Gold reserves are a key financial asset held by central banks and governments world over. These reserves serve multiple purposes, primarily acting as a form of currency stabilization instrument and providing security during periods of economic uncertainty. US, Germant and Italy hold the highest gold reserves globally. India in comparison is at the 7th position belwo China. However, the domestic consumption of gold does not play a role in the ranking of countries with highest gold reserve.
Historically, the gold standard system tied the value of national currencies to a fixed amount of gold, which required countries to maintain large gold reserves to support their money supply. The United States, for instance, began accumulating substantial gold reserves in the late 19th century, and the Gold Reserve Act of 1934 in US solidified this strategy by transferring gold ownership from private individuals to the US Treasury. As of today, the US holds the largest gold reserves globally, amply explaining its economic power and influence globally.
Also ReadCrude Oil Prices inch higher ahead of Christmas; check petrol, diesel rates today on December 24 in Mumbai, Chennai, Bangalore, Hyderabad and Guwahati
Countries with the Highest Gold Reserves
The World Gold Council reports the latest data on the global gold reserves, highlighting the top 10 nations with the largest gold holdings. These countries hold considerable amounts of gold, which plays a crucial role in their financial stability and influences global markets.
- United States
The United States leads with a staggering 8,133.46 tonnes of gold reserves, valued at approximately $687.7 billion. This accounts for 74.16 per cent of the country’s total reserves. Gold reserves in the US are stored across several locations, including Fort Knox and the West Point Bullion Depository.
- Germany
Germany holds 3,351.53 tonnes of gold reserves, valued at $283.39 billion, which constitutes 73.54 per cent of its total reserves. These reserves are strategically stored in locations such as New York, London, and Frankfurt.
- Italy
Italy’s 2,451.84 tonnes of gold, worth $207.32 billion, account for 70.26 per cent of its total reserves. Managed by the Banca d’Italia, these reserves provide a financial buffer against inflation and market volatility, contributing to Italy’s financial stability within the Eurozone.
- France
France ranks fourth with 2,436.94 tonnes of gold reserves,
» Read More
