As we know, gold is one of the highest valued metals across the globe. Before the idea of currency could even occur to human beings, gold was used for monetary purposes. Now that we have the idea of currency, a question that is frequently asked is “how is currency secured?”
Well, gold is what secures currency. The gold reserve is where all of a nation’s gold is held for trading and securing currency, to name a few purposes.
In today’s day and age, a nation’s financial asset can include many phenomenons, however during most of history; gold reserves were considered a nation’s key financial asset. In fact, during wars, the gold reserve was a major prize of wars; therefore many countries concealed or moved their gold reserves during World War II.
As of December 2016, the gold holdings of top 40 countries totaled at 31,481.4 tonnes, with United States leading the list with possession of just a bit over 8,000 tonnes, followed by Germany at 3,377 tonnes. Some other countries on the list include Italy, France, China, Russia, India, Turkey and Spain. The numbers estimated vary, since many countries prefer not to publish their gold mining as well as the gold accounted in illegal mining. Additionally, there are also many private holders of gold, which is used for stocks and funding. About 70% of the world’s gold is in jewellery form, followed by investment bars and coins, and then the central banks and industrial.
Even though, in the recent years, many countries such as China have actually opened up about their gold mining business and numbers, it still is a very difficult task to keep track of the world’s gold, as it has been mined for ages.
*All statistics are derived from:
World Gold Council (www.gold.org)
GLD SPDR Gold Shares (www.spdrgoldshares.com)