Which Country Has the Most Gold Reserves?
Gold has long been associated with wealth and power. Due to its limited supply and high intrinsic value, it has long been considered an investment by central banks around the world.
The United States holds more gold reserves than all of the other four nations combined, so take a look at which country holds the most through our interactive map and top 10 list below.
United States
Though no longer widely utilized, many nations continue to hold significant reserves of gold as a form of inflation protection and currency confidence booster.
One of the world’s premier gold holders, the United States is well known for storing nearly as much reserve gold as Germany and Italy combined in their national reserves at the Federal Reserve Bank of New York.
Though the United States has conducted multiple audits of its gold reserves, there remains widespread skepticism as to whether they truly hold as much as is claimed. Kentucky Senator Rand Paul recently called for an official visit of Fort Knox bullion depository to determine its accuracy.
Germany
Germany shares China and India’s affinity for gold as it forms a significant cultural relationship rooted in their histories and future economic strategies.
Germany amassed its gold reserves over several decades following World War II as it converted current account surpluses into bullion held overseas. Yet public doubt over how the Bundesbank was handling their gold abroad led to calls for greater transparency as well as speculation that some gold may have gone missing.
The Bundesbank began repatriating its gold reserves back into Frankfurt in 2013 and hopes to have half of them located there by 2020. They currently transfer 300 tons from New York and 374 from Paris.
Italy
Gold reserves are essential assets for countries to bolster financial security and peace of mind, acting as an insurance policy against currency fluctuations and potential economic shocks. Central banks also rely heavily on gold reserves as an effective hedge against currency devaluation.
Italy holds an estimated 2,451.8 tonnes of gold reserves and ranks fourth worldwide among official holders. Italy’s central bank, Bank of Italy, oversees these reserves.
According to a 2014 report by Banca d’Italia, Italy’s gold is predominantly stored at the Federal Reserve Bank of New York with smaller amounts being kept at Bank of England in London and Swiss National Bank in Berne.
France
Gold has long been seen as a reliable reserve currency, providing stability during periods of financial and political unrest. Furthermore, it serves as an effective hedge against inflation – and retains value even as other investments lose purchasing power.
France currently ranks fourth worldwide in gold reserves at 2,436 tonnes; however, it’s important to distinguish between state gold reserves and private holdings of this precious metal.
The Banque de France is responsible for overseeing and safeguarding France’s gold reserves, which are stored in La Souterraine – a vault situated 27 meters underground in Paris. These precious reserves represent France’s strength in international affairs.
Japan
Japan is home to some of the world’s most precious metals. Beginning in the mid-16th century, powerful daimyo (feudal lords) across Japan developed gold, silver and copper mines from which to mint currency known as Koshu kin.
Switzerland holds an estimated 1.04 metric tons of gold reserves and ranks seventh globally as an owner. Switzerland’s central bank, the Swiss National Bank, manages these multiple locations holdings.
Bank of India has become an enthusiastic buyer of gold over recent years, thereby fueling global demand for this yellow metal. Festivals and wedding ceremonies play a large role in creating demand, as do India’s large population base.
Cayman Islands
When it comes to storing precious metals, investors look for jurisdictions with secure environments. Cayman Islands stand out as an excellent option as they boast low political risk and strong economies while boasting stringent privacy laws that safeguard individual’s private holdings and investments.
Strategic Wealth Preservation (SWP) is a premier international precious metals dealer and secure storage provider based out of Grand Cayman in the Cayman Islands. Their Class III UL vault provides secure storage solutions, while other strategic locations provide global network storage capabilities.
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