Which Country Has the Most Gold Reserves?
Gold has long been seen as an essential safeguard against hyperinflation and economic turmoil, so central banks stockpile large stacks to protect their financial wellbeing.
Which country possesses the most gold reserves? The United States currently boasts more than 8,000 tons of gold reserves – surpassing Germany, Italy, and France combined!
United States
The United States boasts the world’s largest reported gold reserves. Owned and stored at Fort Knox by the Treasury Department, their official US gold reserve can be found within their official United States Bullion Depository facility.
For years, the Federal Reserve’s website has listed their estimated gold holdings; however, no physical independent audit was ever performed on this inventory, sparking much discussion and debate regarding its size and purpose.
Germany
Germans’ affinity for gold may stem from its historic experiences of hyperinflation and economic uncertainty; evidence of this phenomenon can be seen both in its reserves as well as private holdings.
Germany held 1/8 of global gold coin and small bullion bar investment demand from 2008-2023, outstripping China, India, and even the US in terms of investment demand.
Italy
Italy boasts 2,451.8 tonnes of gold, making them the third-largest central bank sector holder worldwide. Italy’s official gold holdings are managed by Banca d’Italia as part of their membership of Eurosystem.
Bank of Italy reported in 2014 that “the bulk” of its foreign gold holdings are located in New York with “contingents of smaller size” stored in London and Bern. These results match what Sweden and Finland have revealed regarding their international locations for holdings of their precious metal.
France
Countries store physical gold reserves to diversify their portfolios of assets. With recent economic turmoil comes an increase in countries buying physical gold reserves to build their reserves and safeguard themselves from potential risk.
France holds one of the world’s largest gold reserves, held within La Souterraine vaults in Paris. There is even an online tour available.
Russia
Russia holds between $100 billion to $140 billion of gold reserves, representing 20% of their central bank reserves. But due to sanctions targeting shipping and trade rather than gold markets, selling this gold may prove challenging.
Russia holds the fifth-largest sovereign hoard in Moscow and St Petersburg, making it less susceptible to sanctions aimed at banks or securities markets; however, Russia will need to find ways around sanctions targeting bank and securities markets.
China
China’s gold buying spree may have been motivated in part by an attempt to strengthen its reserves against an anticipated conflict with the US, according to Kuijs, although he does not expect Beijing will replace much of their $3.2 trillion US dollar-denominated foreign exchange reserves with physical gold reserves.
Gold would likely be too costly and politically risky to justify. Furthermore, unlike traditional currencies like dollars or euros, which offer interest payments. Central banks would likely find gold lacking as an interest payment mechanism.
Switzerland
Gold mining in Switzerland is big business. Per-capita gold holdings rank first worldwide and much of this precious metal travels through four of the top 10 refineries located there.
During World War II, neutral Switzerland emerged as an epicenter of Europe’s gold trade – receiving precious metal shipments from both Allies and Axis powers. Unfortunately, not all these deliveries were conducted ethically.
Japan
Japan boasts one of the fourth-largest gold reserves worldwide and boasts numerous gold mines that contribute to this impressive figure. Japan’s history with gold can be traced back to its use as an indicator of wealth and power during kofun (tumuli) burial ceremonies in the fifth century.
Japan’s three main islands: Hokkaido, Honshu and Kyushu host six distinct epithermal gold provinces that are explored by companies like Japan Gold Corp (TSX-V:JG), with over 35 projects located there.
India
Indian’s central bank recently sent over 100 tonnes of gold held abroad back into India – marking one of its largest gold movements since 1991 and signalling the government’s commitment to economic stability.
Storing gold internationally is an increasingly common practice among central banks, but this practice may pose risks during times of geopolitical unrest.
Gold reserves are an integral component of an economy’s foundation, acting as both an anchor and source of stability during times of high inflation. Domestically, the Reserve Bank of India keeps its gold reserves stored in vaults located at its old office building on Mumbai’s Mint Road and Nagpur.
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