A historic event is shaking the global financial system. For the first time in nearly three decades, central banks’ gold reserves worldwide have surpassed their holdings of U.S. Treasury bonds. This development is no longer just a passing economic headline but a sign of profound shifts reflecting declining confidence in the dollar as a symbol of financial safety and the emergence of a new global economic order.

What is driving central banks to abandon U.S. bonds, long considered the “safe asset”? And why has gold returned to the forefront as a strategic choice for wealth preservation?

Gold prices have soared to record levels, exceeding $3,500 per ounce for the first time in history, up 34% since the start of this year. According to JPMorgan Chase forecasts, prices are expected to rise further, potentially surpassing $4,000 in the near future amid strong demand from central banks and investors.

This historic rise is not just a passing investment wave but reflects a shift in the behavior of countries and financial institutions toward the U.S. dollar and its bonds. After decades of being synonymous with stability, doubts about the dollar’s future are growing, especially amid rising U.S. debt and escalating geopolitical and trade tensions.

According to the World Gold Council, global gold purchases in Q2 2025 reached about 1,249 tons. From this massive figure:

These numbers reveal that demand for gold is no longer limited to jewelry or individual investment but has become a key element in central banks’ and global institutions’ strategies as a tool to hedge against increasing risks.

Gold was not the only star in the markets; silver also made significant leaps. Its price surpassed $40 per ounce for the first time in 14 years, marking an increase of over 40% since the beginning of the year, making it the best performer in five years.

Although silver is traditionally known as the “poor man’s gold,” demand has surged for several reasons:

The numbers also reveal a supply crisis: in 2024, about 1.16 billion ounces of silver were sold, while global production did not exceed 820 million ounces. Approximately 209 million ounces were consumed as jewelry, according to the Silver Institute. This sharp deficit between supply and demand explains the upward pressure on prices.

In an exclusive interview with “Business with Lubna” on Sky News Arabia, Dr. Fadi Kamal, CEO of Gold Egypt, provided in-depth insights into the ongoing transformations in precious metals markets.

Kamal says: “Gold is no longer just a traditional safe haven; it has become the safe haven for all economies worldwide. We are in a transitional phase to reshape the global economic system, and gold will play a central role in it.”

He adds: “If we look back at the Bretton Woods Agreement, gold was the foundation of the global financial system for decades. Today, we face a similar scene where the dominance of the dollar is declining and precious metals are regaining the spotlight.”

Kamal sees today’s developments as a direct reflection of lost confidence in the international financial system, adding: “It is more than just a loss of trust; we are facing great uncertainty in the global economic system. Central banks have increased their gold reserves in recent years, led by China, reflecting fears of U.S. sanctions and the use of the dollar as a weapon.”

He also criticized what he described as “confusion in U.S. economic management,” saying: “We see former U.S. President Donald Trump making hasty decisions, then the administration or the Federal Reserve intervenes to correct them. This confusion increases the loss of confidence and strengthens countries’ move toward gold as a strategic choice.”

Kamal confirms that gold and silver prices do not reflect a speculative bubble but a turbulent economic and political reality. He says: “Gold and silver never enter a price bubble; they reflect the economic and political state of the world. The rises we see today are not exaggerated but reflect the existing uncertainty.”

He expects gold prices to exceed $3,800 per ounce before the end of the year, emphasizing that investing in gold is a long-term investment, lasting no less than eight years.

Data indicates that central banks worldwide, especially in emerging economies, are leading gold buyers.

Kamal says: “Central banks no longer rely solely on U.S. Treasury bonds or the dollar but have started building massive gold reserves, fearing U.S. sanctions. China, for example, clearly leads this trend.”

This shift worries the United States, which will have to raise bond yields to attract investors, potentially increasing pressure on its already debt-burdened economy.

Unlike gold, whose demand focuses on investment and hedging, about 80% of silver demand goes to industrial uses.

Kamal explains: “Silver today is not only a savings tool but a key element in technological industries, especially in electronic chips. This makes it likely to rise further in the coming years.”

He adds: “Next year, silver prices could rise by more than 100% compared to current levels, especially with rising mining costs and the large supply deficit.”

The rise in silver prices represents not only an investment opportunity but also a warning bell for the global economy. According to Kamal: “Increasing industrial use of silver will raise production costs and thus prices, potentially leading to a global inflation wave. We are witnessing something akin to the supply chain crises experienced during the COVID-19 pandemic.”

Kamal advises investors to allocate between 30% and 35% of their investment portfolios to precious metals, with a balanced distribution between gold and silver. He explains: “If an investor buys one kilo of gold, they can add 25% of that value in silver. If they cannot buy gold, silver can represent 15% to 20% of the investment portfolio.”

He sees investing in precious metals as a long-term strategy, not short-term, serving as a savings tool that preserves value alongside achieving investment returns currently ranging between 30% and 40%.

For more than 14 years, silver prices had not exceeded $40. Today, amid more complex and severe economic conditions, silver’s return to these levels signals the depth of the crisis facing the global financial system.

Kamal says: “What we see today is completely different from the past. Current crises are harsher, investment awareness is greater, and central banks are more cautious in building their gold and silver reserves. This makes us face a real alarm for the global economy.”

The unprecedented rise in gold and silver is not just a market movement but reflects deep shifts in economic power balances.

Gold is no longer just “ornament and treasury,” as the popular saying goes, but has returned to dominate global reserves. Silver, too, proves it is not only “the poor man’s gold” but a strategic metal holding the keys to modern industry and technology.