Gold Cold War: Eastern Countries’ Reserves in 2019

Fintoism Gold Reserves Eastern Countries

Gold remains one of the most popular assets serving as a store-of-value. Keeping that in mind, it is crucial for all countries to keep up a healthy gold reserve.  

The following Eastern countries currently have the largest gold reserves. The big question is whether they will ever challenge for the top position that is currently claimed by the United States.  It is worth noting most of these regions also hold vast amounts of silver reserves today.

#1 Russia 

It is a well-known secret that the US and Russia do not see eye-to-eye. For the time being, Russia has no plans to do anything about that situation, at least from a financial perspective. Should that outlook on the bullion cold war ever change, the country is in a good position regarding its gold reserves.

The central bank of Russia currently holds 2,219 metric tonnes of bullion. That equals to 20% of the bank’s total reserves coming in the form of physical gold. 

It is also worth noting the Russian central bank is the largest buyer of gold for several years now. So much even that it successfully overtook China in 2018. It is well underway to catch up to both France and Italy as well, assuming this trend continues. 

#2 China

There are genuine concerns as to how China could pose a financial threat tot he Western world at some point. It is difficult to determine how the Asian powerhouse will plan to do so. Using its gold reserve sis one option to explore, albeit they are not necessarily all that significant. 

The most recent findings indicate China’s central bank holds 3% of its total reserve sin bullion. A total of 1,937 metric tonnes of gold is under their control as of right now. This is slightly behind Russia, and represents less than 25% of the Federal Reserve’s gold reserves. 

#3 Japan

Many people view Japan as the home of technological innovation. This also expands into finance, as the country has seen an influx of novel payment methods to make life easier. Contrary to China or Russia, Japan doesn’t seem inclined to disrupt the US Dollar in any significant way. 

That said, the domestic central bank is all too aware diversification of its assets is crucial. As such, it owns 765 metric tonnes of gold, which is not necessarily a spectacular figure. Despite this figure being nearly three times as low as China’s bullion reserves, it still represents 3% of the Japanese central bank’s reserves. 

#4 India

Recent attempts to go cashless in India have left a sour taste in many people’s mouths. The government will need to come up with a different plan to rectify the situation. It will not pose a threat to Western finance on its own, yet colluding with the other Eastern entities on this list could yield some potentially dangerous results. 

The most recent statistics indicate India’s central bank holds 618 metric tonnes of bullion in 2019. That represents 7% of the bank’s total reserves, which makes it more “valuable” compared to China’s or Japan’s reserves. Keeping in mind how not all central banks increase their bullion holdings ever year, there could be some interesting developments over the coming years. 

Information provided by Statista.

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