It’s not just central banks, individual investors and family offices that have been buying physical gold in recent years, cryptocurrency firms are gobbling up bullion too. In the secretive gold market, the crypto company Tether Holdings, SA is now the largest known holder of bullion outside of central banks and governments.
In the first three months of 2026, Tether has been a steady buyer of huge amounts of physical gold—bringing its total holdings to 132 tons, worth $19.8 billion at market value. Tether is storing this massive amount of physical gold in a nuclear bunker in Switzerland, a legacy of the Cold War.
Why Has Tether Been Buying so Much Gold?
“Gold is logically safer than any national currency,” said Tether chief executive Paolo Ardoino.
Looking ahead, the company’s CEO has said he expects Washington’s geopolitical rivals to launch a gold-backed alternative to the U.S. dollar. Tether prizes gold for its liquidity as well as the fact that it is a reserve asset that is no one else’s debt.
Recent Market Action: Gold Soars on Peace Hopes
Gold and silver surged this week on new hopes of a U.S.-Iran deal to end the 10-week war, signaling the long-term trend in precious metals points higher.
If you’ve been wondering why precious metals retreated in recent weeks as the U.S. war against Iran unfolded, you aren’t alone. It’s not because gold and silver lost their safe-haven status. The recent pullback was in response to the inflationary impact of rising oil prices which meant Federal Reserve rate cuts were less likely this year.
The why behind the pullback: Gold has become increasingly sensitive to Fed policy outlooks as lower interest rates benefit bullion, a non-interest bearing asset. Gold climbed above $5,000 in January for the first time in history! After setting that historic record high gold action turned consolidative as buyers took a well-deserved breather. An end to
the U.S.-Iran war would decrease inflationary pressures and turn the Fed’s focus back to interest rate cuts.
In the midst of this all, long-term investors like global central banks are doubling down on gold and are increasingly seeing it as an important reserve asset they need to stockpile even more.
Central Banks Are Buying and Holding
Global central banks are organizations like the Federal Reserve, People’s Bank of China, and the European Central Bank. In the face of rising global conflicts, central banks are increasingly drawn to gold as the bullion is a physical stockpile that can’t be frozen by another nation like dollar assets in a bank can be.
Central banks are buying and holding: Recent financial press headlines have shined a light on how global central banks intend to buy even more gold.
Gold is Reclaiming It’s Historic Reserve Status—Bloomberg, April 30, 2026
Why Countries Are Stocking Up On Gold – The New York Times, May 1, 2026
A first quarter 2026 survey of central banks revealed that more than one-third planned to increase their gold holdings over the next 12 months. The rest said they would maintain their current allocations.
Why Today’s Gold Prices Could Look Cheap 2 Years From Now
Central bank buying in recent years has shown that gold has become the leading reserve asset once again. Fiat currency values, like the U.S. dollar are declining.
Gold has pulled back after setting a historic high above $5,000 for the first time in history in January. The current consolidation or correction phase has not harmed the long-term rising market in gold. Looking back through the history of this bull market, correction phases have proven to be golden buying opportunities.
In the months ahead, don’t be surprised if gold retakes $5,000 and climbs back toward the all-time high above $5,500. Forecasts for gold at $6,000 or even $10,000 in the years ahead are plentiful. If a gold-backed currency alternative emerges in the years ahead, as Tether chief executive predicts, today’s gold prices will look downright cheap. If you are looking to protect and grow your wealth not just for today but for tomorrow, there’s never been a better time to trade your paper money for hard currency like gold.
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