Gold has unique properties, which is one of the reasons this soft, alluring metal became the foundation of global wealth. Every nation has a stash of gold bullion, some a lot more than others. Without a supply of gold bullion, governments could not borrow money on a large scale, nor could they print money if they did not have the equivalent in gold bullion.
Here are some of the countries that are sitting on a lot of gold bullion:
The United States Of America
The USA has more than 8,100 metric tonnes of gold bullion. In the WW II years, the US government stores many nations’ gold reserves, for a price, of course. The Federal Reserve holds around 75% of America’s gold in special vaults that are deep underground. There is much speculation about where the US government stores its gold bullion and we can only summarise that most are held at Fort Knox. For Australian investors, for example, check out the current spot prices at the City Gold Bullion Brisbane dealer, where you can take physical possession of your newly acquired gold bullion. The spot price of gold obviously fluctuates and if you own gold bullion, you should keep an eye on the spot prices.
Germany
The German government keeps its gold reserves at the top-security Deutsche Bundersbank in Frankfurt, which is believed to be just over 3,350 metric tonnes of gold bars. It also holds bullion in New York and London at special central bank vaults. Of course, governments do not advertise their gold reserves or their whereabouts.
Italy
This southern European nation possesses 2,450 metric tonnes of gold bullion and a few years ago, their economy plummeted and other EU states demanded that Italy use some of its gold reserves rather than EU funds. As far as we know, the Italian governments have managed to hang on to their gold reserves and probably have bullion in Switzerland, France, and the United Kingdom.
France
Just behind Italy, France has 2,430 metric tonnes of gold bullion, which may or may not be stored in their country. They somehow managed to get most of their gold reserves out of the country before Hitler invaded in 1940 and most were shipped to the US secretly on disguised ships. Of course, we can never be sure that this information is correct, as governments do not always report accurately.
Russia
Holding more than 2,300 metric tonnes of gold bars puts Russia ahead of China in the gold reserve stakes, which is kind of surprising to many. Russia is believed to have sold US Treasury Bonds to buy extra gold bullion in 2018 and there is no doubt that all of Russia’s gold reserves are inside the country.
If you are thinking about moving your wealth out of stocks and shares and into gold bullion, start by locating a leading gold bullion dealer and check out the performance of gold since the start of the pandemic. Gold has traditionally been used as a hedge against inflation. This is certainly a time when we are seeing a rise in the cost of living across the world.
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