GOLD STANDARD - RESERVES - A-Z

Dig for treasure with our A - Z or set a course for HOME me hearties

When food shortages and the energy crisis really begins to bite, only gold, silver and gemstones will be worth anything, by way of savings and pensions. Banks who trade in real coin of the realm, are the only ones who will be trusted in the future. Coins could soon make a comeback. The good news is that countries do not need to mint their own. Anyone can produce a quarter ounce dollar, based on the value of gold itself, rather than what any nation says it is worth. We'd suggest that gold is index linked to food, timber and other essential commodities.

In days gone by they traded in real money based on solid gold and silver minted coins. Today, paper currency is based on worthless promises, made by governments that are typically corrupt is some measure; political pirates, racking up staggering national debts, based on flawed policies. There are though some countries who are building up real wealth. Gold reserves as ingots and bars, that will be worth something when the digital/paper system collapses. Paper and digital currency is no better than Crypto currencies. Here today, gone tomorrow.

So it is that when John Storm discovers a long lost hoard of treasure, a number of nations are keen to get their grubby mitts on it. To add to their stockpiles.

TOP TEN

1. The United States of America, with 8,133.5 tons of gold

Gold makes up 79% of the USA’s foreign reserve (the only countries above this are Venezuela with 82.4% and Portugal with 80.1%). The majority of this gold is thought to be held in depositories across America, such as the United States Bullion Depository, better known around the globe as Fort Knox. Total American reserves are worth over $656 billion (£546bn). 

2. Germany, with 3,362.4 tons of gold

Gold makes up 74.5% of the foreign reserves in Germany. The gold reserves of Germany are kept at Deutsche Bundesbank in Frankfurt and the New York branch of the Federal Reserve Bank of the US, and the Bank of England in London.

3. Italy, with 2,451.8 tons of gold

69.3% of foreign reserves in Italy are gold. Italy has also held its position in the top 10 largest gold reserves in the world for quite some time now.

4. France, with 2,436.2 tons of gold

About 64.5% of the foreign reserves in France are gold. In recent years, France has sold only a tiny amount of its gold, and there are talks of ending it entirely. France’s far-right National Front leader, Marine Le Pen, wants to stop the sale of gold but also wishes to repatriate the entire sum from a foreign land.

5. Russia, with 2,298.5 tons of gold

For the past seven years, Russia has become the second largest buyer of gold in the world (Turkey has the first spot as it bought 134 tons of gold for the second consecutive year). Only 22% of its total holdings are gold for Russia. It also bought 227 tons of gold to expand its currency from US dollars.

6. China, with 1,958.3 tons of gold

After 2009, China became secretive about the country’s gold activity. Since 2015, the People’s Bank of China has started to share its monthly gold purchasing projects. Although China is in the top 10 most extensive gold reserves list, only 3.3% of its foreign reserves of it account for gold.

7. Switzerland, with 1,040 tons of gold

As it traded with both Allies and Axis countries, this neutral country in World War II became the epicenter of all European gold 
trades. Nowadays, it primarily trades with Hong Kong and China.

8. Japan, with 765.2 tons of gold

The third largest economy in the world has gold worth $43 billion. This data came from a report in February 2021. However, this number has come down from the previous $46 billion. 3.1% of foreign reserves in Japan are gold.

9. India, with 686.8 tons of gold

It is not a surprise that this South Asian country is on this list as it is the second largest consumer of gold. India saw a rise in gold reserves in the last quarter of 2020 as the wedding season kicked in. Only 6.5% of India’s foreign reserves are gold.

10. The Netherlands, with 612.4 tons of gold

67.4% accounts for gold in the Netherlands’ foreign reserves. The Dutch Central Bank recently announced that it would be moving its vaults from Amsterdam to Camp New Amsterdam.

TOP TWENTY

11. Turkey, with 488.87 tonnes

Turkey's gold reserves fell by more than 200 tonnes between 2017 and 2019, from 495.6 tonnes to 293.6 tonnes. The country then went on a buying spree due to concerns over its relationship with the US and a year of crisis for the nation's currency, the lira, and ended up with 716.3 tonnes of gold in the last quarter of 2020. It then led the global drive to sell off gold during the pandemic.

In the second quarter of 2021, Turkey had 407.6 tonnes of the precious metal and later sold off another 13.9 tonnes. By the end of 2021, the country had 392.8 tonnes of gold left, less than 55% of its total reserves at the end of 2020. However, it's since increased its stocks by an impressive 96.07 tonnes, meaning it currently owns 488.87 tonnes of gold. The nation added 31.17 tonnes of this in the third quarter of 2022 alone, the largest increase of any country in the world. 

12. Taiwan, with 423.63 tonnes

Despite being a small island off the coast of China, Taiwan is sitting on 423.63 tonnes of gold. In 2019 the country dipped into its gold reserves to produce coins to commemorate the upcoming inauguration of President Tsai Ing-wen as the chairperson of the Democratic Progressive Party. The central bank made a total of 10,000 gold coins and 50,000 silver coins to mark the occasion, which took place in May 2020

13. Uzbekistan, with 390.03 tonnes

A mineral-rich country, Uzbekistan has a wealth of resources including oil, natural gas, gold, silver and uranium. As well as being a top producer of the precious metal, the country reportedly plans to continue increasing its gold reserves to 430 tonnes by 2024, a further increase of around 60 tonnes. 

However, in July 2020 the country became the world's largest seller of gold as it pinned its hopes of economic recovery from the COVID-19 pandemic on it. In fact, in the first eight months of 2020, Uzbekistan sold $5.8 billion (£4bn) of gold, nearly a billion dollars more than the $4.9 billion (£3.5bn) it sold throughout the whole of 2019. The country then changed tack at the beginning of 2021 and was one of four nations leading a gold purchasing drive in February 2021, despite the continuing trend for central banks to sell up during the COVID-19 crisis.

In the third quarter of 2021, Uzbekistan added 25.5 tonnes to its reserves, the second largest increase of any country in the world. It followed this up by adding a further 26.44 tonnes to its stock between the first and second quarter of 2022, and an additional 26.13 tonnes in the third quarter. This means the country's reserves now total 390.03 tonnes, taking it from 15th to 13th place. 

14. Portugal, with 382.57 tonnes

Portugal has 382.57 tonnes of gold. However, the country has battled economic instability and there have been calls for it to sell off some of its gold reserves to reduce its national debt, which currently stands at around €276 billion ($291bn/£239bn). Regulations make this easier said than done though and, for now, Portugal is holding onto its precious asset.

15. Kazakhstan, with 381.49 tonnes

Kazakhstan's National Bank increased its gold reserves by more than 100 tonnes in the past three years, in a bid to reduce the country's reliance on the US dollar and neutralise currency risks. And in the months before the COVID-19 pandemic hit, it bought up more gold. Even at the beginning of 2021, as the country was very much still feeling the effects of the crisis, Kazakhstan increased its gold ownership.

The land-locked country, which is currently working to develop its gold mining industry through foreign investors and low government regulation, added an impressive 11.27 tonnes of gold to its stocks in the third quarter of 2021, bringing its total reserves to 402.38 tonnes. But in the first quarter of 2022, it changed course, rapidly selling off 34.26 tonnes to bring its reserves back down to 368.12 tonnes. It later bought back 15.79 tonnes, but sold off 2.44 tonnes in the third quarter of the year.

16. Saudi Arabia, with 323.07 tonnes

The oil-rich country of Saudi Arabia has the second-highest gold reserves in the Middle East, with 323.07 tonnes of the precious metal. As part of plans to diversify its economic base and rely less heavily on oil, Saudi Arabia is also committed to boosting its gold mining industry. Although overshadowed by oil, this is not a new endeavour, as archaeological studies show that gold was mined in the country up to 5,000 years ago.

17. United Kingdom, with 310.29 tonnes

Many countries choose to store their gold in the heavily fortified Bank of England vault, the second largest in the world after the vault at the New York Federal Reserve. The UK has its fair share of gold reserves too, with 310.29 tonnes of the precious metal currently held in its name. Despite there being no active gold mines in the UK, it's long been seen as the centre of the wholesale gold market and a major importer and exporter of the metal.

However, this is a much-reduced reserve after the nation's Chancellor at the time (and later Prime Minister) Gordon Brown made the controversial decision to sell more than half of the UK's gold reserves – 401 tonnes – for $3.5 billion (£2.2bn) in 1999. The price of gold skyrocketed in the years that followed and many believe it was the wrong time to sell.

18. Lebanon, with 286.83 tonnes

It may not be the most stable country in the world, but this small nation is rich in gold. Lebanon is currently holding onto 286.83 tonnes of gold, giving it the third-largest reserves in the Middle East. Although Lebanon has a mining industry, gold is not one of its abundant natural resources, and it principally mines limestone, iron ore, and salt.

19. Spain, with 281.58 tonnes

Spain holds just over a tonne more gold than Austria. Gold mining has been going on in Spain since pre-Christian times and it was the Romans who turned it into a flourishing industry.

There's now a renewed interest in Spanish gold with a lot of prospector activity being carried out in the hope of being able to strike it lucky. That's unlikely to impact heavily on the country's gold reserves, however, which have remained stable over the course of 2022. 

20. Austria, with 279.99 tonnes

There's a relatively big leap between 21st and 20th place with Austria recorded as holding 279.99 tonnes of gold, over 35 tonnes more than Thailand. In the past, much of Austria's stock has been held by the Bank of England, but in 2015 it was announced that the Austrian National Bank wanted to repatriate much of this back to Vienna so that at least half of Austrian gold is held at home.

TOP THIRTY

21. Thailand, with 244.16 tonnes

Thailand added more than 90 tonnes of gold to its stockpile in the second quarter of 2021, bringing its total reserves to 244.16 tonnes and shifting the country five places up the gold ownership rankings. Thailand mines its own gold, and the Thai people place a high value on the precious metal. In fact, gold jewellery is arguably more popular in southeast Asia as a whole than it is elsewhere in the world. 

22. Poland, with 228.67 tonnes

In November 2019, Bloomberg reported that Poland had transported $5.2 billion (£4bn) worth of Polish-owned gold bars from the Bank of England, where they had been stored since World War II to hide them from the Nazis, to secret vaults back in Poland. 

In 2021 Poland expanded its gold reserves in a bid to protect domestic currency values against the rising dollar, bringing them to their highest level in 35 years at 231.77 tonnes. Poland’s central bank wanted to buy another 100 tonnes of gold – around $5.5 billion (£3.6bn) worth – over the coming years, Reuters reported in March 2021, following a trend in Eastern European countries looking to reduce their reliance on assets such as the US dollar. The rankings show that Poland has actually depleted its stocks since 2021, though its current reserves of 228.67 tonnes represent a tiny increase of 0.01 tonnes since the first quarter of 2022. 

23. Belgium, with 227.4 tonnes

Belgium is holding onto 227.4 tonnes of gold. Most of this is thought to be held abroad, with some in the Bank of England and some in the Bank of Canada. There was talk of the country repatriating its stocks, but it's thought that the transport and security costs involved in the move were prohibitive and Belgium was unsure where to store its gold if it did return to home soil.

24. Algeria, with 173.56 tonnes

The North African country of Algeria has over 12 tonnes more gold than Venezuela, with 173.56 tonnes of the gilded stuff. It also has a strong gold mining tradition, with gold thought to have been mined here on a small scale since pre-Roman times. The government has only recently taken steps to encourage commercial gold mining on a large scale as it's thought that there is a great deal of wealth hidden beneath its soil.

25. Venezuela, with 161.22 tonnes

Venezuela was in the top 20 gold owners until a few years ago. But in a bid to reduce its vast debts and fend off economic crisis, it sold off about $1.7 billion (£1.2 billion) worth of gold in early 2016. In September 2019, it was reported that the country's reserves had fallen to a 75-year low as the government sold off gold to restructure its debt. Venezuela has been trying to sell more of its gold reserves to combat the effects of the pandemic by using the money it raises to buy into the United Nations Development Programme, which will allow it to buy more medical equipment, medicines, and food.

However, the Bank of England, which holds around a third of its gold reserves, has refused Venezuela access amid US sanctions against the South American country. In retaliation, Venezuela launched a lawsuit against the bank in May 2020 following its decision not to accept Nicolas Maduro as Venezuela's leader. In July 2022, the British government ruled that the Venezuelan state won't be given access to the reserves as long as it's controlled by Maduro. For now, the nation's gold stocks remain the same at 161.22 tonnes, after dropping by around 6 tonnes in the first six months of 2022. 

26. Philippines, with 155.37 tonnes

The Philippines is one of Asia's largest gold producers. Although mining is big business here, it's thought that much of the country's gold remains untapped. Desperately poor locals hoping to get lucky and literally strike gold even undertake dangerous dives in mud-filled swamp mines in search of the precious metal. The Philippines has large reserves of gold already, however, with 155.37 tonnes currently under its ownership. That's a slight decrease of 2.52 tonnes since the end of 2021. 

27. Singapore, with 153.74 tonnes

Those looking for a secure place to store their gold often settle on Singapore, because the country hasn't been tarnished by any major corruption scandals, crime is low and so are taxes, and the cost of gold storage is incredibly competitive. The country itself has also got a substantial reserve of gold: 153.74 tonnes of the stuff to be precise, a significant increase of 26.34 tonnes between the second and third quarters of 2021. 

28. Iraq, with 130.32 tonnes

A newcomer to the top 30, Iraq increased its gold reserves by a substantial 33.97 tonnes in the first quarter of 2022, the largest addition of any country in the world. The Middle Eastern nation has reportedly been busy expanding its reserves of both gold and cash, with the Central Bank of Iraq having expected the latter to rise from $80 billion (£69.2bn) to $90 billion (£77.8bn) by the end of 2022. According to the bank's Deputy Governor Ammar Khalaf, this has been a response to rising oil prices as a result of the Russian war in Ukraine. Iraq then actually reduced its reserves by 0.7 tonnes between the second and third quarters of 2022. 

29. Brazil, with 129.65 tonnes

In the second quarter of 2021, Brazil added a considerable 53.75 tonnes of gold to its reserves, almost doubling its hoard and pushing Mexico out of the top 30 countries. The purchase was reportedly Banco Central do Brasil’s largest gold acquisition since at least December 2000. The move was unsurprising, as the World Gold Council anticipated that central banks would be net buyers of gold following the precious metal’s stellar performance during the COVID-19 pandemic. In the third quarter of 2021, Brazil followed up this purchase by buying a further 8.54 tonnes, meaning its reserves now outweigh those of Sweden for the first time. 

30. Sweden, with 125.72 tonnes

Sweden isn't an obvious choice as a major player in the gold market, but this Scandinavian country actually owns 125.72 tonnes of gold bars, having remained neutral in World War Two. It doesn't keep all its stocks on home ground, however. As well as Sweden's central bank – the Riksbank – the country's gold is also reportedly held within the Bank of England, the Bank of Canada, the Federal Reserve Bank in America, and the Swiss National Bank.

HOW DOES HAVING GOLD RESERVES IMPACT A COUNTRY?

Any country that exports gold or has a huge gold reserve will inevitably experience a rise in its currency as the price of gold 
increases. This price rise of gold increases the trade or helps balance the trade deficit. It also leads to an increase in the country’s exports.

On the other side, if any country lacks gold in its reserves and is a massive importer of it, they have a weaker economy whenever the gold price increases.

In 2020, the top 10 countries traded more than one metric ton of gold, emphasizing just how important this metal is in the world economy.

According to the WGC (World Gold Council) data from April 2021, central banks bought about 273 tons of gold in 2020. International Monetary Fund is not a country; thus, it is not included in the list. However, if it were, it would be in the third position with 2,814 tons of gold in its safe.

The best known golden treasures are Doubloons, Guineas and Sovereigns. Other forms of transportable money are diamonds, rubies and emeralds.

Treasure Island was written by Robert Louis Stevenson, becoming an instant hit, popular with children and adults, the subject of many films and graphic novels.

STORM BY NAME, STORMY BY NATURE - Only two people knew where Henry Morgan's golden hoard was stashed, and they are both in Davy Jones Locker. Blackbeard was tortured by a British officer, trying to extract the secret, Henry Morgan died of a heart attack in Jamaica. John Storm discovers the location, but refuses to tell, even in the International Court, where Haigue prosecutors try every trick in the book to make him talk.

  BIGGEST INTERNATIONAL GOLD RESERVES BY COUNTRY - A TO Z INDEX OF WEALTHY NATIONS

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