Top 15 Countries With The Largest Gold Reserves

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Gold is one of the most valuable precious metals in the world due to its special physical properties, its rarity and its particular color and luster. This precious metal can be used as an investment and means of payment.

Only 3% of the yearly production of gold produced is processed into gold bars and gold coins (80% is processed into jewelry). In this form, it can then be used as a means of investment and payment. Dating back from the 6th century, Gold in form of coins was used as a direct means of payment, however, gold is hardly used today.

For this purpose, cash gold nowadays has a very high significance in terms of international financial policy. Every state bank in the world hoards a certain amount of gold which is stored in their vaults as Gold reserves for the state. Which can be used as foreign currency in times of serious economic fluctuations, so that state liquidity can continue to be guaranteed. In general, gold enjoys great popularity as investment capital, especially in times of financial instability. In contrast to currencies, gold is regarded as relatively stable in value, thus ensuring that people who have it in their possession retain value for their own savings. However, the price of gold is often exposed to high price fluctuations on the stock exchange and thus still carries certain risks as an investment.

Ranking

The ranking of the countries that own the largest amount of noble yellow metal is compiled on the basis of the official data of the World Gold Council. In this top list, in addition to states, there is an international organization (IMF).

Function Of The Gold Reserves

The gold reserves ensure that a country remains solvent even in times of crisis. Even if the currency of a country would lose very much in value, the gold reserves can avoid a complete insolvency of the country. Gold is accepted as a neutral currency worldwide. Other precious metals such as silver or platinum could never reach the status of gold as a hedge. Even new approaches to an independent currency (such as the Bitcoin)are so far ridiculed and not considered as a real alternative to gold. Below is the list of top 15 countries with the largest Gold reserves based on World Gold Council report June 2018.

15th: Saudi Arabia

The Kingdom of Saudi Arabia occupies 15th place in this ranking. The country stores 322.9 tons of gold.

14th: Portugal

Portugal has gold reserves of 382.5 tons. These had been accumulated by the former Portuguese dictator Antonio de Oliveira Salazar.

13th: Taiwan

Taiwan is ranked twelfth in the ranking. The East Asian state of Taiwan currently has a gold stock of 422.7 tons.

12th: ECB

Established in 1998 with the aim of helping manage the financial integration of member states. The member countries transferred foreign reserve assets to the union. The European Central Bank as of date has 504.8 tons of gold in its reserves.

11th: India

India added 2.5 tons to gold to its reserves this year and now have 560.3 tons of gold, ranking 11th on this list.

10th: Netherlands

In 2000 Netherlands had in its possession 911.82 tons of gold but today is ranked 10th in this list with 612.5 tons of gold.

9th: Japan

Because of the shaky economy and distrust of investors caused by cataclysms, part of the state gold was put up for sale. Because of this, Japan lost a couple of positions in the rating of the owners of this noble metal but managed to hold on to the brink of dozens. The country of the rising sun owns 765.2 tons.

8th: Switzerland

If you remember that there are no minerals in this country, such a large reserve is surprising. But if you consider that we are talking about a country with the most reliable banks, another question arises: "Is not that enough?"
However, we are talking about the state stock, which totals 1,040.1 tons. The total volume of gold in the Swiss depositories can only be hypothesized. Numerous banks keep sacred the secrets about deposits.

7th: China

For the past several years, China has been a recognized leader in gold mining every year, their mines are given up to a mountain of over 300 tons. But the government of this country does not always immediately attach this metal to its fund. In the general reserve, its share is insignificant: 1.6%. In mass terms, this is about 1,054.1 tons.

6th: Russia

Compared with the previous ratings, the Russian Federation dropped by one position. At the same time, it continues to be the leader in the extraction of precious minerals. Annually, the mountain produces about 6% of the world's volume. They have a Gold stock of about 883.3 tons.

5th: France

The custodian of stocks is the French National Bank. It manages 2435.4 tons of gold. Over the past year, the treasury lost 249 tons. But its share in the general reserve increased from 67.2 to 71.1%.

4th: Italy

Gold in the general fund of the country occupies the most part. As a percentage, it totals 71.0%. And this indicator is gradually increasing. Compared with last year's data, it grew by 2.4%. In this way, Italy is carrying out the previously developed policy of strengthening its balance sheets. The entire reserve of the state weighs 2451.8 tons.

3rd: IMF

For a long time, the reserves of the largest international financial organization remained inviolable. However, recent turmoil in the financial markets of many countries forced the International Monetary Fund to print out its depositories.

In 2009, eighth of the gold bullion in their possession was sold. The proceeds were provided to poor countries that do not have the ability to pay off foreign debt. To date, the influential organization owns 2,814.0 tons of this precious metal.

2nd: Germany

The German national bank, called the Bundesbank, announced for the data of the World Gold Organization a figure of 3,396.3 tons. Over the year, the state's reserve grew, as did its share in the gold and foreign exchange reserves (71.4%). This indicator has denied Germany's accusations of trying to strengthen its European financial stability fund with its gold. In the world rating, the country already holds the second position for a year.

1st: United States Of America

If we recall that only in the first five years of the famous Gold Rush in California, about 370 tons of metal were mined, it is easy to explain the dominant position of the country in this ranking. The share of gold in their reserves is dominant. It is about 74.5%. In the mass equivalent, this is 8,133.5 tons.

It is quite natural that this country holds the largest depository of gold in the world. It belongs to the Federal Reserve. But in fact, the reserves are controlled by the Congress of the United States. In particular, without its resolution, it is impossible to decide on the sale of gold.

Despite the impressive figures, this is only a small fraction of all ground gold. It is difficult to imagine, but the total reserve of states is only 19% of what has already been extracted. The rest belongs to private individuals, gold exchange funds, and other organizations.

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