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Top 10 countries with the world's largest gold reserves

The infographic below includes the 10 countries with the largest gold reserves at central banks, based on data from the World Gold Council (WGC) as of May 2024... Gold prices have increased about 20% since the beginning of the year amid increased buying by major central banks as well as high demand in China. In addition, growing interest in haven assets such as gold due to geopolitical instability is also the reason why the price of this metal increased sharply. The infographic below includes the 10 countries with the largest gold reserves at central banks, based on data from the World Gold Council (WGC) as of May 2024.

1. US

Official gold holdings: 8,133.5 tons
Percentage of gold in foreign exchange reserves: 78.9%

According to the World Gold Council (WGC), as of July 2020, countries held about 34,900 tons of gold. This amount of gold is used to stabilize domestic currencies against the risk of hyperinflation, especially in major crises like the current one. However, very few countries have large gold reserves. In fact, about 80% of the world's gold reserves are currently held by central banks and finance ministries of 25 countries.

With gold reserves of up to 8,133.5 tons, the amount of gold held by the US is more than twice that of Germany and nearly eight times that of China. However, this is not the most impressive number. In 1952, this country had gold reserves of up to 20,663 tons. It was not until 1968 that the figure first fell below 10,000 tonnes. The US also has the world's highest proportion of gold in its foreign exchange reserves, about half of which is currently stored at Fort Knox.
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2. Germany

Official gold holdings: 3,363.6 tonnes
Percentage of gold in foreign exchange reserves: 75.2%

"After the Eurozone crisis, many Germans wanted to know the details of the 3,363.6 tonnes of gold held in the country and questioned whether these gold reserves really existed. This forced the Bundesbank to recently publish a long list of gold bars in its reserves." As the largest economy in the European Union (EU), Germany naturally holds a large amount of gold reserves to support its market. In fact, the German government has been hoarding gold since World War II due to fear of economic impacts on the domestic currency, which happened before in pre-war crises.

During the Cold War, Germany dispersed its gold reserves to many places such as the US and UK under pressure from the Soviet Union. However, about half of the country's gold reserves have now been gradually transferred to Frankfurt. Germany has restored more than 200 tons of gold to Frankfurt in 2015. During the period 2012 - 2017, Germany repatriated a huge amount of gold reserves, about 700 tons, from Paris and New York to Frankfurt. This has made this country the second largest gold reserve country in the world. As the economic locomotive of Europe, Germany has always maintained a very large gold reserve. Although it has sold 4.7 tons of gold since September 2011, its gold reserves are still the second largest in the world.
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3. Italy

Official gold: 2,451.8 tonnes
Percentage of gold in foreign exchange reserves: 70.8%

Historically and for psychological reasons, gold is increasingly important as a component of central bank reserves. Bank Governor Salvatore Rossi has said that gold is a solid foundation for central bank independence as the ultimate guarantee of financial stability in the country. The gold is currently held in vaults in Rome, the Swiss National Bank, the US Federal Reserve and the Bank of England. Despite its financial difficulties, the Italian government has no intention of selling its gold reserves.

Despite the economic difficulties caused by the sovereign debt crisis, Italy still has the third largest gold reserves in the world. The Bank of Italy believes that gold reserves are the key to independence and freedom. Unlike most countries in the world where the gold in foreign exchange reserves is owned by the government and managed by the central bank, in Italy, the gold reserves belong to the Banca d’Italia. The country’s gold is stored in many vaults around the world, from Rome to the vaults of the Swiss National Bank, the New York branch of the Federal Reserve (FED) or even the Bank of England. During the financial crisis, the Italian government never sold a single gram of gold despite its huge reserves.
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4. France

Official gold holdings: 2,436 tonnes
Percentage of gold in foreign exchange reserves: 65%

The bulk of France's gold reserves were accumulated in the 1950s and 1960s. The economic powerhouse sold several hundred tonnes of gold at the start of the 21st century due to the economic crisis, but the majority of France's gold reserves have remained fairly stable since 2009. The fact that the French central bank has sold some of its gold reserves has prompted calls for a halt. Marine Le Pen, president of the French National Front, has led calls for the central bank to not only stop selling gold but also repatriate all of its gold from abroad.

In October 2014, French leader Marine Le Pen wrote that "she wants France's gold to come back to the country and that the central bank should hold more gold". Most of this gold was purchased by France in the 1950s and 1960s and is kept in the vaults of the Banque de France. In recent years, the central bank has hardly sold any gold. Although it sold 572 tons of gold between 2004 and 2009, France still has a very large gold reserve of 2,436 tons, accounting for 65% of its foreign exchange reserves. During the period from 2009 to 2014, the country affirmed that it had no plans to sell any of its gold reserves.
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5. Russia

Official gold holdings: 2,299.2 tonnes
Percentage of gold in foreign exchange reserves: 22.6%

According to RT, Russia's international reserves have increased to $2.7 billion, an increase of 0.5% compared to June. This figure is also up more than $50 billion since July 2019. Russia's international reserves are highly liquid assets including gold stocks, foreign currencies and Special Drawing Rights (SDR) assets at the disposal of the Central Bank and the Russian government. The current reserve level is higher than the $500 billion target set by the Central Bank of Russia a few years ago. Notably, Russia's gold and foreign exchange reserves have increased for four consecutive years. Russia is also reshaping its international reserves by cutting the share of the US dollar to prioritize gold reserves and other currencies.

The Russian central bank has been buying large amounts of gold over the past seven years. In 2017 alone, it bought more than 200 tonnes of gold to reduce its dependence on the US dollar, as relations between Russia and the West deteriorated after Russia's annexation of Crimea in 2014. Since 2006, Russia has been increasing its gold reserves to diversify its foreign exchange reserves and to help strengthen the ruble. The central bank has traditionally bought gold from the domestic market and has increased its purchases since September 2018. Russia also has a multibillion-dollar gold mining industry, which helps reduce its dependence on gold imports.
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6. China

Official gold holdings: 1,948.3 tonnes
Percentage of gold in foreign exchange reserves: 3.4%

China is currently the world's largest gold producer, accounting for 12% of the world's total gold production. The country is also the world's largest gold consumer. China's demand for gold has increased sharply in recent years due to its increasingly wealthy middle class. According to data released by the State Administration of Foreign Exchange, as of the end of June 2020, the country's total foreign exchange reserves reached 3,112 billion USD. Proportion of gold in foreign exchange reserves: 3.4%. Despite having an estimated foreign exchange reserve of up to 3,200 billion USD, gold still accounts for a very small proportion of China's foreign exchange reserves. Normally, this proportion in average countries is around 10%. According to the Financial Times, Beijing is looking to increase its gold reserves to enhance the status of the yuan.

Since returning to net gold purchases in December 2018, China has been steadily importing gold, and has now added 100 tonnes of gold to its national reserves. The People's Bank of China (PBOC) has become one of the world's largest central banks importing gold. While many countries store their gold reserves in the underground vaults of the US Federal Reserve (FED), all of China's gold reserves are stored domestically. And in the context of continuously rising gold prices, some countries are also "repatriating" gold reserves stored abroad.
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7. Switzerland

Official gold: 1,040.0 tons
Percentage of gold in foreign exchange reserves: 6.5%

In the periods before 1999, the country held up to 2,590 tons before selling them. It is estimated that the sale of thousands of tons of gold caused the country to suffer a loss of more than 50 billion USD. The populist UDC party believes that in the early 2000s, the Berne government sold part of its gold reserves at a price only 1/3 of the current price. Therefore, this party demands that the people's opinion be taken to collect all Swiss gold from everywhere and bring it back to the country. This party also demands that the Central Bank must always have in storage, on Swiss soil, at least an amount of gold equivalent to 20% of the bank's reserves, which is double the current amount. However, this was rejected by the Swiss government.

Although Switzerland ranks seventh in total reserves, it has the world's largest gold reserves per capita. It trades gold primarily with Hong Kong and China. In 2014, the government voted to increase its gold reserves from 7 percent of its foreign exchange reserves to 20 percent. However, 78 percent of voters opposed the plan, saying it would further strengthen the Swiss franc, which would hurt exports. With 1,040.0 tons of gold, Switzerland ranks seventh among countries with the world's largest gold reserves.
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8. Japan

Official gold holdings: 765.2 tonnes
Percentage of gold in foreign exchange reserves: 3.1%

Japan's gold holdings in the 1950s were only around 6 tonnes. The official change was recorded in 1959 with an additional purchase of 169 tonnes compared to the previous year. In 2011, the Bank of Japan sold a large amount of gold to pump 20 trillion yen into the economy to help investors stay calm and stable after the tsunami and nuclear disaster. The Bank of Japan has been one of the most active monetary easing agencies in recent years. In 2016, the agency cut interest rates below 0%, driving up demand for gold.

As the third largest economy in the world, Japan has launched many economic stimulus packages to support businesses and people after the Covid-19 pandemic. The series of bailouts will affect the inflation rate as well as the price of the Yen, thereby causing investors to buy more gold as a safe haven. Japan also has gold mines but only small quantities have been mined for decades, and with recent economic fluctuations, the country is actively buying this precious metal to prepare for risks.
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9. India

Official gold holdings: 654.9 tonnes
Percentage of gold in foreign exchange reserves: 7.5%

In the first half of 2020, the world gold price increased by 16.8% and surpassed all other major assets to become one of the most profitable investment channels. As of July 23, 2020, the price of gold reached nearly $ 1,900 / ounce, the highest level since 2012. In October last year, Prime Minister Narendra Modi announced that he wanted to "exploit the precious metal reserves to reduce physical demand and limit imports by providing alternative investment routes". Most of the gold they need is imported. The country's festivals and wedding season are always lucrative business times for gold companies. In the past two years, India has bought more than 70 tonnes of gold despite having very few operating gold mines. Most of India's gold is currently imported from abroad, mainly to meet the jewelry needs and reserve assets of households rather than keeping it in foreign exchange reserves.

India is currently the second largest consumer of gold in the world and is one of the key factors affecting the price of this asset. The central bank of India has long regularly bought gold from the International Monetary Fund (IMF) whenever the organization sells it and considers it a safe investment channel. However, New Delhi is very secretive about its gold purchase plans. In the country's 12th five-year development plan, India plans to develop 33 new mines across the country by speeding up the process of granting gold mining licenses compared to the current one.
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10. Netherlands

Official gold holdings: 612.5 tonnes
Percentage of gold in foreign exchange reserves: 7.5%

In times of turmoil, gold is the most popular asset for investors. Even central banks around the world bought up to 650 tonnes of gold for reserves last year. In fact, gold has the ability to withstand political and economic fluctuations without losing value, and can be quickly converted into cash if necessary.

The Dutch central bank said it could move more than 189 tonnes of gold (worth over $7 billion) from its Amsterdam vaults. In 2019, the Dutch central bank (DNB) said gold is a symbol of trust and a safe anchor for the financial system to prepare for the worst-case scenarios in the economy. In 1999, the Netherlands announced that it would sell 300 tons of gold over the next five years, but in the end it only sold 235 tons. Then, in the period 2004-2009, the country continued to affirm that it wanted to sell an additional 165 tons of gold. However, according to the plan for the period 2009-2014, Amsterdam affirmed that it would stop selling.
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