If you’ve been following the news, you’ll have seen that Russia’s gold reserves topped $200 billion for the first time in October 2024. This was only the latest significant change in the gold industry; With numerous conflicts occurring around the world, subsequent international sanctions and economic uncertainty, countries are increasing their gold reserves.
Many countries have large reserves gold as part of the assets of their central banks, providing protection from currency fluctuations, foreign exchange rates and economic changes. It’s no surprise that the United States has the largest gold reserves in the world, but some countries with other large reserves may surprise you.
Why do countries need gold reserves?
In the past, countries backed their currencies with gold; every dollar or monetary unit in circulation had a corresponding value in gold. As a result, gold reserves turned out to be critical.
The so-called gold standard is no longer valid and the currency is no longer supported precious metal. However, many countries still maintain and increase their gold reserves. Having a gold reserve provides some protection during economic fluctuations and influences how other countries view the country in terms of reliability and creditworthiness.
During periods of unrest or uncertainty, countries often increase their gold reserves to preserve their wealth. This has been the case for the past few years.
5 Countries with the Largest Gold Reserves as of 2024
Countries with the most significant gold reserves tend to be the world’s major powers. As of November 2024, the countries with the largest gold reserves are:
1. USA
Book: 8,133 tons
The United States is an economic superpower, so it is not surprising that it leads the world in gold reserves, holding approximately 72% of the world’s gold reserves. His gold is stored in two main locations: Fort Knox, Kentucky, and the Federal Reserve Bank of New York.
Although its reserves have remained virtually unchanged since 2005, the US gold reserve is still several times larger than that of other countries. Thanks to its huge gold reserves, the US dollar is considered one of the most stable currencies and has helped shape the perception of the US as a financially secure country.
2. Germany
Book: 3352 tons
It may be surprising to see Germany in second place, but it is one of the world’s largest economies by gross domestic product (GDP), ranking third behind the United States and China.
Germany began building up its gold reserves after World War II and has maintained its position as the second largest holder of gold reserves for decades. It stores its 2,252 tons of gold in four key locations around the world: Deutsche Bundesbank in Germany, Frankfurt am Main in Germany, Federal Reserve Bank of New York in the US, Bank of England in London and Bank of France in Paris. .
3. Italy
Book: 2452 tons
Italy is not among the leading economies in terms of GDP and ranks eighth in the world. However, the country has the third largest gold reserves in the world.
Like Germany, Italy began building its gold reserves after World War II. It’s stable bought gold during the 1990s and has since stored approximately 2,400 tons of the precious metal. To protect its assets, the Italian government stores its gold reserves in several locations around the world. In addition to its own central bank, Italy also stores its gold in banks in the UK, US and Switzerland.
4. France
Book: 2437 tons
France has the fourth largest gold reserves in the world, holding more gold than many other major economic powers. The country’s gold reserves have not changed since 2009 and amount to 2,437 tons.
Most of France’s gold was purchased immediately after World War II, as France sought to rebuild its economy after the war. He stores his assets in the famous La Souterraine underground vault of the Bank of France in Paris.
5. Russia
Book: 2336 tons
International gold reserves are generally stable, and the rankings of countries with the largest reserves rarely change. However, this trend is changing: Russia recently overtook China, despite China’s penchant for goldto become the world’s fifth largest gold reserve. Russia has amassed more than 2,336 tons of gold—or $200 billion worth of the precious metal—overtaking China’s gold reserves of 2,264 tons.
Russia quickly increased its gold reserves after invading Ukraine on February 24, 2022. As the country faced economic sanctions from governments around the world, it increased its gold reserves to protect against economic pressure and instability. However, the US dollar to Russian ruble exchange rate reached an all-time high of US$1 to RUB 126.40 in March 2022, and the country’s inflation rate rose to 17.8% in April 2022.
Gold Reserve: Frequently Asked Questions
How much gold is in the US reserve?
The US maintains 8,133 gold reserves. Its gold reserves are valued at more than $600 billion, making it the largest holding in the world.
How are gold reserves stored?
The method of storing gold reserves varies by country. Some countries, such as the US, store all their gold in their own domestic vaults, while others store it in multiple locations around the world. For example, Italy stores its gold in several different countries, including the United States and Switzerland.
Why do some countries buy more gold?
Countries maintain and increase their gold reserves for several reasons, namely economic security and strategy. Building up the gold reserve provides some protection against inflation and currency devaluation. Creating a gold reserve also provides protection from foreign economic powers and reduces dependence on other currencies.
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