Which Country Has Highest Gold Reserves?

Gold is a precious metal that has served as a reliable store of value for centuries. Central banks around the world keep a large amount of gold in their vaults to combat inflation, protect currency values, and to serve as a hedge against future financial crises.

The United States leads the world in holdings, with 8,133 metric tons. Second is Germany, followed by Italy and France.

1. United States

The United States holds the world’s largest gold reserves. These massive stacks of bullion, which are measured in metric tons, are used to protect governments from hyperinflation or another economic calamity.

Governments no longer require that all their money be backed by gold, but they still store large stacks of bullion as a failsafe against inflation or another calamity.

The United States has its own stockpile of gold in a hidden vault at Fort Knox, Kentucky. It also has gold in deep storage at other locations, including the U.S. Mint facilities in Denver and West Point, New York.

2. Germany

Germany holds the second-highest gold reserves in the world. Two-thirds of its foreign reserves are held in gold.

Since 2013, the German government has been bringing half of its foreign gold back to Frankfurt, where it can be easily exchanged for pounds or dollars in a crisis.

The central bank has transferred a total of 642 tons of gold from New York to the vaults in Frankfurt. It’s also been returning gold from Paris.

3. Italy

Italy is a country in south-central Europe that borders the Mediterranean Sea and consists of many scenic landscapes. The highest points in the country are along the Alps, which stretch from Switzerland to France.

Despite its popularity, Italy’s populist government, led by Lega, is facing pressure from Brussels to reform its budget. It is considering selling some of its gold reserves to avert a budget deficit correction and a VAT increase in 2020.

But this could have serious consequences for the Bank of Italy. The European Central Bank has already warned that attempting to tax or sell Italy’s gold would undermine the Bank’s independence and break EU rules on public financing.

4. China

China, the world’s largest consumer of gold, has added 32 metric tons to its official reserves this month. This is the first reported increase in its reserves since September, according to government data released this week.

It could indicate that Beijing is diversifying its foreign holdings away from the US dollar and towards the yellow metal. This is likely in response to recent policy announcements from Chinese banking officials that may signal moves by Beijing to eventually replace the US dollar as the world’s reserve currency.

Central banks worldwide boosted their official gold reserves in November, according to the World Gold Council. Turkey, Uzbekistan and India were among the top buyers.

5. India

The Reserve Bank of India has crossed the 100-tonne mark and is positioned as one of the top 10 countries with highest gold reserves. It is an important asset for nations worldwide because it serves as an insurance against inflation and economic downturns.

During periods of economic uncertainty, gold prices are expected to rise. This is because the yellow metal is a good hedge against inflation and the value of currencies is often affected by inflationary factors.

6. Switzerland

Switzerland is home to the seventh-largest central bank gold reserves in the world. The Swiss National Bank has 1,040 metric tons of gold in its vaults.

With 920 tonnes in private gold, the Swiss have likely the highest amount of the precious metal per capita.

The Swiss have a strong tradition of saving and investing in gold. The country also has the largest refining capacity for the precious metal in the world.

Despite its relatively small size, Switzerland has a reputation for high living standards and a peaceful culture. It is also a top destination for alpine skiing and mountaineering.

7. Mexico

Mexico has one of the world’s largest gold reserves. It has been mined for thousands of years and traces of gold have been found throughout the country.

It is no wonder that gold has been such an important part of Mexican culture. This metal was used by the Aztecs and the Mayans and is still used today in many of their architectural designs and artifacts.

In recent times, Mexico has faced a range of domestic challenges including poverty, income inequality and violent crime. It has also seen a rise in drug violence, which is having a negative impact on its economy.