The World’s Largest Gold Reserves: One Country Holds as Much as Three Combined
Gold reserves play a vital role in the economic stability of a country, serving as a reliable store of value, particularly during times of financial uncertainty. The gold standard became a global norm in the late 1800s and held significant importance throughout the 1900s.
During this era, countries backed their paper currencies with gold by establishing fixed exchange rates between their currencies and specific amounts of gold. Essentially, each unit of currency issued had an equivalent value in gold, and individuals could exchange their paper money for actual gold at the predefined rate.
The demand for gold reserves is on the rise as economic instability continues to grow. Central banks once again favor gold as a safe haven asset. Gold reserves continue to play a significant role in shaping a country’s creditworthiness and overall economic standing.
According to Forbes India, based on estimates from the World Gold Council, the world’s gold reserves were ranked by country in the fourth quarter of 2023. Topping the list is the United States, holding 8,133 tons of gold with a value of $543.4 billion. Following closely behind are Germany with 3,352 tons ($224 billion), Italy with 2,451 tons ($163.8 billion), France with 2,436 tons ($162.8 billion), and Russia with 2,332 tons ($155.8 billion).
Notably, China, where the People’s Bank of China purchased the most gold last year and increased its gold reserves for 16 consecutive months until February 2024, ranks sixth on the list. China’s gold reserves reached 2,235 tons, valued at $149.3 billion.
Following China is Switzerland with 1,040 tons ($62.5 billion), Japan with 845 tons ($56.5 billion), India with 803 tons ($53.69 billion), and the Netherlands with 612 tons ($40.9 billion).
The world gold price recently reached a new record high in Thursday’s trading session, marking the strongest monthly increase in three years. This surge is driven by expectations of the US Federal Reserve cutting interest rates and the need for risk hedging. Gold prices soared to $2,233 per ounce, the highest level in history.