Top 10 Countries with Largest Gold Reserves: Check Complete List

Top 10 Countries with the Most Gold Reserves: The last few years have seen very little or no change in the top 10 central banks with the biggest gold reserves. At the top of the list, the United States has around 8,000 tonnes of gold in its vaults, which is almost three times the amount of gold held by the following three nations combined and accounts for 79% of all reserves. Portugal (80.1%) and Venezuela (82.4%) are the only two nations with gold making up a larger percentage of reserves.

List Of Top 10 Countries With Most Gold Reserves

Gold reserves are the amount of gold that a nation's central bank or other monetary authority maintains as a portion of its declared foreign exchange reserves. These reserves offer a degree of security for a country's economic stability and act as a store of value. Since gold is seen as a safe-haven asset, nations keep gold reserves as a buffer against unstable currencies and uncertain economic conditions. The quantity of gold held in reserve can affect a nation's creditworthiness and crisis management capabilities. Central Banks can also buy and sell gold to influence their currency value to reserve holdings.

Here are the current rankings of gold reserves by country in Q3, 2023, estimated by the World Gold Council.

Source: World Gold Council

Why are Gold Reserves important for countries?

• Gold reserves contribute to a nation’s financial stability. Gold is seen as a stable asset in times of economic uncertainty and fluctuations to maintain confidence in the financial system. 
• Gold allows countries to mitigate risk around the volatility of other assets like currencies and securities providing a balance to withstand economic shocks. 
• Gold is a safe-haven asset. Countries with major gold reserves stand better during economic storms, as they retain their value even when other assets face depreciation.
• Gold reserves also define a country’s international credibility and signify commitment to sound economic policies creating a positive influence among investors, creditors and trading partners.
• Gold reserves provide central banks with flexibility in implementing monetary policies. As it influences currency’s value, manages inflation, or responds to changes in the global economic environment. 
• It also acts as a financial buffer during times of economic crisis. The presence of gold reserves is a valuable asset to bridge between payment crisis and economic instability.

Hence, Gold reserves in trade and finance are an asset to settle economic imbalances or as collateral for loans. The presence of gold reserves can enhance a country's value and affect its standing in the global economic system. Also, gold reserves serve as a hedge during crises,  against inflation and currency devaluation.