El Salvador bought $50 million worth of gold instead of Bitcoin.

El Salvador embraces the gold trend.

On January 27, 2026, President Nayib Bukele announced that the Salvadoran government had purchased approximately $50 million worth of physical gold , adding the precious metal to the national reserves for the first time in modern history. This purchase, confirmed through Bukele's X account and a subsequent statement from the Ministry of Finance , raised El Salvador's total gold reserves to approximately 1,900 troy ounces (about 59 kg) at current spot prices ( $2,720–$2,750 per ounce ).

This is El Salvador 's first major gold purchase since the country adopted Bitcoin as legal tender in September 2021. The nation now holds approximately 6,089 BTC (worth around $580–600 million at a price of around $95,000–98,000/BTC ), making it the country with the largest Bitcoin reserves relative to GDP.

The timing of gold purchases reflects increasing global uncertainty . Persistent inflation risks , geopolitical fragmentation, and questions surrounding the stability of fiat currencies have prompted many countries—especially smaller economies —to reassess their reserve structures.

Gold is a counterweight to the risks from Bitcoin.

El Salvador's financial strategy is often viewed through the lens of its acceptance of Bitcoin. However, the purchase of gold highlights a more subtle reality: Bitcoin is not the sole pillar of the country's reserve strategy.

Gold offers stability while Bitcoin offers asymmetry. By holding both, El Salvador balances long-term growth potential with the solidity of short-term reserves – an approach more in line with traditional central banking principles than critics often believe.

National Reserve Strategy

The composition of reserves is not merely a signal but also an economic issue. By allocating capital to gold, El Salvador sends a message to markets and multilateral institutions that the country is committed to financial prudence and risk management, rather than an ideological experiment.

El Salvador's move aligns with a broader trend among emerging and smaller economies seeking to reduce reliance on major reserve currencies. Gold has regained interest as countries seek to hedge against dollar dominance, the risk of sanctions, and global financial volatility.

Assessment and Conclusion

The purchase of $50 million worth of gold is not simply a portfolio diversification move, but a strategic statement. El Salvador is no longer just the “ Bitcoin nation ”; it is actively building a hybrid reserve , combining the fastest-growing digital asset with the most time-tested and proven store of value.

This move normalizes the coexistence of Bitcoin and gold in national treasuries – a powerful signal in an era of discussion about de-dollarization , central bank digital currencies, and tokenized real assets. For staunch Bitcoin proponents, this is confirmation that even gold proponents are now buying BTC. For gold proponents, it suggests Bitcoin is no longer seen as an existential threat.

Disclaimer: The information presented in this article is the author's personal opinion in the field of cryptocurrency. This is not financial or investment advice. All investment decisions should be based on careful consideration of your personal portfolio and risk tolerance. The views expressed in this article do not represent the official stance of the platform. We recommend that readers conduct their own research and consult with experts before making any investment decisions.

Compiled and analyzed by HCCVenture

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