Which Country Has the Most Gold Reserves?
Gold reserves are held by central banks as an asset to protect a country during periods of economic instability, serving as an effective and convenient form of capital preservation. They remain one of the premier safe-haven investments.
Here is a list of the ten countries with the largest gold reserves, whose rank has remained largely consistent over recent years.
United States
The United States holds the world’s largest reserve of gold. This metal is stored at Fort Knox, an official depository operated by the Department of the Treasury and managed by U.S. Mint Police.
The vault serves as a repository for foreign central banks, governments and official international organizations on behalf of the Federal Reserve Bank of New York. Individuals are not permitted to store gold within its walls. While gold no longer backs dollars directly, many countries still maintain large bullion reserves as an emergency reserve should an economic disaster strike.
Germany
Germany and gold have long had an intricate, practical, and cultural connection. Germany’s experiences with hyperinflation and economic crises emphasize the necessity of having an incorruptible reserve asset such as gold to safeguard against future uncertainty.
That is why, beginning in 2013, the Bundesbank began repatriating its gold from New York, Paris, and London back to Frankfurt. Since gold became a Tier 1 asset class in 2016, this trend has only intensified further; geopolitically-speaking it also makes sense to keep gold close by.
France
France currently possesses over EUR125 billion worth of gold reserves, administered and stored at Banque de France’s vault La Souterraine located 27 meters underground.
France has long held gold reserves as a mark of strength and security; these assets help shield France against economic crisis.
France is home to some of the fourth-largest gold reserves worldwide and their size remains relatively steady since 2009. France does not sell their gold, unlike countries such as the US, Germany or Italy which do sell off their reserves regularly. France currently ranks fourth globally.
Peru
Peru boasts one of the world’s largest reserves of precious metals with an estimated reserve of 80,000 metric tons of gold. However, mining does come with risks.
Illegal miners are often able to circumvent taxes and labor regulations by selling their products onto the black market, where they can be laundered with paperwork that makes them appear legitimate. Eventually, their smuggled Peruvian gold arrives at foreign refineries where it is refined into jewelry or other consumer products.
By the time gold from La Rinconada makes it to a wedding band, it has likely made many trips and passed through numerous hands before becoming part of our planet’s atmosphere.
Japan
Japan has a rich mining history, yet very little gold exploration occurs today. Since 2012 when Japan Gold Corp began exploring and mining projects under an amended mining act that permitted foreign companies to explore and mine within Japan, their activity has significantly increased.
Gold reserves are an integral component of national wealth and financial security for any nation. While many keep their gold at home, others may store it abroad due to space or security considerations. Belgium and India both store theirs in Great Britain while Italy keeps its in the US.
The Netherlands
The Netherlands boasts more than 602.5 tonnes of gold – the second-highest amount held by any country in Europe after Germany. De Nederlandsche Bank (DNB), its central bank, began amassing gold during its time on the gold standard during which citizens could exchange banknotes for physical gold at DNB.
DNB recently returned some of its gold held in New York by ship to Amsterdam so as to better distribute reserves. High security reparations measures such as passport controls and scanners were in place throughout this process; video coverage showed fork-lift trucks, armed guards and thick vault doors among many other elements.
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