The 10 Biggest Gold-Hoarding Countries 

In The World

Gold is well off its 52-week high of $1.916.20 per ounce, as investors looking to avoid risks opted for dollars over commodities. But central banks have been buying gold in an attempt to diversify from their dollar and euro holdings.  Earlier this year, Mexico and China's central banks went on a gold buying spree.Venezuela has begun repatriating its gold.
A World Gold Council report showed that central banks had become net buyers of gold. Purchases are at a 40-year high, and rose to148.4 tones in the third quarter. Most of the demand was driven by emerging markets. We put together a list of the countries with the biggest official gold holdings as reported by the World Gold Council.

#10 India

Reserve Bank of India, Mumbai

Official gold holdings: 557.7 tonnes Percent of reserves: 9.0%
India's gold reserves climbed to $28.05 billion, but the country's central bank gold holdings lag those of major economies. The RBI is known to buy IMF gold and considers gold to be a safe investment, but rarely comments on its plans to buy gold.

#9 Netherlands

De Nederlandsche Bank, Amsterdam
s

Official gold holdings: 612.5 tonnes Percent of reserves: 61.0%
Between 1991 - 2011 the Dutch National Bank (DNB) has sold 1,100 tones of gold. But a spokesman for the bank said it stopped loaning out gold in 2008. The bank considers gold to be "the ultimate reserve and anchor of trust in times of financial crisis," and holds it for diversification purposes. Nout Wellink, president of the Dutch central bank has previously said that the DNB doesn't intend to sell gold.

#8 Japan

Bank of Japan, Chuo, Tokyo

Official gold holdings: 765.2 tonnes
Percent of reserves: 3.3%
Earlier this year, the Bank of Japan sold gold to pump ¥20 trillion into the economy to calm investors after the tsunami and resulting nuclear disaster in Japan. Meanwhile, the country's gold exports (which include private exports) are expected to reach 100 metric tonnes in 2011.

#7 Russia

Bank of Russia, Moscow
Image: Wikimedia Commons

Official gold holdings: 851.5 tonnes Percent of reserves: 8.6%
The Bank of Russia bought 15 tons of goldin third quarter, part of a long-term plan to accumulate gold. It has however been buying from the domestic market.

#6 Switzerland

Swiss National Bank, Bern

Official gold holdings: 1,040.1 tonnes
Percent of reserves: 14.3%
Between 2000 - 2005 the Swiss National Bank sold 1,300 tonnes of gold which was in part tied to the launch of the euro. In 2010, its gold reserves reached a quarter of its total reserves.

#5 China

People's Bank of China, Beijing

Official gold holdings: 1,054.1 tonnes
Percent of reserves: 1.7%
The People's Bank of China is looking to buy more gold as it looks to hedge itself against property bubbles, inflation, and currencies like the euro and dollar. China buys gold from its domestic market but doesn't always immediately put it towards its reserves.

#4 France

Banque de France, Paris

Official gold holdings: 2,435.4 tonnes
Percent of reserves: 71.0%
France is in a pact with other European central banks to limit gold sales. The 19 signatories sold nearly 10 tonnes of gold in the first year of their new agreement (Sept. 2009 - Sept. 2010).

#3 Italy

Banca d'Italia, Rome

Official gold holdings: 2,451.8 tonnes
Percent of reserves: 72.2%
Italy's gold holdings are one-tenth of the estimated total bailout it would need. Earlier this year Italian banks were looking to the Bank of Italy to buy gold and bolster their balance sheets ahead of stress tests.

#2 Germany

Official gold holdings: 3,401.0 tonnes
Percent of reserves: 72.6%
The Bundesbank,Germany's central bank sold 150,000 ounces of gold , according to the IMF. The gold was sold to the ministry of finance to mint commemorative coins. Germany has denied reports that European officials will use their gold holdings to boost the EFSF.

#1 United States

Federal Reserve Eccles Building, Washington D.C.

Official gold holdings: 8,133.5 tonnes
Percent of reserves: 75.5%


Central bankers around the world may be reacting to the weakness of the dollar with their gold purchases.
may be reacting to the weakness of the dollar