Top 10 countries with the most gold reserves

India and China consume the most gold globally, yet they don't make the top 5 in this list of countries hoarding the precious metal, as per Business Insider.

10. India

Official gold reserves: 557.7 tons

Gold-to-foreign-reserves ratio: 7.3%

India's gold imports are predicted to continue declining for the third consecutive year, while the Reserve Bank of India monitors imports. In June, the Indian central bank relaxed credit regulations, allowing banks to seize gold-backed assets on condition that 'this gold is not intended for agricultural purposes.'

The government is currently endeavoring to minimize public gold buying activities to alleviate the severe trade deficit. Reserve Bank of India Governor - Raghuram Rajan suggested that the country might settle debts with gold.

9. Netherlands

Official gold reserves: 612.5 tons

Gold-to-foreign-reserves ratio: 54.3%

A significant portion of the Netherlands' gold reserves is held in the US, with smaller portions in Canada and the UK. Approximately 10% of the reserves are estimated to be held in Amsterdam. Earlier this year, the Netherlands announced plans to repatriate some of the gold held abroad.

8. Japan

Official gold reserves: 765.2 tons

Gold-to-foreign-reserves ratio: 2.5%

In 1950, Japan held only 6 tons of gold. The country's gold reserves surged for the first time 9 years later, when the institution bought 169 tons in 1958.

In 2011, the Bank of Japan sold gold to inject over $19 billion into the economy, aiming to stabilize investors after the dual disasters of earthquakes and tsunamis.

7. Switzerland

Official gold reserves: 1,040.0 tons

Gold-to-foreign-reserves ratio: 8.0%

In July, the Swiss bank reported a profit of $17.7 billion in the first half of the year, partly due to the recovery in gold prices. In 1997, there were numerous proposals suggesting that the country should sell part of its gold reserves as they were no longer considered 'essential tools for monetary policy.'

In 2000, the country began selling 1,300 tons of surplus gold under the Central Bank Gold Agreement (CBGA). This was a commitment made by the European Central Bank on behalf of 15 Central Banks to control the amount of gold sold annually. CBGA 1 was effective from 27/09/1999 to 26/09/2004, CBGA 2 from 27/09/2004 to 26/09/2009, and CBGA 3 from September 2009 to September 2014. In Switzerland, 1,170 tons were sold under CBGA 1 and 130 tons under CBGA 2. Switzerland stated that it would not sell gold under CBGA 3.

6. China

Official gold reserves: 1,054.1 tons

Gold-to-foreign-reserves ratio: 1.1%

China officially surpassed India to become the largest consumer gold market in 2013. However, gold still maintains a relatively low proportion in China's foreign exchange reserves at 1.1%, compared to the global average of 10%. Gold accumulation is a necessary task for this country, as the Beijing government aims to internationalize the yuan, transforming the domestic currency into a reserve currency.

5. Russia

Official gold reserves: 1,094.7 tons

Gold-to-foreign-reserves ratio: 9.7%

Russia increased its gold reserves in February 2014, surpassing both Switzerland and China. In August, the Central Bank of Russia decided to continue purchasing gold, diversifying away from the US dollar and euro after facing numerous Western sanctions. The gold reserves in the Central Bank of Russia surpassed the 1,000-ton mark for the first time in the third quarter of 2013.

4. France

Official gold reserves: 2,435.4 tons

Gold-to-foreign-reserves ratio: 65.1%

France sold 572 tons of gold in CBGA 2. Additionally, France transferred about 17 tons to the International Monetary Fund in 2004 to settle the agreement to purchase shares of the bank. France stated it has no intention of selling gold in CBGA 3. According to the central bank, the institution will not sell gold reserves due to confidence in its capacity and diversification, which may somewhat absorb fluctuations in the balance sheet.

3. Italy

Official gold reserves: 2,451.8 tons

Gold-to-foreign-reserves ratio: 67%

Italy no longer sells gold under CBGA 1 and 2, nor has it announced plans to sell gold under CBGA 3. However, in 2011, banks in Italy anticipated the Italian central bank to purchase gold and strengthen the balance sheet ahead of bank 'health' stress tests.

2. Germany

Official gold reserves: 3,384.2 tons

Gold-to-foreign-reserves ratio: 68.4%

Germany reduced its gold reserves last October. Every year, the Bundesbank sells 6-7 tons of gold to the country's Ministry of Finance. The country sold gold in CBGA 1 and 2 for the purpose of minting commemorative gold coins. In the first year of CBGA3 (2008-2009), the Bundesbank sold about 6 tons.

1. United States

Official gold reserves: 8,133.5 tons

Gold-to-foreign-reserves ratio: 71.9%

Since 1952, the United States has been the world's largest gold reserve holder, with reserves reaching up to 20,663 tons. Gold reserves first dropped below the 10,000-ton mark in 1968.

As per Investment Forum

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Reference: Mytour Travel Handbook