Holders of the world's largest gold reserves are the U.S. UU. With 8, 133, 5 tons), Germany (with 3, 359.1 tons), Italy (with 2, 451.8 tons), France (with 2, 436.5 tons) and Russia (with 2, 301, 6 tons). The top 10 central banks with the largest gold reserves have remained almost unchanged over the past few years.
The United States ranks first with more than 8,000 tons of gold in its vaults, almost as much as the next three countries combined, accounting for 79% of total reserves. The only countries where gold represents a higher percentage of reserves are Portugal with 80.1% and Venezuela with 82.4%. Not surprisingly, the Bank of India has one of the largest gold reserves in the world. The South Asian country, home to 1.25 billion people, is the second largest consumer of precious metals and is one of the most reliable drivers of global demand.
India's festival and wedding season, which runs from October to December, has historically been a big boon for gold's Love Trade. In seventh place is Switzerland, which actually has the largest per capita gold reserves in the world. During World War II, the neutral country became the center of gold trade in Europe, transacting with both the Allies and Axis powers. Today, much of its gold trade is with Hong Kong and China.
France's central bank has sold little of its gold in recent years. The current reserves consist of 100 tons of gold coins and the rest in bars weighing about 12.5 kilograms each. The vaults of the Banque de France in Paris are one of the four designated depositories of the International Monetary Fund (IMF). Sprott is a respected Canadian businessman and billionaire who has put huge sums of his wealth into gold.
Basically, it's the Canadian version of John Paulson. The Dutch Central Bank announced that it will move its golden vaults from Amsterdam to Camp New Amsterdam, about an hour from the city, citing the onerous security measures of its current location. As many others have pointed out, this seems odd, given that the bank has recently repatriated a large amount of its US gold. With the largest official participation in the world, the U.S.
Lays claims almost as much gold as the next three countries combined. It also has the third highest gold allocation as a percentage of its foreign exchange reserves. As far as we know, most of the United States,. The gold is kept at Fort Knox in Kentucky, and the rest in the Philadelphia Mint, the Denver Mint, the San Francisco Assay Office and the West Point Bullion Depot.
Which state loves gold the most? Well, the state of Texas went so far as to create its own Texas bullion repository to safeguard investors' gold. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions achieve financial freedom through our website, podcasts, books, newspaper columns, radio shows and premium investment services. You are reading a free article with opinions that may differ from The Motley Fool's premium investment services. Become a Motley Fool member today for instant access to our top analyst recommendations, in-depth research, investment resources and more.
Learn more There are many reasons why people buy gold. Some invest in the precious metal to protect themselves from inflation, even though one of the most common myths about investing in gold is that it can overcome inflation. Others buy it because of a cultural tradition or because they think that gold is a safe investment. Meanwhile, some buy it with speculation that its price will continue to rise.
No matter the reason, the main thought that drives this purchase is that gold is valuable and will be even more so in the future due to the many factors that influence the price of gold. We'll explore the many motivations behind investing in gold by looking at some of the biggest gold investors in the world. To further illustrate how rare and valuable gold is, the U.S. The Geological Survey estimates that there are about 57,000 tons still in the ground to extract.
Dig it up and melt it, and the extra gold bucket available would only be as tall as an adult giraffe. While there is a small industrial demand for this gold, most of it goes to jewelry and investment in the form of coins and bars, and the latter are often held by gold ETFs, as well as the official sector, such as governments. Contains about 5% of the world's gold. This reserve is greater than that of the next three gold-holding countries (Germany, Italy and France) combined.
It has the largest cache of gold controlled by the government, the largest holder of non-governmental gold is the International Monetary Fund (IMF), which is a group of 189 countries working together to promote monetary cooperation. The IMF currently has 2,184 ounces of gold, which places it between Germany and Italy on a global scale. The IMF has acquired its gold reserves in several ways. After its founding in 1944, the IMF received 25% of its initial quota replacements in the form of gold and required members to pay a quarter of all subsequent quota increases in gold.
In addition to that, member countries can pay interest and credits owed to the IMF in gold, as well as sell their gold to the organization to purchase the currency of another member. While Indians tend to buy gold in the form of jewels and Germans in the form of coins and bars, a growing number of other investors have chosen to invest the precious metal through an ETF, the largest of which is the SPDR Gold Trust (GLD -0.10%). Gold price data in US dollars by yCharts So, although you may not be the biggest investor in the gold market, it seems to be the best option for long-term investors. The other group of gold buyers wants to profit from its price movement.
This type includes hedge funds such as Paulson's, which typically buy ETFs such as SPDR Gold Trust, as they can quickly get in and out of that vehicle. That ease of use is why it was at one point the most valuable ETF in the world, because speculators invested in the fund as the price of gold rose in the hope of benefiting from that momentum. Now, it's not even in the top 10 because gold's brightness has diminished as its price has dropped from the peak. The decision to buy gold is often deeply personal.
Many do so because they believe it will hold its value better than a government-backed currency in the coming years due to inflationary fears or other concerns. Others will invest in gold because they believe it is a sign of wealth. Then there are those who want to speculate that the price of precious metal will rise due to any number of catalysts. Because people invest in gold for different reasons, it's first important to know why you want to buy it.
If buying gold will help you sleep more soundly at night or fulfill a deep cultural or personal desire, then, of course, do not hesitate to buy it. Meanwhile, if you see catalysts on the horizon that should push your price up, it's worth considering a gold ETF. However, if you are looking for an investment that will grow your wealth in the long term, gold is probably not the best option. Market-leading stocks from our award-winning team of analysts.
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