15 December 2014

Countries With the Largest Gold Reserves

We recently posted an article about Central Bank Gold trends to highlight some bullish factors that we see happening in the market. So for CelticGold readers who are interested, in this article we will focus on taking a look at the countries with the largest Gold reserves. 

In a global economy where currency wars are likely going to heat up in the future it is no wonder that Central Banks have been net buyers of Gold. In most developed countries inflation has not yet become a major problem. As a result, Central Banks may be looking at Gold as a protection should the Dollar loose its reserve currency status, or if extreme volatility hits the currency markets. 

The Top 10 

1. United States

Holds 8,133.5 tones of gold, representing approximately 70.9% of its foreign reserves.

2. Germany

The country currently has 3,384.2 tones of gold, which accounts for about 66.0% of total foreign reserves.

3. Italy

Holds 2,451.8 tones of Gold representing about 65.4% of foreign reserves.

4. France

France currently holds 2,435.4 tones of gold, representing about 63.6% of its total foreign reserves.

5. Russia

Russia holds 1,168.7 tones of Gold. This accounts for approximately 10.2% of the country’s foreign reserves. 

6. China

China has 1,054.1 tones of Gold, which is about 1% of its reserves.

7. Switzerland

The country currently has 1,040 tones of gold, accounting for about 7.4% of its foreign reserves.

8. Japan

Japan’s gold reserves are 765.2 tones, which is approximately 2.3% of its reserves.

9. Netherlands

The Netherlands has 612.5 tones of Gold, accounting for about 53.2% of its foreign reserves. 

10. India

India currently holds 557.7 tones of gold, representing approximately 6.6% of its reserves

(Source: World Gold Council December 2014)

When looking at the data in more detail, it is interesting to point out how much Gold the top 4 countries have as a percentage of their foreign reserves. The US, Germany, Italy and France all have over 60% of their foreign reserves in Gold. 

While it is pure speculation on our part, these countries likely have more Gold than any other foreign currency in terms of value. This says a lot about the importance placed on Gold and why countries hold it over long periods of time.

As we have written, China and other countries in the East have been large consumers and importers of Gold. The physical Gold market is not real transparent and therefore no one really knows for sure how much Gold China holds. Some estimate that it is much higher than the numbers above. In addition, it looks as though Chinese Gold demand is still growing.

Gold is truly one of the only global currencies on the planet that offers stability and real value. This is one of the main reasons we own it.

Author: celticgold.eu

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