The custodians of trillions of dollars of global central bank reserves are eyeing a move away from the greenback into gold, the euro and China’s yuan as the splintering of world trade and geopolitical upheaval spark a rethink of financial flows.
According to a report by the Official Monetary and Financial Institutions Forum (OMFIF) due to be published later on Tuesday, one in three central banks managing a combined $5 trillion plan to increase exposure to gold over the next one-to-two years after stripping out those planning to decrease, the highest in at least five years.
The survey of 75 central banks — carried out between March and May — gives a first snapshot of the repercussions of US President Donald Trump’s April 2 Liberation Day tariffs that sparked market turmoil and a slide in the safe-haven dollar and US Treasuries.
Gold, which central banks have already been adding at a record pace, was seen benefiting even further longer term, with a net 40% of central banks planning to increase gold holdings over the next decade.
“After years of record-high central bank gold purchases, reserve managers are doubling down on the precious metal,” OMFIF said.
The dollar, the most popular currency in last year’s survey, fell to seventh place this year, OMFIF said, with 70% of those surveyed saying the US political environment was discouraging them from investing in the dollar — more than twice the share a year ago.
In currencies, the euro and yuan stand to benefit the most from a diversification away from the dollar.
A net 16% of central banks surveyed by OMFIF said they plan to increase euro holdings over the next 12 to 24 months, making it the most in-demand currency, up from 7% a year ago, followed by the yuan.
But over the next decade, the yuan is more favoured, with a net 30% of central banks expecting to increase holdings and its share of global reserves seen tripling to 6%.
Net number of central banks looking to increase currency holdings over the next 12-24 months.
Separately, three sources who deal directly with reserve managers, told Reuters they saw the euro as now having the potential to recapture the share of currency reserves lost following the 2011 euro debt crisis by the end of this decade. They cited more positive sentiment among reserve managers towards the euro following Liberation Day.
That would mean a recovery to a roughly 25% share of currency reserves, from around 20% currently, representing a key moment in the bloc’s recovery from the debt crisis that threatened the euro’s existence.
Max Castelli, head of global sovereign markets strategy and advice at UBS Asset Management, told Reuters that reserve managers made many calls after Liberation Day to ask if the dollar’s safe-haven status was at risk.
“As far as I remember, this question has never been asked before, not even after the great financial crisis in 2008.”
The average expectation for the dollar’s share of global FX reserves in 2035 was 52%, the OMFIF survey showed, remaining the No.1 reserve currency but seen down from the current 58%.
Euro’s moment?
OMFIF survey respondents expected the euro to reach about a 22% share of global reserves in 10 years’ time.
“The euro’s share of global reserves will almost surely rise over the next few years, not so much because Europe is viewed so much more favorably, but because the dollar’s status is diminished,” said Kenneth Rogoff, Harvard professor and former IMF chief economist, told Reuters by e-mail ahead of OMFIF’s publication.
The dollar has been hurt by US policy uncertainty
But Europe could attract a higher share of reserves sooner if the bloc is able to boost its pile of bonds that are currently dwarfed by the $29 trillion US Treasury market, while integrating its capital markets, the sources that speak directly to reserve managers, told Reuters.
ECB President Christine Lagarde has also urged action to bolster the euro as a viable dollar alternative.
The euro is the “only real alternative currency for the moment to make a significant change in the level of reserves,” said Bernard Altschuler, global head of central bank coverage at HSBC, adding he saw it as “realistic” for the euro to reach a 25% share of global reserves in 2-3 years if those issues are addressed.
The European Union is the world’s largest trading bloc. Its economy is far bigger than the dollar’s other rivals. Capital controls limit the appeal of the yuan.
Momentum for change has gathered pace, with Europe signalling willingness to curb its dependence on the US by boosting defence spending, including through more joint EU borrowing. Germany is ramping up spending, while the EU is trying to revive efforts to integrate its capital markets.
Public pension and sovereign wealth funds, also surveyed by OMFIF, saw Germany as the most attractive developed market.
UBS Asset Management’s Castelli said he was receiving many more questions about the euro, estimating the euro could recover to a 25% share of reserves by the end of the 2020s.
At the most bullish end, Francesco Papadia, who managed the ECB’s market operations during the debt crisis, estimated the euro could recover to 25% in as soon as two years.
Reserve managers he holds discussions with were more willing to look at the euro than before, Papadia, senior fellow at think-tank Bruegel, said.
Zhou Xiaochuan, China’s central bank chief from 2002 to 2018, agreed the euro’s role as a reserve currency could grow. However, there’s “homework to do,” he told Reuters on the sidelines of a recent conference.
(By Yoruk Bahceli, Dhara Ranasinghe, Jiaxing Li, Leika Kihara and Emily Green; Editing by Elisa Martinuzzi and Anna Driver)
Vancouver, British Columbia–(Newsfile Corp. – June 24, 2025) – Questcorp Mining Inc. (CSE: QQQ) (OTCQB: QQCMF) (FSE: D910) (the “Company” or “Questcorp“) is pleased to announce the commencement of the first phase work program at its La Union carbonate replacement deposit (CRD) project, located in Sonora, Mexico. Questcorp is earning a 100% interest from Riverside Resources Inc. in the 2,520 ha (25 km sq) property by making a series of cash payments and share issuance and completing a series of exploration expenditures.
The initial stages of phase one will concentrate on finalizing the location of drill targets and drill pads for the upcoming drill program. Field activities are underway and include:
Establishment of 5 to 6 one kilometre picket lines for IP surveying which commenced on Monday. The IP lines are being run over the heart of some of the past mining areas which continue to be known expansive target areas to help evaluate further potential, possible most favorable zones and assist to model the larger context for the upcoming drill holes. This work further de-risks the up-coming first pass drill holes.
Sampling of limestone and dolomite host rocks across the mineralization from country rock through to the heart of mineralization for Black Light analysis and alteration vector modeling. The objective is to use the changes or variance in fluorescence to map alteration patterns to vector into the heart of the manto and chimney plumbing systems.
Geological mapping of drill collar sites and section lines particularly along the surface of the IP lines to help develop the most accurate interpretations of the IP data for drill hole planning.
Rock and soil sampling of peripheral areas to identify additional targets including study of the stratigraphy for understanding and context with the many mineralization showings on the large district holding.
“We are extremely pleased to initiate the fully funded first phase work program at La Union,” commented Questcorp President & CEO Saf Dhillon. “We are first concentrating on de-risking the upcoming 1,500 metre drill program scheduled for mid to late Q3 through alteration mapping and IP geophysics,” he continued. “Under the technical expertise of John-Mark Staude and the Riverside team we are confident we are maximizing every exploration dollar being invested at La Union,” he concluded.
Riverside Resources Inc. President & CEO John-Mark Staude stated “The work program is going well, I have been in the field this past week with the exploration team and pleased to see the safe, high quality focus of good work and diving into careful review of the planned drill sites and now the IP program is underway. It is great to work with Saf, Tim and the entire Questcorp organization.”
The La Union Project
The La Union Project is a carbonate replacement deposit (“CRD“) project hosted by Neoproterozoic sedimentary rocks (limestones, dolomites, and siliciclastic sediments) overlying crystalline Paleoproterozoic rocks of the Caborca Terrane. The structural setting features high-angle normal faults and low-to-medium-angle thrust faults that sometimes served as mineralization conduits. Mineralization occurs as polymetallic veins, replacement zones (mantos, chimneys), and shear zones with high-grade metal content, as shown in highlight grades of 59.4 grams per metric tonne (g/t) gold, 833 g/t silver, 11% zinc, 5.5% lead, 2.2% copper, along with significant hematite and manganese oxides, consistent with a CRD model (see the technical report entitled “NI 43-101 Technical Report on the Union Project, State of Sonora, Mexico” dated effective May 6, 2025 available under Questcorp’s SEDAR+ profile). These targets also demonstrate intriguing potential for large gold discoveries potentially above an even larger porphyry Cu district potential as the Company’s target concept at this time.
Questcorp cautions investors grab samples are selective by nature and not necessarily indicative of similar mineralization on the property.
Riverside, the operator of the La Union Project, is currently lining up the various geophysical contractors to immediately undertake orientation surveys and follow up detailed survey to confirm and enhance the drill targets.
The technical and scientific information in this news release has been reviewed and approved by R. Tim Henneberry, P. Geo (BC), a director of the Company and a “qualified person” under National Instrument 43-101 – Standards of Disclosure for Mineral Projects.
About Questcorp Mining Inc.
Questcorp Mining Inc. is engaged in the business of the acquisition and exploration of mineral properties in North America, with the objective of locating and developing economic precious and base metals properties of merit. The Company holds an option to acquire an undivided 100% interest in and to mineral claims totaling 1,168.09 hectares comprising the North Island Copper Property, on Vancouver Island, British Columbia, subject to a royalty obligation. The Company also holds an option to acquire an undivided 100% interest in and to mineral claims totaling 2,520.2 hectares comprising the La Union Project located in Sonora, Mexico, subject to a royalty obligation.
Contact Information
Questcorp Mining Corp. Saf Dhillon, President & CEO Email: saf@questcorpmining.ca Telephone: (604) 484-3031
This news release includes certain “forward-looking statements” under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to Riverside’s arrangements with geophysical contractors to undertake orientation surveys and follow up detailed survey to confirm and enhance the drill targets. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: the ability of Riverside to secure geophysical contractors to undertake orientation surveys and follow up detailed survey to confirm and enhance the drill targets as contemplated or at all, general business, economic, competitive, political and social uncertainties, uncertain capital markets; and delay or failure to receive board or regulatory approvals. There can be no assurance that the geophysical surveys will be completed as contemplated or at all and that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
A stack of one-kilogram gold bullion bars inside a vault in Germany.
Central banks around the world have dumped $48 billion in Treasuries since late March alone. At the same time, central banks keep buying gold, continuing a trend that began years earlier.
BofA estimated the central banks’ gold holdings are now equivalent to just under 18% of outstanding U.S. public debt, up from 13% a decade ago.
“That tally should be a warning for US policymakers. Ongoing apprehension over trade and US fiscal deficits may well divert more central bank purchases away from US Treasuries to gold,” analysts warned.
Meanwhile, the market still doesn’t appear to be overexposed to gold. BofA estimated that investors have allocated just 3.5% of their portfolios to gold.
And regardless of how Congress ends up rewriting the budget bill, analysts said deficits will remain elevated.
“Therefore, market concerns over fiscal sustainability are unlikely to fade no matter the result of Senate negotiations,” BofA predicted. “Rates volatility and a weaker USD should then keep gold supported, especially if the US Treasury or the Fed are ultimately forced to step in and support markets.”
Gold has firmly reasserted itself as a strategic anchor in the global financial system, now ranking second only to the US dollar—and ahead of the euro—in terms of official reserve holdings measured at market value. This structural shift, outlined in the European Central Bank’s latest report on the international role of the euro, underscores how price dynamics, central bank behavior, and geopolitical realignment have collectively elevated gold’s monetary relevance.
From Inflation Hedge to Geopolitical Barometer
In 2024, gold prices surged by 30%, followed by another 30% year-to-date in 2025, briefly reaching an all-time nominal high of $3,500 per troy ounce in April. This sharp rally signals more than just a technical or inflation-driven cycle—it reflects a broader revaluation of gold’s role amid rising global uncertainty.
Daily Gold Price Chart – Source: ActivTrades
One of the more recent illustrations of this shift came with the spike in gold futures following a military flare-up between Israel and Iran, confirming gold’s renewed function as a geopolitical hedge.
While traditionally influenced by real interest rates and inflation expectations, gold has increasingly decoupled from such monetary drivers. Between 2008 and early 2022, the negative correlation between gold prices and real yields made the metal a reliable hedge in low-rate or high-inflation environments. Yet since Russia’s invasion of Ukraine, this pattern has weakened significantly. Despite rising or stable real yields, gold has continued to climb, suggesting that its valuation is being driven by forces beyond rate expectations.
Non-monetary factors have now taken center stage—especially geopolitical risk, reserve diversification, and sanctions avoidance. This transformation reflects a recalibration by central banks and investors alike, who are positioning gold not only as an inflation buffer, but also as a politically neutral store of value. In an era of increasing geopolitical fragmentation and weaponized finance, gold’s lack of counterparty risk has made it uniquely attractive.
The implications are far-reaching. If gold is no longer primarily priced off opportunity cost or real yields, then conventional valuation models understate its defensive strength. Instead, gold is behaving more like a global insurance asset, valued for its sovereignty-proof liquidity and its historical reliability in times of crisis.
Key Role of Central Banks
The most significant force behind gold’s recent ascent is central banks’ purchases. In 2024, central banks bought over 1,000 tonnes of gold—double the prior decade’s average—pushing global official holdings to 36,000 tonnes, near the 1965 Bretton Woods peak of 38,000 tonnes. This unprecedented accumulation lifted global official holdings to 36,000 tonnes, approaching the historic peak of 38,000 tonnes reached in 1965 during the Bretton Woods era.
At current market valuations, these holdings have pushed gold’s share in total global foreign exchange reserves to 20%, overtaking the euro’s 16% for the first time according to the ECB’s recent findings. This milestone is not the result of speculative demand, but of deliberate, sustained reallocation by central banks—signaling a strategic repricing of gold as a monetary reserve asset.
Notably, this wave of buying has been highly concentrated in emerging markets, particularly China, Turkey, and India, which together have added more than 600 tonnes since late 2021. Their purchases reflect a broader movement among non-Western economies to de-risk from reserve currencies tied to Western financial systems and legal jurisdictions.
From Diversification to De-Risking
Survey data from the World Gold Council conducted in early 2024 helps unpack the motives behind this buying. Diversification remains the primary rationale, cited by two-thirds of central banks. However, geopolitical risk—specifically the desire to insulate reserves from sanctions or political pressure—was cited by 40% of respondents. A substantial number of central banks also pointed to gold’s role as a long-term hedge against inflation, default risk, and systemic disruption.
These motivations are particularly strong in emerging and developing economies, where one in four central banks explicitly linked their gold strategy to concerns over sanctions or anticipated changes in the global monetary order. In fact, half of the top ten annual jumps in gold’s reserve share since 1999 followed sanctions against the countries involved. This underscores gold’s appeal as an unencumbered asset, free from the risks of seizure or political interference.
Taken together, these trends mark a departure from reserve management as a purely financial optimization exercise. Today, for many sovereign actors, gold serves as a hedge not just against inflation or currency depreciation, but against the rules of the existing system itself.
Conclusion: Gold’s Strategic Repricing
The ECB’s findings reflect a broader paradigm shift in the logic of reserve accumulation. Gold has not only appreciated in nominal terms—it has been reconceptualized as a core asset for monetary sovereignty and geopolitical insulation.
Its elevation to second place in global reserves is more than symbolic. It signals a growing distrust in traditional reserve currencies and a collective desire among central banks—particularly outside the Western alliance—to build resilience against political and financial coercion.
In this new global context, gold is no longer a passive relic of the past. It is increasingly being recognized as an active pillar of reserve strategy, with implications that stretch far beyond price charts and interest rate models.
North Vancouver, British Columbia–(Newsfile Corp. – June 9, 2025) – Lion One Metals Limited (TSXV: LIO) (OTCQX: LOMLF) (“Lion One” or the “Company“) is pleased to announce the appointment of Edward (Ned) Collery to the Board of Directors.
Mr. Collery is the founder and President of Pelham Investment Partners LP, a private investment partnership based in New York. Prior to founding Pelham Investment Partners, Mr. Collery worked as a research analyst and partner in the investment management industry, including as a partner at private investment firm SC Fundamental, and an analyst at private New York-based investment firm Arbiter Partners. Mr. Collery has over a decade of investment experience in the natural resource sector and mining space and is also currently a director of the TSX-V listed nickel producer Nickel 28 Capital Corp. Mr. Collery holds a B.A. in Economics from Vanderbilt University with a minor in Financial Economics.
“We are excited to welcome Ned Collery to our Board of Directors, and we are confident his expertise will contribute to the future success of Lion One”, said Lion One Chairman and President Walter Berukoff.
About Lion One Metals Limited
Lion One Metals is an emerging Canadian gold producer headquartered in North Vancouver BC, with new operations established in late 2023 at its 100% owned Tuvatu Alkaline Gold Project in Fiji. The Tuvatu project comprises the high-grade Tuvatu Alkaline Gold Deposit, the Underground Gold Mine, the Pilot Plant, and the Assay Lab. The Company also has an extensive exploration license covering the entire Navilawa Caldera, which is host to multiple mineralized zones and highly prospective exploration targets.
Neither the TSX-V nor its Regulation Service Provider accepts responsibility or the adequacy or accuracy of this release
This press release may contain statements that may be deemed to be “forward-looking statements” within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein are forward-looking information. Generally, forward-looking information may be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “proposed”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases, or by the use of words or phrases which state that certain actions, events or results may, could, would, or might occur or be achieved. This forward-looking information reflects Lion One Metals Limited’s current beliefs and is based on information currently available to Lion One Metals Limited and on assumptions Lion One Metals Limited believes are reasonable. These assumptions include, but are not limited to, the actual results of exploration projects being equivalent to or better than estimated results in technical reports, assessment reports, and other geological reports or prior exploration results. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance, or achievements of Lion One Metals Limited or its subsidiaries to be materially different from those expressed or implied by such forward-looking information. Such risks and other factors may include, but are not limited to: the stage development of Lion One Metals Limited, general business, economic, competitive, political and social uncertainties; the actual results of current research and development or operational activities; competition; uncertainty as to patent applications and intellectual property rights; product liability and lack of insurance; delay or failure to receive board or regulatory approvals; changes in legislation, including environmental legislation, affecting mining, timing and availability of external financing on acceptable terms; not realizing on the potential benefits of technology; conclusions of economic evaluations; and lack of qualified, skilled labor or loss of key individuals. Although Lion One Metals Limited has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated, or intended. Accordingly, readers should not place undue reliance on forward-looking information. Lion One Metals Limited does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
