Gold Reserves by Country 2022

The chemical element gold has the alchemical symbol, Au. Dense, supple, malleable, and ductile describe the properties of gold, which is a brilliant, reddish-yellow.

It is a valuable metal and a rare element. As one of the least reactive elements, gold is malleable, ductile, resistant to corrosion, and can transmit electricity.

As a result, it has several applications. Jewelry, coins, and other handicrafts are all made of gold. Colored glass manufacture, gold leafing, and tooth repair have all used it.

Electronic equipment’s electrical connections are corrosion-resistant because of their gold. It now costs $2,000 per ounce to buy a tonne of gold worth $64.3 million.

An economical unit of account based on the gold standard was widely utilized in both the 19th and 20th centuries, and it was a common practice at the time. Many countries that adopted the gold standard have abandoned it, although they still have substantial gold holdings.

Gold Reserves

During the gold standard period, gold reserves were used as a guarantee to pay depositors, noteholders, or trade partners who had deposited money with the central bank.

As a result of their policies, governments built reserves to cover the expenses of war and the acquisition of “treasure,” which they saw as essential to their success.

Governments place a great deal of importance on gold reserves. When inflation begins to grow, governments will acquire a large quantity of gold as a countermeasure. Furthermore, the value of a nation’s imports and exports is closely linked to that country’s currency.

The currency’s value decreases if imports outweigh exports and vice versa. Gold-exporting nations will witness a rise in the strength of their currency as a result of this. Finally, gold may devalue the money that was used to purchase it. Inflation may occur if there are many transactions conducted with gold.

Gold Reserves Worldwide

In the first quarter of 2019, the World Gold Council, a market development group for gold, estimated that the world’s gold reserves were at 34,891 tonnes.

Most of the top 10 central banks in terms of gold reserves haven’t changed much in recent years. The following 10 nations have the world’s greatest gold reserves:

1. The United States.- 8,134 tons
2. Germany – 3,364 tons
3. Italy – 2,453 tons
4. France – 2,436 tons
5. Russia – 2,299 tons
6. China – 1,948 tons
7. Switzerland – 1,040 tons
8. Japan – 765 tons
9. India – 642 tons
10. Netherlands – 612 tons

With 8,134 metric tons of gold, the United States holds the world’s highest gold reserves, surpassing Germany and Italy combined. The United States has the biggest gold holdings (76 percent) as a proportion of its foreign exchange reserves.

Fort Knox, in Kentucky, is home to the vast bulk of the country’s gold. In 2010, many central banks switched from being net sellers to purchases. For the last seven years, Russia has been the world’s greatest buyer of gold, acquiring 274 tonnes in 2018.