Since 2010, central banks around the world have transformed from sellers of gold into buyers. Last year, activity in the official gold sector grew by 36 percent, to 366 tons.
The largest buyer of gold over the past six years, according to GFMS Gold Survey, is the Central Bank of the Russian Federation. He increased his reserves by 224 tons in 2017. And the largest gold seller for the second year in a row is Venezuela.
According to the World Gold Council, the demand for this precious metal in the first three months of 2018 increased by 42 percent compared to the same period last year. As global debt continues to grow, central banks and individual investors may want to increase the amount of gold in their vaults, as it is in high demand in times of economic downturn and geopolitical uncertainty.
Top 10 countries with the largest gold reserves in 2018
According to US Global Investors.
10. India
Gold reserve: 560.3 tons.
Percentage of total foreign exchange reserves: 5.5 percent.
The country, home to 1.25 billion people, is the second largest consumer of the precious metal and one of the most reliable factors in global demand.
The Indian wedding season, which runs from October to December, has historically been the most favorable time for the gold trade. It is inconceivable for an Indian woman to marry without a large number of gold jewelry, which are made specifically for the celebration.
9. The Netherlands
General reserves: 612.5 tons.
Percentage of foreign exchange reserves: 68,2%.
In 2016, the Central Bank of the Netherlands announced its intention to move its gold reserves from Amsterdam to the New Amsterdam camp, which is about an hour's drive from the city. The camp is located on land that belongs to the Ministry of Defense. There is now the inactive air base of the Royal Air Force of the Netherlands.
The decision to transport gold to New Amsterdam was caused by cumbersome security measures at the current location. The operation for the transportation of reserves and the construction of a new building will be completed in 2022.
8. Japan
Gold reserve: 765.2 tons.
Percentage of foreign exchange reserves: 2.5 percent.
Japan is the third largest economy in the world and is also the eighth largest holder of yellow metal. The Japan Central Bank was one of the most aggressive deposit mitigation practitioners. In January 2016, he reduced the interest rate on deposits below zero (to minus 0.1%), which helped provoke global demand for gold. Indeed, due to the negative rate, banks whose funds are stored in the Central Bank lose money.
7. Switzerland
Gold Reserve: 1040 tons.
Percentage of foreign exchange reserves: 5.3 percent.
In seventh place in the list of owners of the largest gold reserves in the world is a country with one of the lowest levels of corruption. This small federal republic has the world's largest gold reserves per capita.
During World War II, neutral Switzerland became the center of gold trade in Europe, making deals with both the allies and the powers fighting for Germany. Today, most of the Swiss gold trade is in Hong Kong and China.
6. China
Gold reserve: 1842.6 tons.
Percentage of foreign exchange reserves: 2.4 percent.
In the summer of 2015 and for the first time since 2009, the People’s Bank of China began to share information on its gold purchases on a monthly basis.
Although China ranks sixth in the ranking, yellow metal accounts for a small percentage of the country's total reserves - only 2.4 percent. This is the lowest figure on the list of countries that hold the largest gold reserves. However, this figure increased from 2.2% in 2016.
China is also one of the largest gold miners.
5. Russia
Gold reserve: 1909.8 tons.
Percentage of foreign exchange reserves: 17,6%.
The Central Bank of Russia has been the largest buyer of gold over the past six years, and earlier this year overtook China in terms of gold reserves. In 2017, Russia bought 224 tons of bullion in order to diversify from the US dollar, since relations with the West have become strained since the middle of 2014 since the accession of the Crimean Peninsula.
To find funds for gold purchases, Russia sold part of its US Treasury bonds.
4. France
Gold reserve: 2436 tons.
Percentage of foreign exchange reserves: 63,9%.
The central bank of France has sold little gold over the past few years, and calls are being made inside the country to stop selling the precious metal altogether. Marine Le Pen, leader of the far-right National Front party, advocates not only for freezing gold sales, but also for repatriating all gold bars belonging to France from foreign vaults.
3. Italy
Gold reserve: 2451.8 tons.
Percentage of foreign exchange reserves: 67,9%.
For 19 years, Italy’s gold reserves have remained stable, and this is approved by the Italian economist, President of the European Central Bank (ECB) Mario Draghi. In 2013, answering a reporter’s question, what role does gold play in the ECB portfolio, Draghi said that this metal is a “safety margin”, adding that “it provides fairly good protection against dollar fluctuations.”
2. Germany
Total Gold Reserve: 3371 tons.
Percentage of foreign exchange reserves: 70,6%.
Last year, Germany completed a four-year gold repatriation operation, delivering 674 tons of precious metal from the Bank of France and the Federal Reserve Bank of New York to their vaults. The repatriation process is expected to continue through 2020.
Despite the fact that demand for gold in Germany fell last year after reaching a record high in 2016, the country's government is confident that investment in gold will grow steadily after the global financial crisis.
1. United States of America
Gold Reserve: 8 133.5 tons.
Percentage of foreign exchange reserves: 75.2 percent.
The stronghold of democracy has almost as much gold as all three countries in the neighboring places on the list. However, a full check of the US gold reserves was carried out in the 1950s of the last century, and audits in the 70s of the same century. This gave rise to rumors that at present the volume of gold reserves in America is greatly exaggerated, and some of the ingots are replaced with counterfeit ones.
Most of the American gold is located in the Fort Knox military town of Kentucky, while the rest is stored in the Philadelphia Mint, Denver Mint, West Point Bullion Depository and San Francisco Assay Office.
And Texas has gone so far as to create its own gold depository to protect investors' gold.
Complete list of countries with the largest gold reserves in 2018
According to World Gold Council.
| # | Country | 1970 | 1980 | 1990 | 2000 | 2010 | 2018 | Share% |
|---|---|---|---|---|---|---|---|---|
| 1 | USA | 9839.2 | 8221.2 | 8146.2 | 8136.9 | 8133.5 | 8133.5 | 75.2 |
| 2 | Germany | 3536.6 | 2960.5 | 2960.5 | 3468.6 | 3401 | 3371 | 70.6 |
| 3 | IMF | 3855.9 | 3217 | 3217 | 3217.3 | 2814 | 2814 | |
| 4 | Italy | 2565.3 | 2073.7 | 2073.7 | 2451.8 | 2451.8 | 2451.8 | 67.9 |
| 5 | France | 3138.6 | 2545.8 | 2545.8 | 3024.6 | 2435.4 | 2436 | 63.9 |
| 6 | Russia | … | … | … | 384.4 | 788.6 | 1928.2 | 17.7 |
| 7 | China | … | 398.1 | 395 | 395 | 1054.1 | 1842.6 | 2.4 |
| 8 | Switzerland | 2427 | 2590.3 | 2590.3 | 2419.4 | 1040.1 | 1040 | 5.3 |
| 9 | Japan | 473.2 | 753.6 | 753.6 | 763.5 | 765.2 | 765.2 | 2.5 |
| 10 | Netherlands | 1588.2 | 1366.7 | 1366.7 | 911.8 | 612.5 | 612.5 | 68.2 |
| 11 | India | 216.3 | 267.3 | 332.6 | 357.8 | 557.7 | 560.3 | 5.5 |
| 12 | ECB | … | … | … | 747.4 | 501.4 | 504.8 | 27.3 |
| 13 | Taiwan | 72.9 | 97.8 | 421 | 421.8 | 423.6 | 423.6 | 3.8 |
| 14 | Portugal | 801.5 | 689.6 | 492.4 | 606.7 | 382.5 | 382.5 | 65.3 |
| 15 | Saudi Arabia | 105.8 | 142 | 143 | 143 | 322.9 | 322.9 | 2.7 |
| 16 | Kazakhstan | … | … | … | 57.2 | 67.3 | 314.3 | 43.2 |
| 17 | Great Britain | 1198.1 | 585.9 | 589.1 | 487.5 | 310.3 | 310.3 | 8.3 |
| 18 | Lebanon | 255.5 | 286.8 | 286.8 | 286.8 | 286.8 | 286.8 | 21.5 |
| 19 | Spain | 442.6 | 454.3 | 485.6 | 523.4 | 281.6 | 281.6 | 17 |
| 20 | Austria | 634.2 | 656.6 | 634.3 | 377.5 | 280 | 280 | 47.5 |
| 21 | Turkey | 112.9 | 117.2 | 127.4 | 116.3 | 116.1 | 236 | 10.5 |
| 22 | Belgium | 1306.6 | 1063.1 | 940.3 | 258.1 | 227.5 | 227.4 | 36.2 |
| 23 | Philippines | 49.8 | 59.7 | 89.8 | 224.8 | 154.1 | 196.4 | 10.3 |
| 24 | Algeria | 170.1 | 173.6 | 159.9 | 173.6 | 173.6 | 173.6 | 7 |
| 26 | Thailand | 72.8 | 77.4 | 77 | 73.6 | 99.5 | 154 | 3 |
| 25 | Venezuela | 341.2 | 356.4 | 356.4 | 318.5 | 365.8 | 150.2 | 66.7 |
| 27 | Singapore | … | … | … | 127.4 | 127.4 | 127.4 | 1.8 |
| 28 | Sweden | 177.8 | 188.8 | 188.8 | 185.4 | 125.7 | 125.7 | 8.5 |
| 29 | South Africa | 591.9 | 377.9 | 127.2 | 183.5 | 124.9 | 125.3 | 10.7 |
| 30 | Mexico | 156.4 | 64.1 | 28.6 | 7.8 | 7.1 | 120.1 | 2.9 |
| 31 | Libya | 75.8 | 95.7 | 112 | 143.8 | 143.8 | 116.6 | 6.1 |
| 32 | Greece | 103.5 | 119.3 | 105.8 | 132.6 | 112.2 | 113 | 58.9 |
| 33 | Korea | 3 | 9.3 | 10 | 13.7 | 14.4 | 104.4 | 1.1 |
| 34 | Romania | … | 115.5 | 68.7 | 104.9 | 103.7 | 103.7 | 9.3 |
| 35 | Bank for International Settlements | 250.6 | 234.6 | 242.6 | 199.2 | 120 | 103 | |
| 36 | Poland | … | 23.6 | 14.7 | 102.8 | 102.9 | 103 | 3.6 |
| 37 | Iraq | 127.5 | … | … | … | 5.9 | 89.8 | 7.8 |
| 38 | Indonesia | 3.5 | 74.5 | 96.8 | 96.5 | 73.1 | 80.6 | 2.7 |
| 39 | Kuwait | 76.6 | 79 | 79 | 79 | 79 | 79 | 8.4 |
| 40 | Egypt | 75.7 | 75.6 | 75.6 | 75.6 | 75.6 | 77 | 7.8 |
| 41 | Australia | 212.4 | 246.7 | 246.7 | 79.7 | 79.9 | 72.8 | 5.2 |
| 42 | Brazil | 40.2 | 58.3 | 142.1 | 65.9 | 33.6 | 67.3 | 0.7 |
| 43 | Denmark | 57.4 | 50.7 | 51.3 | 66.6 | 66.5 | 66.5 | 3.6 |
| 44 | Pakistan | 48.5 | 56.6 | 60.6 | 65 | 64.4 | 64.6 | 17 |
| 45 | Argentina | 124.2 | 136 | 131.7 | 0.6 | 54.7 | 61.7 | 4.2 |
| 46 | Finland | 25.7 | 30.7 | 62.3 | 49 | 49.1 | 49.1 | 19.9 |
| 47 | Belarus | … | … | … | 1.2 | 35.3 | 46.5 | 26.8 |
| 48 | Jordan | 24.8 | 31.8 | 23.4 | 12.5 | 12.8 | 43.5 | 12.4 |
| 49 | Bolivia | 11.3 | 23.6 | 27.8 | 29.2 | 28.3 | 42.5 | 18.4 |
| 50 | Bulgaria | … | … | … | 39.9 | 39.9 | 40.4 | 6.1 |
| 51 | Malaysia | 42.6 | 72.2 | 73.1 | 36.4 | 36.4 | 37.6 | 1.5 |
| 52 | ZAEVS | … | … | … | … | … | 36.5 | 11.7 |
| 53 | Peru | 35.3 | 43.5 | 68.7 | 34.2 | 34.7 | 34.7 | 2.3 |
| 54 | Slovakia | … | … | … | 40.1 | 31.8 | 31.7 | 30.3 |
| 55 | Qatar | 5.8 | 14.8 | 25.9 | 0.6 | 12.4 | 26.6 | 6.2 |
| 56 | Syria | 24.9 | 25.9 | 25.9 | 25.9 | 25.8 | 25.8 | 6.1 |
| 57 | Ukraine | … | … | … | 14.1 | 27.5 | 24.3 | 5.6 |
| 58 | Sri Lanka | … | 2 | 1.9 | 10.5 | 17.2 | 22.3 | 12.3 |
| 59 | Morocco | 18.7 | 21.9 | 21.9 | 22 | 22 | 22 | 3.8 |
| 60 | Afghanistan | … | … | … | … | 21.9 | 21.9 | 11.5 |
| 61 | Nigeria | 17.8 | 21.4 | 21.4 | 21.4 | 21.4 | 21.4 | 1.9 |
| 62 | Serbia | … | … | … | 14.2 | 13.1 | 19.5 | 6.5 |
| 63 | Tajikistan | … | … | … | 0.2 | 2.6 | 15.6 | 52.5 |
| 64 | Bangladesh | … | 1.7 | 2.5 | 3.4 | 13.5 | 14 | 1.8 |
| 65 | Cyprus | 13.3 | 14.3 | 14.3 | 14.4 | 13.9 | 13.9 | 64.9 |
| 66 | Curacao | … | 1.2 | 1.9 | 1.9 | 3.9 | 13.1 | 27.7 |
| 67 | Colombia | 15.1 | 86.7 | 19.5 | 10.2 | 6.9 | 12.8 | 1.2 |
| 68 | Mauritius | … | 1.2 | 1.9 | 1.9 | 3.9 | 12.4 | 8.4 |
| 69 | Cambodia | … | … | … | 12.4 | 12.4 | 12.4 | 4.3 |
| 70 | Ecuador | 17 | 12.9 | 13.8 | 26.3 | 26.3 | 11.8 | 12.6 |
| 71 | Czech Republic | … | … | … | 13.9 | 12.7 | 9.3 | 0.3 |
| 72 | Ghana | 5 | 7.9 | 7.3 | 8.7 | 8.7 | 8.7 | 5.8 |
| 73 | Kyrgyzstan | … | … | … | 2.6 | 2.6 | 8.2 | 15.7 |
| 74 | Paraguay | … | … | … | 1.1 | 0.7 | 8.2 | 4.1 |
| 75 | UAE | … | … | … | … | … | 7.5 | 0.3 |
| 76 | Myanmar | 15.5 | 16.2 | 6.4 | 6.7 | 6.9 | 7.3 | 5.8 |
| 77 | Guatemala | 55.7 | 7.8 | 7.8 | 7.2 | 7.2 | 6.9 | 2.5 |
| 78 | Macedonia | … | … | … | 3.5 | 6.8 | 6.9 | 9.3 |
| 79 | Tunisia | 3.9 | 5.8 | 5.8 | 6.8 | 6.8 | 6.8 | 4.8 |
| 80 | Latvia | … | … | … | 7.7 | 7.7 | 6.6 | 6 |
| 81 | Nepal | … | … | … | … | … | 6.4 | 3 |
| 82 | Ireland | 14.2 | 11.1 | 11.2 | 5.5 | 6 | 6 | 5.8 |
| 83 | Lithuania | … | … | … | 5.8 | 5.8 | 5.8 | 5 |
| 84 | Bahrain | … | … | … | … | 4.7 | 4.7 | 6 |
| 85 | Brunei | … | … | … | … | … | 4.5 | 5.9 |
| 86 | Mozambique | … | … | … | 2.2 | 2.3 | 4.4 | 5.4 |
| 87 | Mongolia | … | … | … | … | … | 3.6 | 5.1 |
| 88 | Slovenia | … | … | … | 0 | 3.2 | 3.2 | 15.5 |
| 89 | Aruba | … | … | 3.1 | 3.1 | 3.1 | 3.1 | 13.9 |
| 90 | Hungary | … | 64.4 | 9.3 | 3.1 | 3.1 | 3.1 | 0.5 |
| 91 | Bosnia and Herzegovina | … | … | … | … | 1 | 3 | 1.8 |
| 92 | Luxembourg | 13.7 | 14.2 | 10.7 | 2.4 | 2.2 | 2.2 | 10.7 |
| 93 | Hong Kong | … | … | 7.1 | 2.1 | 2.1 | 2.1 | 0 |
| 94 | Iceland | 0.9 | 1.5 | 1.5 | 1.8 | 2 | 2 | 1.3 |
| 95 | Papua New Guinea | … | 1.8 | 2 | 2 | 2 | 2 | 4.8 |
| 96 | Trinidad and Tobago | … | 1.7 | 1.7 | 1.9 | 1.9 | 1.9 | 1 |
| 97 | Haiti | … | … | … | … | … | 1.8 | 3.3 |
| 98 | Yemen | … | … | 0.5 | 0.5 | 8.9 | 1.6 | 1.3 |
| 99 | Albania | … | … | … | 3.5 | 1.6 | 1.6 | 1.9 |
| 100 | Salvador | 15.4 | 16 | 14.6 | 14.6 | 7.3 | 1.4 | 1.6 |
| Total | 36606.7 | 35836.3 | 35582.1 | 33059.9 | 30534.5 | 33813.2 | ||
| Eurozone (including the ECB gold) | … | … | … | 12426.9 | 10785.5 | 10779.5 | 55.7 |
