Countries with the Largest Stockpile of Gold in Reserve
In the United States, the Government under Franklin D. Roosevelt's Presidency took back gold bullion and coins to stabilize the economy by exchanging dollars for gold. The only people allowed to have gold in their possession were dentists.
Countries have been stockpiling gold in their National Banks and reserves over the past several years. Belief is that if the economy falls then the government will need more reserves to put more cash into the economy. In addition, like any individual investor, governments have taken advantage of the increase in gold prices over the past 30 years. When the price of gold increases they can use their reserves to buy down debt.
With more gold in the reserves, each government can increase financial stability in their country. Gold is easily transferrable and supported by Central Reserve Banks.
It wasn't until the mid-1970s under President Ford that gold was able to be purchased by US citizens again. In 1971, under Nixon, the dollar stopped being backed by gold under the international monetary system and the dollar became part of the fiat plan.
In times of uncertainty, inflation, or higher unemployment rates; governments, banks, and individual people use Gold as a major backing to stabilize any financial crisis.
Gold Reserve is defined in Wikipedia as the "gold held by a national central bank, intended mainly as a guarantee to redeem promises to pay depositors, note holders, or trading peers, during the eras of the gold standard, and also as a store of value, or to support the value of the national currency."
Which Nations Have the Most Gold?
Rankings based on the World Gold Councils 3rd Quarter 2022 snapshot: (rounded)
- United States - 8,133 Tonnes
- Germany - 3,355 Tonnes
- Italy - 2,451 Tonnes
- France - 2,436 Tonnes
- Russian Federation - 2,298 Tonnes
- China - 1,948 Tonnes
- Switzerland - 1,040 Tonnes
- Japan - 845 Tonnes
- India - 785 Tonnes
- Netherlands - 612 Tonnes
- Turkey - 488 Tonnes