The United States has emerged as the country with largest gold reserves in the world, as estimated by the World Gold Council (WGC). According to the list released by the WGC, India is placed at the ninth spot and is ahead of Saudi Arabia and United Kingdom.
The US has gold reserves measuring 8,133.46 tonnes as per the WGC list, valued at $489,133 million. Germany is at distant second spot with estimated gold reserves of 3,352 tonnes. Italy, France and Russia occupy the third, fourth and fifth spot respectively, Forbes reported.
India has gold reserves measuring 2,191.53 tonnes, valued at $ 131,795 million as per the WGC list.
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According to a Reuters report, Russia has said it is looking into whether its frozen gold reserves, taken after Russia invaded Ukraine, could be used to fund the climate damage fund to help developing countries.
In what looked like an attempt to try to fulfil Moscow's aim of doing "everything possible" to stop the West from seizing its frozen reserves, Russia's climate envoy said at the COP28 summit the move would help to close the gap between developed and developing countries in dealing with climate change.
Here is the list of top 10 countries with most gold reserves:
| S.NO | COUNTRY | GOLD RESERVES (IN TONNES) | GOLD RESERVE (IN $ MILLION) |
|---|---|---|---|
| 1. | UNITED STATES | 8,133.46 | 489,133.74 |
| 2. | GERMANY | 3,352.65 | 201,623.07 |
| 3. | ITALY | 2,451.84 | 147,449.64 |
| 4. | FRANCE | 2,436.88 | 146,551.80 |
| 5. | RUSSIA | 2,332.74 | 140,287.50 |
| 6. | CHINA | 2,191.53 | 131,795.43 |
| 7. | SWITZERLAND | 1,040.00 | 62,543.91 |
| 8. | JAPAN | 845.97 | 50,875.51 |
| 9. | INDIA | 800.78 | 48,157.71 |
| 10. | NETHERLANDS | 612.45 | 36,832.02 |
| 11. | TURKIYE | 478.97 | 28,804.60 |
| 12. | TAIWAN | 423.63 | 25,476.21 |
| 13. | UZBEKISTAN | 383.81 | 23,081.97 |
| 14. | PORTUGAL | 382.63 | 23,010.89 |
| 15. | POLAND | 333.71 | 20,068.84 |
| 16. | SAUDI ARABIA | 323.07 | 16,933.64 |
| 17. | UNITED KINGDOM | 310.29 | 18,660.18 |
| 18. | KAZAKHASTAN | 309.38 | 18,605.42 |
| 19. | LEBANON | 286.83 | 17,249.75 |
| 20. | SPAIN | 281.58 | 17,311.60 |
Why do countries have gold reserves?
There are several reasons behind countries keeping gold reserves. The most important reason is that gold is considered a stable store of value. This precious metals is known to have played a key role in supporting the value of a country's currency. Some countries do view gold reserves as means to maintain their currency's stability.
Another reason why the countries maintain gold reserves is diversification. The nations can diversify their overall portfolio and mitigate risks associated with fluctuations in value of other assets.
There are several reasons behind countries keeping gold reserves. The most important reason is that gold is considered a stable store of value. This precious metals is known to have played a key role in supporting the value of a country's currency. Some countries do view gold reserves as means to maintain their currency's stability.
Another reason why the countries maintain gold reserves is diversification. The nations can diversify their overall portfolio and mitigate risks associated with fluctuations in value of other assets.
The gold price is inversely proportional to US dollar. When the value of dollar depreciates, gold rates increase. As a result, central banks can safeguard their reserves during periods of market volatility.
Some countries are known to utilise this precious metal for settling their trade imbalances or as collateral for loans. During economic downturns, gold value increases and hence acts as a hedge in such crises.