LET’S CHECK WHERE INDIA IS RANKING IN WORLDS HIGHEST GOLD RESERVING COUNTRIES-LIST BY FORBES

Many of us are likely familiar with the reports or articles discussing substantial gold reserves held by numerous countries globally, India included. This precious metal holds significance not just for its cultural and financial importance but also serves as a crucial element in the economies of various nations.

While we get back to that role later in this article, let us first get to know which countries have the highest Gold reserves in the world, as per a recently revealed list by Forbes.

Forbes List Of 10 Countries With Highest Gold Reserves

Based on assessments from the World Gold Council, the following represents the present standings of nations with the most substantial gold reserves in the final quarter of 2023.

1.USA- 8,133.46 Tones

2.Germany-3,352.65 Tones

3.Italy-2,451.84 Tones

4.France-2,436.88 Tones

5.Russia-2,332.74 Tones

6.China-2,191.53 Tone

7.Switzerland-1040 Tones

8.Japan-845.97 Tones

9.India-800.78 Tones

10.Netherlands-612.45 Tones

Why Do Countries Keep Gold Reserves? 

Numerous Countries across the world uphold gold reserves for a multitude of reasons. Firstly, gold is perceived as a reliable and consistent repository of value. Accumulating gold allows countries to instill faith in their economic resilience, especially during periods of financial unpredictability. Secondly, gold has traditionally played a role in safeguarding the value of a country’s currency. Despite the diminished use of the gold standard, certain countries still view gold reserves as a means to uphold currency stability.

The third rationale is diversification. Gold, being a tangible asset, offers nations the opportunity to broaden their overall portfolio. Through this diversification, the vulnerabilities arising from fluctuations in the value of other assets are mitigated.

Last but not least, the inverse correlation with the US dollar contributes to why countries include the yellow metal in their reserves. Gold tends to gain value as the US dollar weakens.

Due to this mechanism, central banks, including the Reserve Bank of India (RBI), can safeguard their reserves during periods of market upheaval. Gold reserves play a role in international trade and finance, occasionally being utilized by nations to offset trade imbalances or serve as collateral for loans. The presence of gold reserves holds the potential to enhance a nation’s creditworthiness and standing within the global financial system. Additionally, in times of crisis, gold serves as a hedge, offering protection against inflation and currency devaluation, often experiencing appreciation during economic downturns and geopolitical instability.

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