The World’s Largest Gold Holders
The global gold reserves reveal a fascinating picture of economic strength and strategy among the world’s leading nations. The United States stands far ahead with around 8,000 tonnes of gold (see the image below).
Germany holds about 3,300 tonnes, while Italy and France each have around 2,400 tonnes. Russia’s gold reserves are close to 2,300 tonnes, and China officially reports similar numbers, though many believe it holds much more. Switzerland’s reserves stand at 1,000 tonnes, India holds 880 tonnes, Japan has 850 tonnes, and Turkey holds about 649 tonnes. These ten countries make up the largest holders of gold in the world.
Gold as a Percentage of Forex Reserves
When we look at how much gold contributes to each country’s foreign exchange reserves, the numbers vary widely. The United States, being the issuer of the global reserve currency, holds about 78% of its reserves in gold. European nations like Germany, Italy, and France also show strong confidence in gold, keeping around 70–75% of their reserves in it. Russia holds about 38%, while China remains much lower at only 7%. Switzerland has around 11%, India about 14%, Japan 7%, and Turkey 44%. This variation shows how different countries balance their reliance between gold and foreign currencies.
Rising Gold Share Over the Years
The trend over the last few years shows a clear rise in gold’s share in most countries’ reserves. In 2017, India had just about 5.6% of its reserves in gold, but today that figure has grown to nearly 14%. Turkey’s gold reserves jumped from 11% to 44%, Japan’s from 2.4% to 7%, and Switzerland’s from 5% to 11%. Even China increased its share from 2% to 7%. European countries, already high on gold, moved further up from around 60–65% to 75–80%. This steady accumulation highlights the growing global confidence in gold as a safer and more stable store of value.
Falling US Treasury Holdings
At the same time, many countries are cutting down on their holdings of US Treasury bills. Germany’s holdings dropped from $427 billion to about $107 billion. Russia has completely exited US Treasury investments, while China has halved its holdings. Switzerland reduced its exposure by about one-third, and Japan also brought its holdings down by nearly half. India, however, has slightly increased its share from $133 billion to $219 billion. This global shift shows a cautious move away from dependence on the US dollar.
The Ongoing Global Trend
Central banks are clearly realigning their strategies. While short-term corrections in gold prices may occur, these institutions continue to buy gold slowly and steadily. The current global average of gold holdings is around 23% of total forex reserves, and it is expected to rise toward 40% in the coming years. This long-term movement signals that central banks are preparing for a world where gold once again plays a central role in securing national wealth.
