El Salvador has made its first gold purchase in 35 years, buying 13,999 ounces (397 kg) of gold for $50 million. This acquisition increases the country's gold reserves by over 31% to a total value of nearly $207 million. The move signals a strategic shift to diversify its national reserves, which are already famous for their significant Bitcoin holdings.
This gold purchase is happening alongside El Salvador's existing Bitcoin accumulation plan, where the government has been buying one Bitcoin every day since 2022. The country now holds more than 6,283 BTC, valued at over $750 million, and has seen its Bitcoin investment generate a profit of over 150%. The government recently moved its Bitcoin into 14 separate wallets as a security measure against potential quantum computing threats.
The timing of this gold purchase is notable. It aligns with a broader trend of central banks globally increasing their gold reserves. For El Salvador, the move serves a dual purpose: it demonstrates to international markets and institutions like the IMF that the country is not solely relying on the volatile nature of Bitcoin. The gold acts as a "bridge" to traditional finance, while Bitcoin remains the long-term, high-growth bet.
The article highlights a divergence in the performance of Bitcoin and gold in 2025. While gold is up 16% this year, Bitcoin has dropped about 6%. This suggests that the two assets, despite both being considered "hard money," are driven by different market forces—gold as a safe-haven asset and Bitcoin as a high-risk bet. By holding both, El Salvador is creating a balanced reserve strategy that provides coverage against different market conditions. The $50 million gold purchase sends a clear message that the country is strategically managing risk while maintaining its commitment to both traditional and digital assets.
September 2025, Cryptoniteuae