El Salvador has made headlines by acquiring gold for the first time in more than three decades. The country’s Central Reserve Bank (BCR) confirmed the purchase of 13,999 troy ounces of gold in international markets, valued at around $50 million.
This historic acquisition increases El Salvador’s gold reserves from 44,106 troy ounces to 58,105 troy ounces, marking a 31.8% boost. The total value of the country’s gold holdings now stands at approximately $207.4 million, equivalent to about 1,807 kilograms of gold.
President Nayib Bukele posted a tweet about the purchase, saying: “Increasing our gold reserves…”
A Strategy of Diversification
The BCR explained that this purchase is part of a medium- and long-term strategy aimed at diversifying and strengthening El Salvador’s international reserves. Gold has long been seen as a safe-haven asset, offering stability in times of global economic uncertainty and inflation.
By increasing its gold holdings, El Salvador is seeking to protect its financial system and strengthen the nation’s resilience.
It is worth noting that this is the first gold purchase made by the BCR since 1990, underscoring a renewed approach to managing national reserves after more than three decades.
A Dark Contrast: The Socialist Governments
This historic move stands in sharp contrast to what happened under the socialist governments of the FMLN. In 2015, during the presidency of Salvador Sánchez Cerén, El Salvador’s Central Bank sold off nearly 80% of the nation’s gold reserves — about 206 million dollars’ worth of gold — at a time when gold prices were historically low, averaging only about $1,177 per ounce.
While other nations were buying gold to strengthen their financial security, El Salvador’s socialist leadership irresponsibly dumped most of its reserves.
To this day, there is little clarity on where that money actually went, raising serious doubts about transparency and management of the nation’s wealth. The result was a weakened financial position and the reckless destruction of a key pillar of national reserves.
This shows how the socialist rulers of the past were destructive and careless, dismantling national wealth instead of safeguarding it for future generations.
Bitcoin and Beyond
In contrast, El Salvador today is not only rebuilding its gold reserves but also investing in the future. Since 2021, the country has been steadily building a national Bitcoin reserve, which has continued to grow over the years.
By holding both gold and Bitcoin, El Salvador is demonstrating a forward-looking strategy that blends traditional safe-haven assets with modern digital innovation.
Global Context
Globally, gold represents around 20% of the international reserves held by central banks, second only to the U.S. dollar. In the past three years, central banks worldwide have collectively purchased more than 1,000 metric tons of gold annually, underlining its value as a universal strategic asset.
El Salvador’s recent decision clearly reflects a new path: one that values diversification, security, and innovation — a stark departure from the destructive policies of the socialist past.
Securing the Future
El Salvador’s latest move demonstrates a clear commitment to diversifying and safeguarding national reserves. By holding both gold and Bitcoin, the country is anchoring its financial future in solid ground, ensuring greater resilience and stability.
Unlike the socialist governments that squandered national wealth, the current strategy reflects responsibility, vision, and confidence in the future of the Salvadoran economy.
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