Major central banks from the U.S. to Europe are aggressively investing in gold, which is obviously the “new reserve currency” in the world, according to a survey by financial information portal 24/7 Wall Street, cited by MarketWatch.
The substantial increase in gold price speaks for itself, as the gold investments in the third quarter had a yield of 11.1%. Gold prices in the first nine months increased by 16% compared to the same period last year.
The portal 24/7 Wall Street has analyzed the top 10 largest holders of gold, which, surprisingly, does not coincide with the 10 largest economies in the world.
Thus, two relatively small countries, Switzerland and the Netherlands, have large reserves of gold, occupying positions six and nine, respectively in the rankings, even though if their GDPs are only on the 19th and 17th place in the world.
According to the Central Banks Gold Agreement concluded with large European countries many countries with significant savings should sell gold, but they do not do it.
United Kingdom, with a GDP of $2,430 billion, is the seventh largest economy in the world, but according to Gold rankings, is on the 17th place, representing only 15.9% of its foreign reserves.
Another exception is Brazil, which is ranked sixth in the world with a GDP of $2,500 billion, but has only 33.6 tons of gold, and 0.5% of its foreign reserves. Brazil is positioned in a surprising 52nd place among global gold holders.
IMF is the third largest holder of gold in the world with 2,814 tons, and the European Central Bank is behind India, ranked 11th, with 502 tons, representing 32.3% of its reserves.
Recent purchases of gold were made by the central banks of Russia, Turkey, Ukraine and the Kyrgyz Republic.
According to the World Gold Council, this metal is no longer only a shield against inflation, but also a major element of protection in the global race to devaluation of currencies, even if consumer prices are relatively stable.
Board analysis showed that an increase of 1% of money within six months in the U.S., Europe, India and Turkey, tends to raise the price of gold by 0.9%, 0.5%, 0.7% , and 0.05%, respectively.
United States, the largest economy in the world with a GDP of $15,000 billion, have the largest reserves of gold, 8,133 tons, followed by Germany, the fourth largest economy, with 3,395 tons of gold.
Italy, the eighth largest world economy, is the third largest holder of gold, 2,451 tons, followed by France, the fifth largest economy, with 2,435 tons of gold.
China only occupies fifth position in the top of gold holders, with 1,054 tons, even though it is the second largest world economy, with a GDP of $7,300 billion.
Top 10 of largest holders of gold is completed by Switzerland, Russia, Japan, the Netherlands and India.
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