Top 10 Countries with the Largest Gold Reserves Revealed, India Ranks 9th
Gold is considered a safe-haven asset.
Gold reserves remain a critical factor in ensuring the economic stability of nations, serving as a reliable store of value, especially during times of financial uncertainties. Although the gold standard, which pegged the value of paper currency to gold, was officially abandoned in the 1970s, many countries continue to maintain gold reserves, with growing demand due to economic uncertainties.
Here are the top 10 countries with the largest gold reserves:
- United States: 8,136.46 tonnes
- Germany: 3,352.65 tonnes
- Italy: 2,451.84 tonnes
- France: 2,436.88 tonnes
- Russia: 2,332.74 tonnes
- China: 2,191.53 tonnes
- Switzerland: 1,040.00 tonnes
- Japan: 845.97 tonnes
- India: 800.78 tonnes
- Netherlands: 612.45 tonnes
Countries maintain gold reserves for several reasons. Firstly, gold is recognized as a stable and dependable store of value, instilling confidence in economic stability, especially during financial uncertainty. Additionally, gold has historically supported the value of a country’s currency, contributing to currency stability.
Diversification is another reason, as gold allows countries to diversify their overall portfolio, mitigating risks associated with fluctuations in the value of other assets. Gold’s attractiveness is heightened by its inverse correlation with the US dollar, appreciating when the dollar’s value decreases, providing central banks a means to protect reserves during market volatility.
Gold reserves play a role in international trade and finance, being used to settle trade imbalances or as collateral for loans. They enhance a country’s creditworthiness and influence its standing in the global economic system. Moreover, gold serves as a hedge during crises, with its value often rising amid economic downturns or geopolitical uncertainties, protecting against inflation and currency devaluation.