Gold continues to be an important indicator and store of value in the modern era, serving as a hedge and retaining its value even during times of economic crisis. With that in mind, here are the top 10 countries by gold reserves as of September 2023, based on data from central banks, the Federal Reserve Bank of St. Louis, the International Monetary Fund, the World Bank, and the World Gold Council.
Gold hit a new record in December of last year during challenging times. There was uncertainty both geopolitically and regarding interest rates, proving once again that the metal is extremely important in the global economic context.
The majority of the world’s gold is stored in several places, including central bank vaults, private depositories, and jewelry holdings. Nations around the world hold gold reserves for a number of reasons.
Firstly, gold is a stable and dependable store of value, signaling a country’s economic stability, particularly in times of financial uncertainty. Secondly, despite the gold standard having lost some relevance, a few countries still regard gold reserves as crucial for maintaining currency stability. Furthermore, gold’s tangibility allows nations to diversify their overall portfolio. Almost one-fifth of all the gold ever mined is currently held in storage by central banks.
Top 10 countries with largest gold reserves
At the top of the list of countries with the largest gold reserves is the US, which has 8,133 tons stored away in twelve federal reserve banks across the county.
In second place is Germany, with 3,353 tons in its gold reserves, followed by Italy, which has holdings of 2,452 tons. France has taken the fourth spot with 2,437 tons, and Russia is fifth with 2,333 tons. China has the sixth largest gold reserves with 2,192 tons while Switzerland possesses 1,040 tons of gold and the seventh largest gold reserves in the world.
With 847 tons, Japan has the eighth largest gold reserves, while India, with its 801 tons places ninth. The Netherlands has 612 tons, meaning it is tenth among the top 10 countries with the largest gold reserves. Turkey has 479 tons, putting it in eleventh place.
Experts often discuss the concept of “peak gold,” which refers to the time period within a given year when humans are said to have mined the greatest possible amount of gold ever. Some believe that point may have already been reached. Gold mine production totaled 3,531 tons in 2019, which was one percent lower than in 2018, according to the World Gold Council. This represents the first annual decline since 2008.
“While the growth in mine supply may slow or decline slightly in the coming years, as existing reserves are exhausted, and new major discoveries become increasingly rare, suggesting that production has peaked may still be a little premature,” Hannah Brandstaetter, a spokesperson for the World Gold Council, told the BBC in 2020.