Why El Salvador’s $50M Gold Bet Matters for Bitcoin’s Next Move?

Key Insights:

• El Salvador bought $50 million worth of gold, the first such move in 35 years.
• The country also holds 6,283 BTC, showing a twin bet on gold and Bitcoin.
• Gold’s rise and Bitcoin’s weakness highlight a new split, shaping Nayib Bukele’s strategy.

El Salvador has once again surprised the finance world with its reserve strategy. The country’s central bank just bought 13,999 ounces (397 kg) of gold worth $50 million.

This is the first gold purchase in 35 years. It lifts El Salvador’s gold reserves by more than 31%, taking them to about 58,105 ounces (1,647 kg), now valued at close to $207 million.

For a small country, that is a big number. It shows how serious the government is about building a mix of strong reserves.

El Salvador Adds Gold Alongside Bitcoin in Reserve Plan

This gold buy, as revealed by Nayib Bukele, is not happening in isolation. El Salvador has already become famous for holding Bitcoin. The government has been buying one Bitcoin every day, starting way back in 2022.

The country now owns more than 6,283 BTC, worth over $750 million at the current Bitcoin price. Recent data shows these holdings have made more than 150% profit since the buying program began.

Just this week, the government also moved its Bitcoin into 14 separate wallets.

Each wallet now holds no more than 500 BTC. This step was explained as protection against possible quantum threats.

While quantum computers are still early stages, some worry they could break older types of security. By spreading the Bitcoin, El Salvador has made its stash safer in case of future risks. But that was not the only line of safety that the country chose.

Now, with both gold and Bitcoin in hand, the government has two very different assets in its reserves. Gold is the “old money” hedge, while Bitcoin is the “new money” bet. Together, they form a risk-on/risk-off balance.

Why El Salvador Bets on Gold Now?

The timing of this gold move is also important.

Global central banks are buying gold at the fastest pace in decades. China, India, and Russia have been leading. For them, gold is still the ultimate safe store of value.

Gold itself recently touched record highs, showing strong demand in the face of global uncertainty.

For El Salvador, buying gold now does two things.

First, it signals to international markets and lenders, including the IMF, that the country is not “all-in” on Bitcoin. That is important because Bitcoin is seen as volatile.

Second, it helps build trust at a time when the country needs outside capital for its economy.

This is what some analysts call a “bridge” strategy. Gold works as a bridge to keep the traditional finance players happy, while Bitcoin remains the long-term upside bet.

El Salvador president Bukele himself has hinted at getting more active in gold mining, which could boost reserves further in the future.

Gold and Bitcoin Moving Apart

From late 2022 to late 2024, gold and Bitcoin often moved together. Gold gained 67%, while Bitcoin jumped nearly 400%. Many thought this trend would continue. But in 2025, the two assets split paths. As of now, gold is up 16% this year, while Bitcoin has dropped by about 6%.

This shows that even though both are “hard money,” they are driven differently. Gold rises when investors want safety. Bitcoin acts more like a high-risk bet, moving with tech-heavy markets like the Nasdaq.

For El Salvador, owning both means they are covered either way.

The Bitcoin-to-gold ratio today is around 31. That means one Bitcoin is equal to the value of 31 ounces (0.87 kg) of gold.

This is near historical highs. If Bitcoin rises again, the ratio could widen even more. If not, gold holdings help protect the balance sheet.

Meanwhile, the $50 million gold buy of El Salvador is a message. One where it says that the country is not dropping Bitcoin, but it is also not blind to risk.

And this might also mean that the country could be expecting some price correction or volatility in the crypto space, more so with September being a weak month in general.