Which Countries Have The Most Gold Reserves

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Which Countries Have The Most Gold Reserves

Which Countries Have The Most Gold Reserves

“Have you heard of the Golden Rule? Who has the golden rule? It’s really an old joke, but countries with large gold reserves live by their laws while few countries are still on the gold standard.

India Has 10th Largest Gold Reserves In The World, Reveals World Gold Council Data

Governments and central banks hold gold for various reasons. Maybe they don’t believe in money at all, or maybe they’re ready for an economic downturn. After all, gold has a good history of holding its value during periods of major depreciation.

Unlike cash and bonds, gold does not carry default risk (the possibility that the other party will default on their obligations). Also, gold helps to diversify the country’s wealth.

If gold prices rise sharply in the coming months and years, the balance of the economy could change dramatically. So there’s nothing really surprising about the countries that hold gold, but the number – and the top gold-owning countries – might surprise you.

Ironically, the country that ended its gold standard in 1934 is now the world’s largest gold holder. According to the International Gold Council, the Federal Reserve held 8,133 tons (sometimes called metric tons) of gold as of July 28, 2022.

Here Are The Countries With The Most Gold Reserves, And The Ones That Have Been Buying It The Most

. Gold occurs in various locations, including Fort Knox, Kentucky; West Point, New York; and Denver, Colorado

Central banks often hold the country’s gold. However, in the United States, gold is not owned by the Federal Reserve, but by the Treasury of the Mint.

As the Russia-Ukraine crisis and resulting sanctions severely limit trade in Europe, there is a shortage of some products, including oil and gas. E.U. Countries don’t stop supplying any goods and of course it is gold.

Which Countries Have The Most Gold Reserves

Germany ranks second among countries with gold at 3,355 tons, followed by Italy and France at 2,452 and 2,437 tons.

Top 10 Central Bank Gold Holdings (updated 2023)

However, before the Russia-Ukraine crisis and sanctions, the E.U. He was always interested in increasing the supply of gold. In 2021, the E.U. After 20 years of holding gold, the European Central Bank said that gold is “one of the world’s most important financial assets in terms of diversification of assets”.

Today, Germany’s Bundesbank, Italy’s Banca d’Italia and France’s Banque de France are undoubtedly chasing gold as a safe haven.

The Russian Federation’s 2,299 tons puts the country among the top five gold producing countries in the world. This is interesting because Russia is said to have built up gold reserves years before invading Ukraine.

Russian gold, stored in warehouses in Moscow and elsewhere in the country, was worth $140 billion at the start of the invasion of Ukraine. We can imagine that Russia has been building up gold for years in anticipation of an attack on Ukraine. The idea, apparently, is to protect Russia from the effects of sanctions that reduce the value or use of the ruble.

Top 10 Countries With Largest Gold Reserves

Then there is the question of how Russia would sell its gold if it wanted to. Although some countries have seized gold from Russia, it is said that the country may sell its gold to China, India and/or Kazakhstan.

China may not make the top five on this list, but the country’s 1,948 tons of gold is nothing to be missed. It is one of the two countries in East Asia on the list of countries with the largest gold reserves. However, China’s position on the list is difficult to determine because the country does not necessarily have a good track record in terms of transparency in the publication of economic data.

However, it is not unreasonable to think that China has a lot of gold reserves. One commenter said that China has more gold than the United States — about 20,000 tons — one might think, but it’s hard to prove.

Which Countries Have The Most Gold Reserves

Why did China decide to hoard so much gold? One reason may be the country’s apparent desire to “de-dollarize,” or reduce its reliance on the U.S. dollar, the world’s most widely used currency. Both China and Russia have increased their gold holdings in recent years to compensate for the dollar.

The Largest Gold Reserves By Country

Also, there are fears that China will attack Taiwan in the same way that Russia attacked Ukraine. If so, China may have had a specific and controversial goal of hoarding gold in recent years.

Switzerland’s love of gold is no secret, and the Swiss National Bank’s 1,040-ton reserves confirm that the country is among the top ten gold-rich countries. Switzerland is said to have the world’s largest private gold reserves.

Russia is a major producer of bullion, while Switzerland is a major destination for gold processing and transit. Customs data show that in May Switzerland received 3.1 tons of gold from Russia, worth $200 million.

According to the Federal Bureau of Customs and Border Protection: “Bringing gold from Russia to Switzerland is not prohibited by the law on measures related to what is happening in Ukraine.” On the other hand, “the current sanctions regime prohibits the export of gold to Russia.” Therefore, the debate whether Switzerland bought gold from Russia is against the law and/or the spirit of the European Union towards Russia.

Top Country By Total Reserves (including Gold) 1960/2020

Finally, the Bank of Japan rounded out the list of world’s gold hoarders, with 846 tons of gold. After Japan, India, the Netherlands, Turkey, Taiwan and Kazakhstan are the top gold exporters.

2022 was an exciting year for gold in Japan, to say the least. Steel prices in Japan reached record highs in February due to geopolitical risks and concerns over a weak Japanese yen.

In June, Japan joined the US, UK and Canada in banning exports to Russia. According to British Prime Minister Boris Johnson, this joint action “will hit the Russian oligarchs directly and strike at the heart of the President’s (President Vladimir) war machine”.

Which Countries Have The Most Gold Reserves

Holding gold can be useful. Gold is considered a hedge against inflation and exchange rate volatility and is widely sought as a means of diversifying national wealth.

Gold Mining: India Gold Market Series

There are also difficulties in storing gold. Gold reserves do not earn interest, so the country may lose interest in converting wealth into gold.

Countries with large gold reserves are neither stronger nor weaker than other countries. They may be prioritizing and choosing to keep their wealth in different ways!

David Modell serves as senior director of analytics and sourcing at Portfolio Wealth Global. He has written for Motley Fool, InvestorPlace, Tipranks and Crush Street, among other publications. David is also very active on social media with tens of thousands of followers on YouTube, Twitter, StockTweets and other popular sites. Rely on David for wealth and wealth building services for investors and business people of all sizes.

The writing team uses only high-quality first-party sources to support the information in our articles. Read our administrative policy to learn more about how we ensure our content is impartial, accurate and up-to-date.

Top 10 Countries With Largest Gold Reserves 2022

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Which Countries Have The Most Gold Reserves

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Countries With Highest Gold Reserves And Total Reserves (2 Slides)

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