Image & Illustration by Bankrate
Gold has been a hot commodity in the past few years, as prices seem to soar ever higher. While those returns have been great for gold investors, whether they own the money in a taxable or a gold IRA, the gains have been heavily concentrated in countries that own huge gold reserves.
Here are the top 10 countries with the most gold reserves and which ones have been the biggest buyers recently.
Who owns the most gold reserves?
The United States is the world’s largest holder of gold reserves, with more than 8,100 tonnes of the precious metal, while Germany is a distant second. Below are the other largest owners of gold reserves.
Top 10 countries with the most gold reserves
| Country | Total gold reserves (tonnes) |
| United States | 8,133.46 |
| Germany | 3,351.53 |
| Italy | 2,451.84 |
| France | 2,437.00 |
| China | 2,279.56 |
| Switzerland | 1,039.94 |
| India | 876.18 |
| Japan | 845.97 |
| The Netherlands | 612.45 |
| Poland | 448.23 |
Source: World Gold Council as of Q4 2024
Who’s been buying the most gold recently?
The table above lists the top owners at a specific point in time, but the inflows into gold reserves occur over a period of time, such as during a quarter. The following countries were the largest net buyers of gold during the fourth quarter of 2024.
Top 5 countries buying the most gold in Q4 2024
| Country | Gold purchases (tonnes) |
| Poland | 28.53 |
| India | 22.54 |
| China | 15.24 |
| Kyrgyzstan | 12.17 |
| Uzbekistan | 8.71 |
Source: World Gold Council as of Q4 2024
Why do countries hold gold reserves?
While the world no longer uses the gold standard to back its currencies, the world’s central banks maintain gold reserves because gold can help them manage their own currencies and keep an orderly economy, reining in inflation and reducing unemployment. Gold offers other benefits to central banks:
- Hedge against inflation: Because the supply of gold cannot be increased quickly, it acts as a hedge against inflation. Gold is an asset that is priced internationally, so even if a country is mismanaged and suffers significant inflation, gold will hedge that inflation and will rise, as measured in the domestic currency, as that currency undergoes inflation.
- Creates confidence in a country: A country with gold reserves may enjoy greater international confidence in its financial and economic management.
- Diversification from the U.S. dollar: The U.S. dollar dominates trade and many countries hold dollars as a result. But gold tends to move inversely to the dollar, offering a natural diversification for owners of dollars.
- Recognized store of value: Gold is a recognized store of value that has a long history, so it’s internationally accepted as valuable.
Countries may hold gold reserves for other reasons specific to their situation, such as creating greater economic stability where that has traditionally been lacking, perhaps. While individual investors aren’t purchasing gold for the same reasons as central banks, they may also consider purchasing gold bullion, too — here are the most popular gold coins.
Bottom line
Investors looking to own gold in their own portfolio should think carefully about the best way to invest in it. Gold ETFs can allow you to invest in the physical commodity at the spot price and receive full market value when it’s time to sell, making it an attractive way to invest in gold.
Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation.
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