With more than 36,000 metric tons of reserves, or about a fifth of the entire mined, central banks know something we should also know: Gold is the ultimate safety net. Since 2009, these institutions have been net buyers of the precious metal, and in the last decade alone they have absorbed one in every eight ounces of gold produced globally.
If these institutions are buying gold, shouldn’t that give you an idea of where your own portfolio should go?
While fiat currencies can be printed at will (and we’ve seen a lot of that lately), gold remains a limited resource. I think this makes it the asset to go for during economic uncertainty. Countries around the world have understood this and are buying gold en masse.
Here’s a look at the ten countries that have accumulated the most gold over the past decade, based on data provided by the World Gold Council (WGC):
10. Hungary – 91.4 tons
The National Bank of Hungary has held gold since its establishment in 1924. Lately, it has been making serious efforts to increase its stock. With 110 metric tons of reserves, Hungary is now the Central and Eastern European country with the most gold per capita.
9. Qatar – 96.3 tonnes
Qatar considers gold a safe investment, especially in times of economic uncertainty. In recent years, Qatar’s gold purchases have skyrocketed, with holdings surpassing 100 tonnes by the end of 2023. For a country that was built on oil and gas wealth, it is clear that gold is a reliable backup plan.
8. Singapore – 101.5 tonnes
Singapore is no stranger to gold, even though it has to import every ounce of it. This year, it made a historic decision to increase its gold reserves to 236 metric tons, the highest level since the city-state’s independence in 1965. A wise choice for a global financial center like Singapore!
7. Uzbekistan – 126.3 metric tons
Uzbekistan is a quiet but powerful player in the gold market. Its reserves have continued to grow, reaching 373 tonnes in 2024. Nearly 80% of Uzbekistan’s total international assets are now placed in the precious metal.
6. Kazakhstan – 132.6 tons
Kazakhstan, one of the world’s leading gold producers, has steadily increased its reserves, which now stand at $23 billion. The country plans to slightly reduce the share of gold in its reserves, but remains a major player in the global market, with 2% of global gold production.
5. India – 291.4 tonnes
The Indian Central Bank has made big moves in the gold market. Its purchases in the first half of 2024 were the highest since 2013, surpassing the previous two years combined. For India, where gold has deep cultural significance, the metal remains at the heart of its economic strategy.
4. Poland – 295.0 tons
The National Bank of Poland has been one of the most aggressive buyers of gold this year, tying with India for the largest purchase in the second quarter of 2024. With current holdings of 16%, Poland has mission to ensure that the precious metal represents 20% of its reserves.
3. Türkiye – 475.6 tons
Over the past decade, Turkey has increased its gold reserves from 116 metric tons to more than 584 tons today. With almost 20% of its reserves in gold, Turkey is one of the main buyers, thanks to its long history of domestic gold ownership and investment.
2. China – 1,210.2 metric tons
China is always one to watch, and it is no slouch in the gold arena. Having added more than 1,200 metric tons over the past ten years, the People’s Bank of China is just behind the United States in the total global ranking. However, it has suspended further purchases in recent months due to rising gold prices.
1. Russia – 1,230.6 metric tons
Russia has added more than 1,200 tons of gold to its reserves over the past decade. In the face of Western sanctions, Russia has prepared, even going so far as to peg its currency, the , to gold – a strategy we have not seen since the days of the Bretton Woods system.
At US Global Investors, we have always viewed gold as a key part of a diversified portfolio, and we believe our gold-focused funds are a great way to participate in this proven asset. After all, if it’s good enough for central banks, shouldn’t it be good enough for you?
