For today’s post, I am going to take a step away from the topic of gold mining and dig a little deeper into our third precious metal — gold. A lot has been written about gold and the conflicts and uncertainties surrounding it. This is because its value is so tied to our financial system. As such, it is no surprise that many articles have been written on this topic. What makes these articles more interesting to read than your average news article? The people writing them.
Let me give you an example. In his new book, Who Owns Gold?, author Barry Eichengreen covers all aspects of who owns gold in detail. From personal experiences as an economist at the world’s largest bullion dealer, through to research published by top universities around the world, Barry shares everything he knows in this fascinating read (at least for those interested in this subject). Here are five interesting facts about who owns most of the world’s gold:
Table of Contents
The World’s Largest Bullion Dealer Is…
The world’s largest bullion dealer is not a government. In fact, the world’s largest private bullion dealers are banks. The list of the world’s top 10 banks that account for nearly half of all gold sales is as follows:
– HSBC Holdings
– JPMorgan Chase & Co.
– Bank of Nova Scotia
– National Australia Bank Limited
– Mitsubishi UFJ Financial Group Inc.
– Credit Suisse Group AG
– Standard Chartered Plc (Formerly HSBC Holdings plc)
– Barclays PLC
– Sumitomo Mitsui Trust Bank Ltd.
– Mizuho Financial Group Inc. (Formerly MUFG Bank Ltd.)
– Industrial and Commercial Bank of China Limited
The World’s Largest Gold Producer Is…
In terms of gold production, Russia is the largest producer. In fact, Russia produces three times more than the second-largest producer, China.
The World’s Largest Gold Reserves Are…
China has the largest amount of gold reserves in the world. With over 2,000 tonnes of gold and 8% of the world’s supply, China certainly has a lot to their name.
For every 10 ounces owned by central banks around the world, there are 1 ounce owned privately.
Only 1 person owns as much privately as Central Bankers collectively. This is because most people don’t own all that much gold privately compared to central banks, but they do still own some significant amounts.
China Owns the Most Physical Gold However…
If you are looking for a chunk of gold to put in your jewelry or as an investment, China is the place to go. They have about 37 percent of the world’s gold reserves (or nearly $1.3 trillion), which does not appear to be decreasing over time.
However, if you are looking for who owns the most physical gold, it is actually Switzerland. They have nearly 10 times more than any other country — 65 percent of the world’s total physical gold reserves.
And this despite being one of the smallest economies on earth with only about .06 billion in GDP per year
There Are Many Private Owners of Large Amounts of Gold
There are many private owners of large amounts of gold. In fact, between 200 and 300 tons of gold is privately owned. This accounts for 10 percent of the world’s total gold supply.
The United States has the most gold in private hands, with China coming in second place.
You Probably Don’t Own Any Gold Unless You Have a Coin Collection
First, it is true that you probably don’t own any gold unless you have a coin collection. The only way to privately own gold is to purchase coins from a private seller.
You might be surprised to hear that the U.S. Mint has sold over 50 billion coins since 1792!
The reason for this is because precious metals are difficult to store and also because coins are more convenient than bullion bars or ingots. People have found it easier to put their money in coins than anything else.
Conclusion
Gold is a valuable asset and it can accumulate to be quite large in value. But, who has the most gold privately?
The World’s Largest Bullion Dealer Is…
The World’s Largest Gold Producer Is…
China Owns the Most Physical Gold However…
There Are Many Private Owners of Large Amounts of Gold
You Probably Don’t Own Any Gold Unless You Have a Coin Collection
FAQ’s
What is the value of gold?
It depends on who you ask.
Typical answers might go something like this:
– Governments control 50% of gold stocks.
– Central banks control around 15% of gold stocks.
– The rest is held by individual investors and the private sector.
In other words, the truth is somewhere in the middle, but certainly not all in one country or party.
So, where are all these golds? Are they in a vault somewhere? No, they are all around us, just not where we can see them.
Who owns gold?
As you can see from the Info, this question is about who owns Gold. I think the answer is very simple in which the person own gold are Government, Central Bank, Banks and lastly individual.
What are the benefits of owning gold?
A huge number of people own gold. This is in large part because of its value as a store of value. A precious metal that can hold its own value over decades is a valuable commodity.
The largest holder of physical gold is undoubtedly the U.S. government with reserves amounting to 8,133 tons or approximately 80% of global supply. In addition to the U.S., China and Russia hold large reserves of gold as well (after selling off much of their holdings).
On the other hand, private individuals are the largest holders of gold ETFs (Exchange-Traded Funds), which track the price of gold on a daily basis. ETFs are holding less than half the total amount of physical gold, but they own about 70% of total demand for bullion bars and coins (more than 4,300 tons).
