Who accumulates gold and why? World ranking of the largest gold holding countries.


Governments are actively increasing their gold reserves. Experts are sure that if the current rate of mine supply continues, then the reserves of gold in the bowels of the Earth will be exhausted by 2034.

The amount of gold in different countries is monitored by the World Gold Council. It analyzes what countries are buying gold, and in what quantities.

In recent years, countries’ appetite for gold has increased significantly. They not only actively buy, but also take their gold back from international banks and vaults.

Gold is almost the only stable financial instrument. People see it as a defensive asset that is not subject to inflation and provides stability as it is not affected by political changes or economic shocks. Gold tends to trade like a bond, and governments accumulate it in preparation for financial instability. Now about 30% of all reserves in developed countries are stored in gold.

We all understand that gold can always be exchanged for cash. One ton of gold is worth approximately $ 40.2 million, and the total value of all gold ever mined is now approaching $ 8 trillion.

Goldman Sachs, one of the world's largest investment banks, predicts that in the coming years, global gold production will begin to decline, and by 2022 production will fall to the level that was at the beginning of this century. Another prediction that stimulates the hunt for gold was made by the US Geological Survey, which believes that if the rate of production remains at current levels, the reserves of gold in the bowels of the Earth will be exhausted by 2034.

American financial market expert Keith Neumeyer said that when the world's governments need to get rid of their debts, they will tie everything to the price of gold, and we’ll witness a global reboot. "This is why countries are accumulating gold - they know what could happen in a few years.

TOP-10 countries that have the largest gold reserves

Which country has accumulated the most? GoldHub has ranked countries with the largest gold reserves. Here are the TOP-10 of the wealthiest.

The first place belongs to the USA with 8133.46 tons of gold bars. The country that possesses the most gold in the world. This is almost the same as Germany, Italy and France together. Most of this gold is believed to be held in the US Bullion Depository, often known as Fort Knox.

Germany is in second place with 3359.12 tons. While part of the country was under Soviet control, its gold reserves were stored around the world. In the period from 2013 to 2017, at least half of these reserves was brought back to Frankfurt.

The third place belongs to Italy with 2451.84 tons. Unlike most countries where gold reserves are owned by the state and managed by their central banks, Italy's gold is actually owned by Banca d'Italia, and stored in vaults in Rome, the Swiss National Bank and the Federal Reserve Bank in the United States. In February 2019, the Italian government announced it "will not sell a single ounce" of gold reserves to fill budget holes.

The fourth place belongs to France, which has accumulated 2436.32 tons. Most of this gold is said to be stored in vaults at the Bank of France in Paris. Reserves have remained stable since 2009.

The fifth place in this rating belongs to Russia with 2292.31 tons. In recent years, the country has increased its gold reserves, which has allowed it to outrank China and reduce its dependence on the US dollar. It also has its own gold mining industry with a billion dollars turnover, which means that this metal-rich country doesn't need to rely on imports.

China comes in sixth place with 1,948.31 tons. It is also the largest gold producer in the world. According to an investment manager of US Global Investors, the country accounted for around 12% of global gold production.

Switzerland is seventh with 1,040 tons. In 2014, a referendum was held on whether the Swiss National Bank (SNB) should increase its gold holdings from 7% to 20%. The status quo prevailed.

Japan is eighth with 845.97 tons of gold reserves. In this country, recent prospecting for gold has been successful and Japan now hopes to develop these reserves.

India is ranked ninth with 703.71 tons. India's gold reserves have increased by over 95 tons over the past few years. Having a small gold mining industry, it cannot meet national demand, and most of its yellow metal is purchased from abroad. India is another country to buy gold in 2021 as most countries continued to sell gold amid the COVID-19 crisis.

The Netherlands is tenth with 612.45 ton. A significant part of its reserves is stored in the country, in the cash center of Zeist.

For Central Banks, gold is primarily the most reliable asset, which is unlikely to fall in value. In the future, analysts predict that volumes of gold purchases by Central Banks will triple by 2023. Therefore, it is worth considering this strategy for private investors. Central banks set the course for the economy. Why don't we follow this?

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