September 6th• 3 min read
Tether Expands Gold Strategy as El Salvador Buys First Gold in 35 Years
Tether deepens gold investments with $8.7B in reserves while El Salvador makes its first bullion purchase since 1990, signaling a strategic shift toward gold as a Bitcoin complement.
Key takeaways
🥇 Strategic Diversification: Tether holds $8.7 billion in gold bars in Zurich vaults and plans to invest $100 million more in mining royalty firms.
🏛️ El Salvador's Move: The nation purchased $50 million in gold (13,999 troy ounces), its first bullion buy in 35 years, bringing total holdings to $207 million.
⚖️ Balanced Approach: Both entities frame gold as complementary to Bitcoin rather than competitive, with Tether CEO calling gold 'natural Bitcoin.'
💼 Mining Expansion: Tether is increasing its stake in Elemental Altus Royalties, a Canadian firm buying future revenue streams from gold mines.
🌍 Global Trend: The moves align with record central bank gold purchases worldwide, with institutions accumulating over 1,000 tonnes annually.
Deep dive
This development represents a significant strategic evolution for both Tether and El Salvador, moving beyond pure cryptocurrency exposure toward a more diversified precious metals approach.
Tether's substantial gold holdings of $8.7 billion, combined with its planned additional $100 million investment in mining operations, demonstrates the stablecoin issuer's commitment to backing reserves with traditional store-of-value assets alongside its USD holdings.
El Salvador's first gold purchase in three decades, worth $50 million, signals the Bitcoin-forward nation's recognition that diversification strengthens rather than weakens its alternative currency strategy.
The timing is particularly notable as global central banks have been accumulating gold at record levels, with over 1,000 tonnes purchased annually for the past two years.
This coordinated move by a major stablecoin issuer and a sovereign Bitcoin adopter suggests growing institutional acceptance of gold as a complementary hedge asset in the digital age.
Polaris insights AI-generated
Disclaimer: This article may contain content generated or assisted by AI, based on information from public sources. While we aim for accuracy, no content should be taken as financial or trading advice. Always do your own research and consult a professional before making investment decisions. Markets are volatile and involve risk.
