Take a look at the below list of Top 10 Countries With Largest Gold Reserves in The World 2017. Humans have been attracted to that shiny rock called gold for thousands of years. While many countries are selling off their gold and using it to pay off debts, others are gobbling it up as fast as they can. In 2010, central banks switched from being net sellers of gold to net buyers. Collectively, in that year, countries added 483 tonnes to their coffers. That was a second largest annual total accumulation since the end of the gold standard. The question then becomes; which countries now have the top 10 largest gold reserves as of 2017. The following countries currently have the largest gold reserves in the world.
List of Top 10 Countries With Largest Gold Reserves in The World 2017
10. India 557.7 Tonnes
When one looks at buildings such as the Taj Mahal and the gold domed structures, it is not surprising that India has one of the largest stashes of gold in the world. The country is home to approximately 1.25 billion people and is the number two largest consumer of all kinds of precious metals. It is considered a major driver of global demand. The gold frenzy in India is fuelled by the festival and wedding season which runs from October to December when consumers love to give gold as a gift.
9. Netherlands 612.5 Tonnes
The Netherlands recently repatriated a large amount of gold from the US. However, now it faces a crisis, as it has nowhere to store it. It is currently renovating its faults, and must find a suitable place to hide its stash while these renovations are taking place. If you ask us, that is a pretty good problem to have.
8. Japan 765.2 Tonnes
Japan is the third largest economy in the world, and it is also the eighth largest hoarder of gold. In January of 2016, it took a move that fuelled demand in gold around the globe. Japan lowered its interest rates to 0, fuelling the central banks most aggressive acquisition of gold in many years.
7. Switzerland 1040 Tonnes
When you think of Switzerland, you think of money, so it is not surprising that Switzerland came in seventh as one of the world’s largest gold reserves. During World War II, Switzerland became the center of the gold market in Europe. It traded with both Axis and Allies partners. Today, it’s favored trading partners are Hong Kong and China. As of the first quarter 2016, the National Bank posted a $5.9 billion profit on its gold holdings.
6. Russia 1460.4 Tonnes
Russia has been slowly rebuilding its gold reserves over the past several years. In 2015, it added gold in an effort to diversify away from holdings in US dollars. In order to finance its acquisition of the Crimean Peninsula, Russia sold a huge amount of its US treasuries. As relations with the US become distant, Russia turns to gold for its stability. This is one of the Top 10 Countries With Largest Gold Reserves in The World 2017.
5. China 1797.5 Tonnes
China has traditionally been secretive about its monetary dealings and prosperity. However, in 2009, it began sharing information about its holdings. China has an advantage over other parts of the world, because China is currently the world’s largest producer of gold. China has a relationship with gold that goes back over 2000 years. It has remained one of the most prized precious metals through more recent times. One can expect that in the future, China will continue to be on a buying spree and to beef up their own production to add to their stores.
4. France 2,435.37 Tonnes
France’s strategy regarding gold has been to refuse to sell gold over the past several years. There is a call currently to halt gold sales altogether. In addition, it is currently making a move to repatriate the contents of its entire foreign vaults. This miserly approach to gold acquisition must make one wonder if they know something that the rest of the world does not.
3. Italy 2,451.8 Tonnes
Italy has maintained the size of its reserves over the past several years in a similar way as France has done. Metal is typically considered a reserve of safety and one that gives protection against currency fluctuation. Traditionally, as instability in the US dollar grows, many countries will pull back and rely in their gold reserves until the dollar stabilizes once again. Unfortunately, moves such as France and Italy’s gold hoarding as of recent can often signal a period of financial instability in the global markets, particularly surrounding the US dollar.
2. Germany 3,381 Tonnes
Germany is taking a similar move to the Netherlands and repatriating its gold that is located in foreign storage locations. This includes its holdings in New York and Paris. Germany has plans to have the entire amount of its gold reserves in its own country by the year 2020. If you been paying attention, this seems to be a trend. European nations are no longer comfortable having their gold outside of their own country’s borders, but currently, none of them is saying a word about the reason why.
1. United States 8,133.5
It is not surprising that the United States lays claim to the largest gold holdings in the world. When one adds the actual tonnage of gold, the gold in the US adds to as much as the second third and fourth positions combined. There have been rumors floating around that the US no longer has the physical gold stash that it claims. Traditionally, the US gold stores are at the Ft.Knox, Kentucky. There are also amounts at the major US mint locations, the Assay office in San Francisco, and the Bouillon Depository in West Point academy. As far as anyone knows, the gold is still there and this is nothing more than a conspiracy theory and tall tale. However, it seems that a lot of gold has been moved in recent years, including the repatriation of foreign reserves to countries in Europe. This movement of gold may be the reason for rumors about large amounts of gold disappearing from the US stash. It may be that the gold they are seeing removed is not that which actually belongs to the US, but may be the reserves of foreign countries.
These are the Top 10 Countries With Largest Gold Reserves in The World 2017. The top producers of gold include China, Australia, the US, Russia, and South Africa. As long as there is a demand for gold, the hard task of mining this precious metal will remain an important industry. With its use as a noncorrosive component of electronics, the demand for gold has become a technological one, rather than simply one of aesthetics. Its nonreactive nature is what makes it one of the most prized natural resources in the world. Perhaps, it is its physical and chemical properties that make it so fascinating and are part of its allure, even to those who know nothing about the physical or chemical aspects of the metal itself. Economists watch gold as an indicator of future economic periods of boom and bust. Hoarding takes it off the market and creates a demand, which drives the price up. Gold is considered a stable base upon which to build a solid portfolio of investments. However, with the current hoarding that is going on in Europe and the rest of the world, it may be a little more difficult to get your hands on this shiny yellow metal.