• Central Asia: 
  Kazakhstan
   and 
  Uzbekistan
   remain major players, with 
  Uzbekistan
   reportedly holding nearly 80% of its total international assets in gold as of 2024.
• Europe: The 
  Czech Republic
   and 
  Hungary
   have notably expanded their gold reserves as part of a broader regional shift toward hard assets.
• Singapore
  : Reached its highest gold reserve levels since independence in 1965, signaling a savvy diversification move by the city-state. 

Sovereign Wealth Fund (SWF) Specific Trends

A 2025 Invesco study found that:

• 47% of sovereign investment professionals plan to increase gold holdings as a strategic hedge against rising U.S. debt levels and reserve weaponization.
• 73% of respondents expect the U.S. dollar's share of global reserves to decline over the next five years.