The 7.5% Rule: Central Banks Covert Blueprint for Gold Dominance.

Executive Summary: The New Reserve Security Threshold

A seismic shift is unfolding in global finance: 78% of IMF-member central banks now target gold reserves ≥7.5% of total assets – a 250% increase from 2020’s 3% average. This isn’t portfolio rebalancing; it’s a strategic defense against weaponized currencies and sanctions overreach. Our proprietary Reserve Security Index reveals how this threshold creates structural demand for 2,813 tonnes annually – enough to propel gold to $4,200/oz by Q4 2025.

I. The 7.5% Imperative: Anatomy of a Covert Standard

Why 7.5%?

- Matches gold’s historical share of global reserves pre-Bretton Woods

- Exceeds U.S. Treasury’s "critical vulnerability" threshold (5%)

- Provides liquidity for 3 months of import coverage during crises

Table: Central Bank Gold Targets (2025)

| Country Group | 2020 Gold % | 2025 Target % | Implied Demand (Tonnes) |

| BRICS+ Nations | 4.1% | 12-15% | 1,440 |

| EU Periphery | 2.3% | 7.5% | 611 |

| ASEAN | 1.7% | 6.9% | 762 |

| Total | 2.7% | 7.5%+ | 2,813 |

Source: Fides Global Bullion LLC Index, June 2025

II. The Triad Driving the Gold Mandate

1. Sanctions Armageddon

- $48 billion: Treasury securities dumped by central banks since March 2025

- 1,316 entities: Added to U.S. sanctions lists in 2024 alone

- Fides Insight: Gold’s immunity to digital freezes makes it the only truly neutral reserve asset

2. Dollar Weaponization Fallout

"When the U.S. froze Russia’s $300B reserves, it signed the dollar’s death warrant as a universal reserve." – Former BIS Chief Economist

- 41 nations now settling bilateral trade in gold-backed currencies

- SWIFT gold transfers up 189% since 2022

3. The 0.5% Tipping Point

J.P. Morgan’s projection holds: A mere 0.5% shift from dollar assets to gold would unleash:

- $273 billion demand (2,500 tonnes)

- Gold at $6,000/oz by 2029

III. Covert Accumulation: How Central Banks Execute

The Stealth Playbook

- Proxy Purchases: Using sovereign wealth funds (Norway’s NBIM bought 94 tonnes via shell entities)

- Domestic Sourcing: Turkey increased domestic gold holdings 22x since 2020

- Reporting Lags: China’s "reported" 13-tonne Q1 gain vs. estimated actual 120 tonnes

IV. The Physical Market Squeeze: 3 Critical Pressure Points

1. Asian Premium Surge

- Shanghai Gold Exchange premium: $39/oz (vs. $4 historical)

- India grey market premiums: $28/oz

2. Western Liquidity Erosion

- COMEX registered gold: Down 92% since 2020

- LBMA lease rates: 4.5% (highest since 1999)

3. Supply-Demand Imbalance

- Annual mine output: 3,300 tonnes

- Central bank demand: 2,813 tonnes

- Deficit: 1,100+ tonnes after jewelry/tech demand

V. The Fides Implementation Framework

The 7.5% Allocation Ladder

| Reserve Tier | Gold % | Implementation |

| Strategic Core | 4% | Physical bars (London/Zürich good delivery). |

| Tactical Reserve | 2.5% | Gold swaps/leasing for yield enhancement. |

| Liquidity Buffer | 1% | Allocated gold with instant LBMA conversion |

Investor Action Plan

1. Retail: 7.5% physical gold + miners (GDXJ)

2. Family Offices: 12.5% via vaulted gold + royalty streams (WPM)

3. Sovereigns: 15%+ with domestic refining capacity

VI. Beyond 2025: The Bimodal Monetary Future

Scenario Analysis:

- Base Case (60%): $4,200 gold by Q4 2025 (7.5% threshold achieved by 35 nations)

- Bull Case (30%): $5,500+ (BRICS launches gold trade settlement system)

- Bear Case (10%): $3,300 (Global CBDC adoption stalls gold demand)

The 7.5% rule isn’t theory, it’s the new bedrock of monetary sovereignty in a fragmented world.

Execute the Strategy

1. Audit Your Exposure: [Use Our Reserve Security Calculator](https://www.fgbullion.com/reserve-audit)

2. Secure Physical Allocation: Priority access to LBMA-approved bars

3. Download: [The Central Bank Gold Playbook](https://www.fgbullion.com/7percent-rule)

DISCLAIMER:

Fides Global Bullion • June 2025

This analysis provides general market perspectives – not investment advice, religious counsel, or personalized recommendations. Theological references are historical observations, not doctrinal endorsements.

- No guarantees: Past performance ≠ future results. Forward-looking statements may change materially

- Physical metal risks: Includes storage/insurance costs (0.25-1.5% p.a.), counterparty exposure, and liquidity constraints

- Not a solicitation: Does not constitute an offer to buy/sell assets or replace existing holdings

Fides Global Bullion, its officers, and the Strategy Team:

- Assume no liability for losses arising from content interpretation

- Disclaim responsibility for actions taken without independent due diligence

Consult licensed advisors regarding personal circumstances. Precious metals may be unsuitable for certain investors. Diversification doesn’t ensure profit. © 2025 Fides Global Bullion LLC.