20 countries that own 88% of the world’s gold
Just 20 countries world’s gold.
According to the World Gold Council, demand reached 1,290 tonnes in Q1, a 21% increase year-on-year, making it the second largest quarter on record. This increase was driven by huge inflows into exchange traded funds (ETFs) – 364 tonnes – fuelled by concerns around the shifting global economic and financial landscape.
Higher prices and industrial action in India pushed global demand for jewellery down (-19%), while total bar and coin demand was marginally higher (+1%). Central banks remained strong buyers, purchasing 109 tonnes in the quarter. Total supply increased 5% to 1,135 tonnes. Hedging by producers (40 tonnes) supported an increase of 56 tonnes in mine supply, although countered by a marginal decline in recycling.
The key findings from the report first quarter of 2016 are as follows:
- Overall demand for Q1 2016 increased by 21% to 1,290 tonnes, up from 1,070 tonnes in Q1 2015.
- Total consumer demand was 736 tonnes down 13% compared to 849 tonnes in Q1 2015.
- Global investment demand was 618 tonnes, up 122% from 278 tonnes in the same period last year.
- Global jewellery demand fell 19% to 482 tonnes versus 597 tonnes in the first quarter of 2015.
- Central bank demand dipped slightly to 109t in Q1 2016, compared to 112 tonnes in the same period last year.
- Demand in the technology sector fell 3% to 81 tonnes in Q1 2016.
- Total supply was up 5% to 1,135 tonnes in Q1 2016, from 1,081 tonnes in the first quarter of 2015. Mine supply was up 8% to 774 tonnes.
Gold reserves are not always physically stored in the named country. For example Germany has a large portion of its reserves stored in the USA, the UK and France.
Also, the practice of gold leasing central banks can call into question accuracy of the reported figures.
The map does not list all gold holders: countries which have not reported their gold holdings to the IMF in the last six months are not included, while other countries are known to hold gold but they do not report their holdings publicly. by the
A gold reserve is the quantity of gold held by a central bank currency.
Historically a country’s gold reserve was central to its financial well-being and status. However the importance of gold in this regard has declined as the amount of gold held by central banks has decreased and for the most part gold reserves do not form a significant portion of the central bank’s
to support the
of foreign reserves.
Despite this, gold is still a very important commodity and continues to play a central role in the world’s economy. This was most recently evident in the aftermath of the 2008 crash when central banks reversed a 20 year trend of selling their gold and instead started buying gold in an effort to protect their nation’s wealth.