The Secret of Global Central Banks' Gold Reserves: Why Are Countries Stockpiling Gold?

Geopolitical tensions and soaring inflation expectations have led central banks worldwide to scramble for gold. The United States holds a dominant 8,133 tons—almost 5,000 tons more than Germany, the second-largest holder. What’s behind this?

Top 5 Gold Reserves Revealed:
USA (8,133 tons) > Germany (3,355 tons) > Italy (2,452 tons) > France (2,436 tons) > Russia (2,332 tons).

At first glance, this ranking seems straightforward, but it actually reflects the struggle for economic influence among major powers—

Why does the U.S. hold so much gold?
After World War II, under the Bretton Woods system, the dollar was linked to gold, prompting the U.S. to accumulate reserves. It still maintains an absolute lead today, despite some experts questioning the purity of certain gold holdings (some of the “old gold” from the Cold War era may have questionable purity).

Why has Russia suddenly ramped up its gold holdings?
In 2019, Russia surpassed China to become the fifth-largest holder. This is part of Putin’s decade-long strategic plan—to reduce reliance on the dollar and mitigate sanctions risks. After the Ukraine conflict, the ruble depreciated, making gold reserves even more critical.

The mystery of China’s gold holdings:
Officially, China reports around 2,010 tons, but transparency is limited. From a major gold producer, China has become a significant gold reserve holder, though actual figures may be seriously underestimated.

The UK’s “gold vault” role:
London’s gold reserves serve as a storage hub for many countries’ gold, acting as an intermediary among central banks. However, countries like Venezuela have been denied access to their gold, and Romania has requested its return—highlighting the political tensions behind these holdings.

The underlying logic is clear: The cracks in dollar hegemony are driving gold prices up. The more gold a country holds, the greater its pricing power becomes.