El Salvador Finally Buys Gold | SchiffGold

After its Bitcoin-buying spree, El Salvador has made its largest gold purchase in over three decades, diversifying its holdings into real money. Across the world, Bitcoin evangelists are joining central banks and funneling capital into history’s one and only hard money asset.

If they were smart, El Salvador would trade all their so-called “digital gold” for the real thing. Priced in actual hard money instead of depreciating fiat dollars, Bitcoin hasn’t even surpassed the November 2021 peak that it reached almost four years ago.

As Peter Schiff recently pointed out on X:

“Priced in gold, since hitting a high of about 37.2 ounces on Aug. 12, Bitcoin is down 18%, just 2% above official bear market territory…How do you square this dismal performance with all the hype?”

They aren’t the only ones. The Polish central bank just announced they’d be increasing gold holdings to make the yellow metal about ⅓ of their total reserves. As central banks continue their unstoppable gold buying spree, gold will continue ramping up to new highs as inflation, war, ballooning deficits, and every manner of uncertainty ripple throughout the world.

BREAKING NEWS

POLAND’S CENTRAL BANK GOVERNOR PLANS TO PROPOSE AN INCREASE IN THE TARGET FOR GOLD AS A PERCENTAGE OF RESERVES TO 30% FROM 20%

It is starting to add up.

Boom…

— Gold Telegraph ⚡ (@GoldTelegraph_) September 5, 2025

With Treasuries running amok, out-of-control debt, and central planners feeling themselves losing control over the economies they’re entrusted with managing, all roads eventually lead back to gold buying. To that end, central bank gold holdings have now surpassed US Treasury holdings—something that hasn’t happened since 1996. 

But it isn’t just central banks, the fiat kingdoms of the world, investing in gold. The fact that they’re hedging against the problems they themselves create should surprise no one. It also shouldn’t surprise anyone that “Bitcoin Country” El Salvador has realized that it desperately needs to add some actual hard money to its national portfolio. 

What might be more shocking to market watchers and Bitcoin obsessives, however, is that stablecoin giant Tether has also been investing heavily in the gold market. Their investments are taking many different forms, including buying shares in gold companies, issuing a gold-backed stablecoin, and holding billions of dollars in solid gold in a Zurich vault — a stash so massive, it makes this “crypto” company the largest private holder of physical gold in the world.

For thousands of years, in the kingdom of hard money, gold has retained its crown. And when all roads lead to inflation and debasement, all roads must also lead back to gold. Despite the spin from Bitcoin maximalists, gold remains the only asset that has maintained its value over centuries, not a volatile decade and a half of speculative momentum, cryptographic gimmicks, and artificial scarcity managed by a handful of software developers. It is, and always has been, the real benchmark for value and the one essential inflation hedge.

Gold vs USD 5-Year Chart

When confidence in governments wanes, when currencies are printed into oblivion and as geopolitical tensions rise, investors and nations run back and double down on gold. What we’re seeing from El Salvador is capitulation to economic gravity. The Bitcoin experiment may have been flashy, but when the dust settles, only gold stands immune to the boom-bust cycles of both fiat money manipulation and digital assets programmed out of thin air and based on hollow promises sold to a new class of gamblers.

Bitcoin may have captured headlines, but with time, there’s an increasing realization that fiat and digital fiat alike are no match for enduring economic reality. Expect more countries to follow El Salvador’s lead, not by converting dollars to Bitcoin, or buying more Treasurys as interest rates are cut by the Fed. They’ll be loading up on gold instead.

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