From Government Bonds to Physical Gold: A Reorientation of Foreign Reserves
For the past four decades, US Treasury bonds have been the world's standard foreign exchange reserve asset. However, since 2022, when one major nation's foreign exchange reserves were frozen via the Western banking system, central bank governors worldwide learned a crucial lesson: assets held on another country's balance sheet carry jurisdictional risk.
The only international monetary asset that has no counterparty risk, cannot be sanctioned remotely, and has been accepted by all human civilizations for five thousand years is physical gold.
Market Dynamics & Commodity Stock Sentiment
- Global Gold (GOLD): Demonstrates remarkable resilience even when US real interest rates were high — a positive anomaly proving that demand is no longer driven by interest rate speculators, but by structural, price-insensitive central bank purchases.
- Impact on Local Issuers (ANTM.JK): Increased domestic retail gold bullion demand has boosted sales volumes in the precious metals segment, providing an income buffer during the nickel commodity's supply correction cycle.