In case you’ve been following the news, you have seen that Russia’s gold reserves exceeded $200 billion for the primary time in October 2024. That was just the most recent significant change within the gold industry; with multiple conflicts occurring across the globe, subsequent international sanctions and economic uncertainty, countries are shoring up their gold reserves.
Many countries hold large reserves of gold as a part of their central banks’ assets, providing protection against currency fluctuations, foreign exchange valuations and economic changes. Unsurprisingly, the U.S. has the biggest gold reserve on this planet, but among the countries with other large reserves may surprise you.
Why do countries have gold reserves?
Previously, countries secured their currencies with gold; every dollar or unit of currency in circulation had a corresponding value in gold stored. Because of this, gold reserves were critical.
The so-called gold standard is not any longer in operation and currency is not any longer backed by the precious metal. Nevertheless, many countries still maintain and grow gold reserves. Having a gold reserve provides some protection during economic fluctuations, and it impacts how other countries view the nation when it comes to reliability and creditworthiness.
During times of unrest or uncertainty, countries often add to their gold reserves to preserve their wealth. Such has been the case over the past few years.
5 countries with the biggest gold reserves for 2024
The countries with probably the most substantial gold reserves are inclined to be major world powers. As of November 2024, the countries with largest gold reserves are as follows:
1. U.S.
Reserve: 8,133 tons
America is an economic superpower, so it’s no surprise that it leads the world when it comes to gold reserves with roughly 72% of the world’s gold holdings. Its gold is stored in two major locations: Fort Knox, Kentucky, and the Federal Reserve Bank of Recent York.
Although its holdings have remained mostly unchanged since 2005, the U.S. gold reserve remains to be several times larger than that of other countries. With its massive gold reserve, the U.S. dollar is viewed as some of the stable currencies and has helped shape the view of the U.S. as a financially secure country.
2. Germany
Reserve: 3,352 tons
It might be surprising to see Germany in second place, however it’s one among the biggest economies on this planet based on its gross domestic product (GDP), rating third behind the U.S. and China.
Germany began constructing its gold reserve post-World War II and has maintained its position because the second-largest gold reserve holder for a long time. It stores its 2,252 tons of gold at 4 key locations across the globe: Deutsche Bundesbank in Germany, Frankfurt am Predominant in Germany, the Federal Reserve Bank of Recent York within the U.S., the Bank of England in London and the Banque de France in Paris.
3. Italy
Reserve: 2,452 tons
Italy is not one among the highest economies based on GDP, rating eighth globally. Yet the country holds the third-largest gold reserve on this planet.
Just like Germany, Italy began constructing its gold stores within the wake of World War II. It steadily bought gold through the Nineteen Nineties and has maintained roughly 2,400 tons of the dear metal ever since. To guard its holdings, Italy’s government stores its gold reserves in several locations across the globe. Besides its own central bank, Italy also stores its gold with banks within the U.K., the U.S. and Switzerland.
4. France
Reserve: 2,437 tons
France has the fourth-largest gold reserve on this planet, holding more gold than many other larger economic powers. The country’s gold reserve has been unchanged since 2009, holding 2,437 tons.
Much of France’s gold was purchased immediately after World War II because it looked to rebuild its economy after the war. It stores its holdings within the Banque de France’s famous La Souterraine, an underground vault in Paris.
5. Russia
Reserve: 2,336 tons
International gold reserves are often regular, and the rankings of the countries with the biggest reserves rarely change. Nevertheless, that trend has been changing, as Russia recently overtook China, despite China’s affinity for gold, to grow to be the fifth-largest gold reserve on this planet. Russia has gathered greater than 2,336 tons of gold — or $200 billion price of the dear metal — edging out China’s 2,264 tons gold reserve.
Russia has rapidly increased its gold reserves since its invasion of Ukraine on Feb. 24, 2022. Because the country faced economic sanctions from governments around the globe, it bolstered its gold reserves to guard against economic pressure and instability. Nonetheless, the exchange rate between the U.S. dollar and Russian ruble hit an all-time high in March 2022 at $1 to ₽126.40, and the country’s inflation rate surged to 17.8% in April 2022.
Gold reserve FAQs
How much gold does the U.S. have in its reserve?
The U.S. maintains 8,133 in gold reserves. Its gold reserves are price well over $600 billion, making it the biggest holding on this planet.
How are gold reserves stored?
How gold reserves are stored varies by country. Some countries, comparable to the U..S., store all of their gold in their very own domestic vaults, while others store them in multiple locations around the globe. For instance, Italy stores its golds in several different countries, including the U.S. and Switzerland.
Why do some countries buy more gold?
Countries maintain and construct their gold reserves for several reasons, namely economic security and strategy. Build up a gold reserve provides some protection against inflation and currency devaluation. Establishing a gold reserve also provides a safeguard against foreign economic powers and reduces dependence on other currencies.