I read about CNBC’s report “The World’s Biggest Gold Reserves“.
It was reported that “The biggest individual holders of gold—central banks, international entities and governments—are believed to account for approximately 16.5 percent of the world’s gold, holding about 30,160 tons.” CNBC in turn got the figures from World Gold Council.
I was pretty surprised by some of the countries listed as the biggest holders of gold.
- United States (8,965.6 tonnes)
- Germany (3,747.9 tonnes, 71.7% of foreign reserves)
- International Monetary Fund (3,101.3 tonnes)
- Italy (2,701.9 tonnes, 71.4% of foreign reserves)
- France (2,683.8 tonnes, 66.1% of foreign reserves)
- China (1,161.6 tonnes, 1.6% of foreign reserves)
- Switzerland (1,146.2 tonnes, 17.6% of foreign reserves)
- Russia (915.2 tonnes, 7.8% of foreign reserves)
- Japan (843.3 tonnes, 3.3% of foreign reserves)
- Holland (674.9 tonnes, 59.4% of foreign reserves)
- India (614.6 tonnes, 8.7% of foreign reserves)
- European Central Bank (553.3 tonnes, 31.3% of foreign reserves)
- Taiwan (466.8 tonnes, 4.6% of foreign reserves)
- Portugal (421.5 tonnes, 84.8% of foreign reserves)
- Venezuela (403.1 tonnes, 64.8% of foreign reserves)
As USD and EUR deteriorating in value, it makes sense to own a reasonable amount of gold to preserve wealth. Italy and Portugal were under scrutiny as they are potentially the next countries to default. I must say at least they have majority of their foreign reserves in gold and in the event that they really need to pay their debts, at least their valuable gold can use to tide them through the tough times and minimise the impact to Euro zone. Hence, I think Spain is a bigger problem.
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