Nation acquires 13,999 troy ounces to diversify assets alongside Bitcoin holdings
El Salvador has announced the purchase of 13,999 troy ounces of gold worth $50 million, marking its first gold acquisition since 1990. The move comes as part of a broader diversification strategy to strengthen the country’s foreign reserves and reduce reliance on the U.S. dollar.
With this purchase, El Salvador’s total gold reserves rise to 58,105 troy ounces, now valued at approximately $207.4 million. The Central Bank emphasized that gold remains an “asset of universal strategic value, contributing to financial stability and protecting the economy from structural changes in international markets.”
Officials highlighted that the decision reflects a commitment to long-term stability and investor confidence, ensuring that the nation holds diversified and secure reserves.
Balancing Bitcoin with traditional assets
The move comes alongside El Salvador’s well-known embrace of Bitcoin as part of its strategic reserves. The country currently holds 6,292 BTC valued at around $696 million, making it one of the few nations to publicly adopt cryptocurrency as a reserve asset.
While Bitcoin has been central to President Nayib Bukele’s financial strategy, the gold purchase demonstrates a recognition of the need for balance between innovative and traditional stores of value.
Following a global trend
El Salvador is joining a global wave of central banks increasing their gold reserves. Countries such as China, Turkey, and India have been significant buyers in recent years, seeking protection against economic uncertainty and shifting international monetary dynamics.
Gold prices have surged to record highs this year, driven by global demand for safe-haven assets amid ongoing geopolitical and financial market turbulence. By entering the market now, El Salvador positions itself within a broader movement to hedge against volatility and inflation risks.
The Central Bank stated that the purchase “reflects the commitment to strengthening the nation’s assets and ensuring diversified, secure, and long-term reserves.” For both domestic and international investors, the move signals El Salvador’s intent to bolster financial resilience while maintaining its pioneering stance in digital assets.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.