Due to its aesthetic features and high resale value, gold is one of the world’s largest national assets. Tons of gold are exported annually to reserves, making it an international monetary fund in central banks and in the world gold council.
Precious metals, including gold, are now a currency in many central bank holdings. Although not being used as a standard monetary system anymore, foreign reserves still hold tons of gold in 2022. Calculated in September 2021, data showed that there were more than 31,695 tons of reserves around the world.
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How Much Gold Do Central Banks Hold in 2022?
The gold standard has fluctuated tremendously over the past few years. However, not having unlimited access to it still makes this precious metal highly valuable in many countries. As of 2022, central banks around the world valued gold holdings at 35,500 metric tons.
Countries with the Largest Gold Reserves in 2022
The United States
Largest Gold Reserves According to the World Gold Council
There are only a handful of countries with the largest gold reserves in the world, as stated in the section above. We’ll check out the stock percentage they hold individually below.
1. United States
The U.S has a gold reserve of over 8,000 metric tons of holdings held at Fort Knox situated in Kentucky. To this date, America has gold reserves more significant than any other foreign reserves in the world. In fact, it also has one of the highest gold holdings in various foreign reserves.
With over 75 percent in its foreign reserves, Germany is second to being one of the largest gold reserves worldwide. This fast-paced European country transferred and did acquire over 675 tons of gold from the Federal Reserve Bank in New York back to its vaults in 2017.
The ex-governor of the European Central Bank claimed that gold reserves added safety against fluctuating currency rates. Likewise, Italy also maintained a large number of gold reserves in the country over the years. Central banks in European states also share notions similar to the ex-governor, continuing to consider gold a national currency.
The central banks in France hold over 65 percent of foreign reserves. On top of that, the Banque de France is one of the many people’s trusted banks to house gold and other precious metals. The gold owned by the country exceeds 2,400 tons. However, France also exports gold to other countries, but not as frequently as before.
Further below, we have Russia, with statistics claiming the country to hold over 2,200 tons of gold as of 2022. The Russian Federation is also one of the largest investors in gold reserves, mainly after overtaking China in 2018. Russia has also sold a considerable amount of gold to U.S Treasuries in order to exchange the value gold makes for cash.
How Does Inflation Affect Gold Reserves?
The value of gold is determined by its limited supply. As a result, governments worldwide see an increase in gold prices during heavy inflation. Central banks investing in gold tend to cause this phenomenon, too, as there is a need for more money to be printed to afford the rare metal. The country’s currency is, therefore, affected negatively, whereas gold costs more and more.
Gold has a substantial impact on the economy of different nations. This rare metal can bring stability to countries when invested in it but also cause fluctuations in currency due to its limited supply.
The most gold held in 2022 goes to the United States, followed by other reserves. More gold has been mined daily in recent years, increasing its price as well. Gold’s inverse relationship with the U.S dollar makes it all the more valuable for trade.