Visible shifts in the global financial system are rare. Even rarer is a moment when one of its core pillars begins to show signs of instability. That is precisely what appears to be happening now.
Gold is gaining importance in central bank reserves worldwide and has, for the first time in decades, surpassed US Treasuries in its relative weighting. What may seem like a statistical adjustment at first glance reveals, upon closer inspection, a development of considerable significance.
Such changes do not occur by chance. They are the expression of a deeper structural shift.
Central Banks are Acting: Gold is Moving Back to the Center
A look at the latest data shows: The share of gold in global foreign exchange reserves has risen significantly, while the share of US Treasuries has declined.
Central banks do not make such decisions on a short-term basis, nor do they act speculatively. They operate strategically, with a time horizon measured in years or even decades. When they rebalance their reserves, they do so based on fundamental considerations:
- How safe is an asset really?
- How independent is it from political influence?
- And how reliable is it in a crisis?
Gold meets these criteria in a way that very few other assets can. It is not a promise to pay, not a claim against a debtor, but physical substance.
Why This Development is Gaining Momentum Right Now
The fact that this shift is accelerating now is no coincidence. In recent years, the global environment has changed noticeably. Geopolitical tensions have increased, economic blocks are being reshaped and government intervention in assets is no longer merely a theoretical risk. At the same time, debt levels in many countries continue to rise steadily, especially in the United States. Over the long term, this also increases sensitivity toward assets whose value ultimately depends on trust.
The result is not an abrupt change in thinking, but a gradual adjustment. Central banks are not radically reducing their Dollar holdings, but they are increasingly diversifying. And gold is playing a central role in that process.
The Dollar Remains, but its Role is Changing
It would be wrong to interpret this as signaling the immediate decline of the US Dollar. For the foreseeable future, the Dollar will remain the world’s leading reserve currency.
Yet something important is changing: The Dollar is not losing its role, but it is losing its uncontested status. For decades, the Dollar was effectively without alternative. Today, alternatives are emerging step by step. Countries are building new trade structures, reducing their dependence and broadening their reserve policies.
This is not a sudden break. It is a gradual process. But it is precisely these kinds of processes that reshape systems over the long term.
A Look Back: Why This Development is so Remarkable
The chart shown above illustrates the broader context: Since the 1970s, US Treasuries had steadily gained importance, while gold was pushed into the background. Now, that trend is beginning to reverse.
Such long-term turning points are rare. They only emerge when the underlying framework changes in fundamental ways: Economically, politically and monetarily.
That gold is now once again weighted more heavily than US Treasuries is therefore not just a snapshot, but an indication that the global financial system is beginning to realign.
Inflation as a Quiet Force in the Background
At the same time, the inflation trend reveals a familiar historical pattern: Inflationary periods often do not unfold in a straight line, but in waves.
The Significance for Investors
The key takeaway from these developments is not a short-term forecast, but a structural one. The question is not whether gold or silver will rise or fall tomorrow. The real question is the environment in which these markets are operating.
If central banks are once again assigning greater weight to gold, if the dominance of the Dollar is gradually being put into perspective and if inflation risks remain in place, then the role of precious metals within a broader portfolio is changing. They are no longer viewed merely as a hedge, but once again as a strategic component.
Physical Ownership is Becoming Central Again
In a changing system, one aspect becomes especially important: Genuine ownership. Precious metals fulfill their purpose above all when they physically exist, remain clearly allocated, and are stored independently.
This is exactly where Elementum’s concept comes in:
- 100% ownership in the name of the customer
- High-security storage in Switzerland
- Independent annual audits of holdings
This structure ensures that precious metals do not exist only on paper, but are actually available when it matters most.
Bottom Line: A Quiet Shift with Major Consequences
What we are currently witnessing is not an ordinary market phase, but a transition. A transition from a system built largely on trust in paper assets to one in which real assets are regaining importance.
Such changes unfold quietly. But their effects are profound.
Gold does not stand for speculation, but for stability. Silver complements that picture with additional upside potential.
It is precisely in phases like these that the importance of a clear strategy becomes evident. What matters is not the short-term price, but the structure behind it.
Because in the end, the same question always remains: What is left when trust begins to fade?
How can you buy precious metals cheaply and store them safely?
Elementum Deutschland GmbH, based in Sindelfingen (Germany), specializes in trading physical precious metals. Customers who purchase precious metals from Elementum Deutschland (or one of the other national Elementum companies in five European countries) can store them in the renowned high-security vaulting facilities in the St. Gotthard Massif in Switzerland at Elementum International AG.
Of course, you also have the option of purchasing gold and silver directly and having it delivered to your desired address. However, storing silver in the so-called open duty-free warehouse (“offenes Zollfreilager”) at St. Gotthard offers decisive tax advantages:
- The 19% value added tax customary in Germany is completely waived on purchases and sales – a considerable price advantage that effectively secures you 19% more silver for your money.
- If you store your silver in this high-security vault, you can sell it back to Elementum Deutschland GmbH at any time – without any bureaucratic hassle and also without VAT, as the trade takes place within the duty-free warehouse. You will receive the funds via bank wire.
- VAT is only payable when you physically remove the stored silver – either by picking it up in person (after prior notification) or by having it shipped to your address.
More silver, more return
Thanks to duty-free storage, you receive 19% more physical silver when you buy. This additional amount also participates in the performance of the silver price if it rises – a leverage effect that significantly improves your return opportunities.
About Elementum
Elementum is a second-generation, owner-managed family business. Trust, consistency, and long-term thinking are at the heart of our philosophy. The Board of Directors of Elementum International AG is composed of internationally renowned experts in the money and precious metals markets, including economists, analysts, university professors, and precious metals specialists. This in-depth expertise forms the backbone of our actions – for your security, your assets, and your future.
About the Author
Stephan Bogner
CEO of Elementum International AG
Stephan Bogner, who holds a degree in business administration, studied economics at ISM Dortmund (Germany) and wrote the university’s first thesis on precious metals as a hedge against inflation. After studying in the UK and Australia and gaining professional experience in Dubai, he took over as CEO of Elementum International AG in Switzerland in 2012. His expertise in precious metals has had a significant impact on the company’s development.
Contact
Rockstone News & Research
Stephan Bogner (Dipl. Kfm., FH)
Müligässli 1, 8598 Bottighofen
Switzerland
Phone: +41-71-5896911
Email: info@rockstone-news.com
Disclaimer: This article reflects the personal opinion of the author. Elementum assumes no responsibility for the accuracy of the content and accepts no liability for its use. This article may contain links to external third-party websites. Elementum is not responsible for the content of these external sites and expressly distances itself from all information provided there. At the time the links were created, no unlawful content was identifiable. This article does not constitute a recommendation to buy or sell. Elementum International AG is a Swiss company that specializes exclusively in the storage of physical precious metals in a high-security vault facility located in the St. Gotthard mountain massif in Central Switzerland. The Board of Directors and Executive Management of Elementum International AG have been selected solely based on their professional expertise and long-standing experience in precious metals markets. As these individuals may also be professionally active outside their roles at Elementum International AG, the company has no influence over their external activities and respects their right to freedom of expression. Therefore, the views expressed by persons working with or for Elementum do not necessarily reflect the opinion of Elementum International AG. Investments in precious metals are subject to risks, including those specific to the structure of this market. Please read our full risk disclosures and consult a licensed financial advisor before making any investment decisions. Neither the author, Elementum International AG, nor Elementum Deutschland GmbH assume any liability for actions taken based on the information provided. Past performance is not indicative of future results. The cover picture has been obtained and licenced from Shutterstock.com.
