Dollar Swap Lines Are Now A Political Tool – Gold & Silver Markets Are Responding

Jun 3, 2026, 11:53 AM EDT

You may have seen the news yesterday that gold has now overtaken US Treasuries as the world’s top reserve asset. According to the European Central Bank, gold now accounts for 27% of global central bank reserves, compared with 22% for US Treasuries. Central banks have been net buyers of physical gold for many years now, and now hold more than 36,000 tonnes of gold, the highest level since the Bretton Woods era.

In this excerpt from our monthly webinar, Stephen Flood and I speak to Jan Skoyles and discuss why central banks are turning towards physical gold, why trust in the dollar system is eroding, and why dollar swap lines are increasingly becoming a political tool rather than a purely financial safeguard.

As we discuss, this is not simply a “pro-gold” story, ‘nor is it a “not-dollar” story. Central banks are not buying gold because they have suddenly become sentimental about shiny metal. They are buying it because, in a world of declining trust, physical gold offers the shortest distance between a country and its wealth.

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About Author

Dave Russell

David is the CEO of GoldCore. Until Summer 2023 he was the Director of Marketing and Communications, responsible for all marketing and communications strategies and branding. David joined GoldCore in 2008 as Director of Business Development and later took over as Director of Marketing and Communications in 2020. Prior to this Dave managed and operated his own Marketing Agency and completed multiple coaching qualifications. "Working for GoldCore gives you a fantastic lens through which to view global financial and geopolitical developments. I am very proud to be part of a company that contributes to increasing investors understanding of these developments." When he’s not at work, David is passionate about sailing and has completed the ‘Round Ireland Yacht Race’ twice.