In a recent report by the World Gold Council (WGC), the United States has secured the top spot for the largest gold reserves globally. However, a notable highlight is India’s position at the ninth spot, surpassing nations like Saudi Arabia and the United Kingdom in terms of gold holdings.
Key Highlights from the WGC List:
- United States Leads: The US dominates the list with gold reserves of 8,133.46 tonnes, valued at $489,133 million.
- India’s Impressive Ranking: India secures the ninth position, boasting gold reserves of 2,191.53 tonnes, valued at $131,795 million.
- Global Rankings: Germany, Italy, France, and Russia secure the second to fifth positions, respectively.
- Russia’s Consideration: Amidst geopolitical events, Russia explores using frozen gold reserves to fund a climate damage fund at the COP28 summit.
Insights into Gold Reserves:
Gold reserves play a pivotal role for countries for various reasons. It serves as a stable store of value, supporting a country’s currency. Additionally, gold reserves aid in diversification, mitigating risks associated with the fluctuation of other assets.
Global 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 Countries Maintain Gold Reserves:
- Currency Stability: Gold is considered a stable store of value, supporting a country’s currency.
- Diversification: Gold reserves allow nations to diversify portfolios, mitigating risks from other asset fluctuations.
- Market Volatility Hedge: Gold prices often rise during market volatility, providing a hedge for central banks.
- Trade Settlements: Some countries use gold for settling trade imbalances or as collateral for loans.
- Economic Downturn Hedge: During economic downturns, gold’s value increases, serving as a hedge in crises.
As India solidifies its position in the global gold reserves ranking, the strategic significance of gold holdings remains evident on the world stage.
