Gold is an important asset for many nations around the world. It is a form of currency that can help offset any economic downturn and increase a country’s prosperity.
With the global economy slowing, certain countries are looking to increase their gold reserves. Here are the top 10 countries that hoard the most of this precious metal.
1. China
China is the largest producer of gold in the world and has a total of 11,563 metric tons in its reserves. It is also the most important consumer of the metal in the world.
The country has a manufacturing-based economy and could easily buckle under any economic slowdown, so gold reserves can help to keep its value stable. In addition, it is a safe haven investment and has traditionally held its value in times of crisis.
2. India
India is home to 1.25 billion people, and it’s also one of the biggest gold consumers in the world. Its festival and wedding season is a key driver of global demand for the yellow metal.
Countries around the world keep high levels of gold reserves for various reasons. They want to offset their currency and fight hyperinflation.
Over the past few years, central banks have been net buyers of gold. They added 483 tonnes last year, according to the World Gold Council.
3. Japan
Japan is known around the world for its pristine beaches and stunning landscapes. Its culture is also well-known, including its art and cuisine.
The country is also home to 76 known past-producing gold mines, with five deposits of over 1 million ounces. These include Hishikari, one of the highest-grade tier-one gold mines in the world.
4. South Africa
South Africa has the world’s biggest gold reserves and is home to the oldest bullion coin, the Krugerrand. Mining is a large part of South Africa’s economy and contributes over 29% of the country’s exports.
The first gold rush in South Africa occurred in 1886, when prospectors flocked to the Witwatersrand area, now Johannesburg. It was a catalyst for a series of events that paved the way for the country’s political and social transformation.
The mining industry has seen a steady decline, but gold remains an important sector. Platinum group metals look increasingly lustrous by comparison, and other countries such as Ghana are becoming more attractive destinations for gold producers.
5. Australia
Australia is one of the world’s largest economies and also has the largest gold reserves. Located between the Pacific and Indian oceans in the Southern Hemisphere, it’s also home to a unique flora and fauna including hundreds of kinds of eucalyptus trees and the platypus, kangaroo, koala, pycnantha, dingoes and echidna.
The country’s massive reserves are a huge boon to its economy whenever the price of gold increases. It helps boost trade and balance the country’s trade deficit.
6. Uzbekistan
Uzbekistan is one of the largest gold-producing countries in the world. The country has the fourth-largest known gold reserves and a growing export sector.
The Uzbek economy is based on mining, including copper, uranium, silver and gold. The government has long-term programs aimed at developing and modernizing production.
Although the economy has struggled for many years, President Shavkat Mirziyoyev has managed to improve relations with China, Russia and the United States and boost foreign investment in the ailing state-run sector. The government has also lowered its subsoil use tax rates and introduced a fee for new discoveries of oil, gas and minerals.
7. Mexico
Mexico is home to many ancient civilizations, including the Olmec and Mayans, and has a long history of political struggle. It is also a country where people honor their ancestors through works of art, religious traditions and oral storytelling.
Mexicans have a strong love of gold jewelry. Historically, gold jewelry was worn by the rich and religious leaders of Mesoamerica, and it is still a popular accessory for modern Mexicans.
