New Delhi, January 18: A country's gold reserves are essential to maintaining its economic stability since they are a reliable repository of wealth, particularly during difficult economic times. According to Forbes, the gold standard, which was widely embraced in the late 1800s and early 1900s, entailed nations adopting a fixed exchange rate between their money and a predetermined amount of gold in order to link the value of their paper currency to gold. In essence, each unit of currency that was created had a corresponding value in gold, making it possible for anyone to convert paper money into actual gold at this predetermined rate.

Even though gold reserves were formally abandoned in the 1970s, many nations still hold them, and as economic uncertainty grows, so does the need for these reserves. Gold is once again being favoured by central banks as the main safe-haven asset. Even with the shifting nature of the contemporary economy, a nation's gold holdings continue to play a significant role in determining its creditworthiness and overall economic standing. RBI Gold Reserves Rise to 794.64 Tonne at March-End 2023.

Following Are the Top 10 Nations With Largest Gold Reserves:

  1.  United States with world's biggest gold reserves of 8,1336.46 tonnes.

  2. Germany with 3,352.65 tonnes of gold reserves.

  3. Italy with 2,451.84 tonnes of gold reserves.

  4. France with gold reserves of 2,436.88 tonnes.

  5. Russia with 2,332.74 tonnes of gold reserves.

  6. China with gold reserves of 2,191.53 tonnes.

  7. Switzerland has gold reserves of 1,040.00 tonnes.

  8. Japan has gold reserves of 845.97 tonnes.

  9. India is at the 9th spot with 800.78 tonnes of reserved gold.

  10. The Netherlands with 612.45 tonnes of gold reserves.

Why Countries Have Gold Reserve

Countries keep gold reserves for a variety of reasons, not just one. Gold is first and foremost acknowledged as a trustworthy and solid store of value. Countries can reassure themselves of their economic security by hoarding gold, especially during difficult financial times. Sonbhadra, in News For 'Gold Mine Reserve', is Reeling Under Fluorosis; 269 Villages Affected and 13 Deaths So Far.

Furthermore, traditionally, gold has helped to maintain the value of a nation's currency. According to Forbes, some nations continue to view gold reserves as a means of preserving currency stability even if the gold standard is no longer generally used.

(The above story first appeared on LatestLY on Jan 18, 2024 12:43 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).