If you're looking for evidence that 2025 was gold's year, here's a number: 53. That's how many times the yellow metal hit a new all-time high during the year, making it one of the best performances on record. Investors noticed, central banks noticed, and the entire structure of global reserves got reshuffled in the process.

ETF Demand Hits Record Territory

Physically backed gold ETFs pulled in a staggering $89 billion in 2025, according to data from GoldHub. That's not just a good year—it's the best year on record. Global ETF assets under management climbed to $559 billion, while physical holdings reached a historic 4,025 tons. The flagship SPDR Gold Shares (GLD) delivered a 64% return, rewarding investors who bet on the metal's rally.

North America led the charge with $51 billion in inflows, but the story wasn't confined to one region. Europe reversed two straight years of outflows with $12 billion in new money, driven primarily by demand in the UK and Switzerland. Geopolitical uncertainty and currency-hedged products made gold an attractive option for European investors looking to protect their portfolios.

Asia, meanwhile, recorded $25 billion in inflows—more than the region's cumulative total since its first gold ETF launched in 2007. India dominated regional demand, but China and Japan also contributed as rising prices and policy shifts encouraged investors to move away from jewelry and into ETFs.

A Historic Shift in Global Reserves

Gold's rally didn't just create opportunities for retail investors. It fundamentally altered the composition of global reserves. Thanks to surging prices and relentless central bank buying, gold overtook US Treasuries to become the world's largest foreign reserve asset for the first time in nearly three decades.

According to the World Gold Council, foreign central banks now hold gold worth nearly $4 trillion, compared to roughly $3.9 trillion in US bonds. This milestone marks a tangible step in the ongoing de-dollarization trend, as institutions gradually shift away from dollar-denominated assets toward bullion, which carries no counterparty risk.

Central banks remain the driving force behind this transition. Despite sky-high prices, they're expected to have added another 1,000 tons to their reserves in 2025. The motivations are clear: concerns about an increasingly fragmented global order, questions around fiscal sustainability, and long-term worries about currency stability.

Windfall Profits for Central Banks

Higher gold prices also delivered a windfall for central bank balance sheets. The Swiss National Bank reported a profit of approximately 26 billion Swiss francs in 2025, supported by record valuation gains on its gold holdings as prices soared.

But the picture wasn't entirely rosy. UBS economist Alesandro Bee noted the flight-to-safety dynamic cut both ways for the Swiss central bank. "On one hand, it was helped by a big increase in the price of gold, but on the other hand, the Swiss franc—another safe haven—gained in value which turned the gains on foreign equity markets into losses when converted back into francs," he explained according to Reuters.

In other words, when you're holding multiple safe-haven assets during turbulent times, you win some and you lose some. But if you're sitting on tons of gold after a year like 2025, you're probably not complaining too much.