Germany is reportedly repatriating gold it has stashed with the New York Fed and the Bank of France, and some policymakers want to bring back all their gold in case the financial crisis worsens.
People continue to debate whether gold is or should be considered money.
However, this hasn't kept the world's central banks from increasing their gold reserves.
The World Gold Council estimates that central banks have purchased 500 tons of gold in 2012, up from 465 tons last year. Analysts attribute some of the support in gold prices to these central bank gold purchases.
Global gold reserves increased to 31,575.1 tons as of January 2013. We highlight the ten countries with the biggest official gold holdings as reported by the World Gold Council . We also included the percent of foreign reserves they possess in gold.
Note: CBGA refers to the Central Bank Gold Agreements. The first Agreement (CBGA 1) ran from September 27, 1999 to September 26, 2004. The second Agreement (CBGA 2) ran from September 27, 2004 to September 26, 2009. The third Agreement (CBGA 3) will run for five years from September 2009.
#10 India
Official gold holdings: 557.7 tonnes
Percent of foreign reserves in gold:
10.3 percent
The Reserve Bank of India is known to buy IMF gold and considers gold to be a safe investment, but rarely comments on its plans to buy gold.
Source: World Gold Council
#9 Netherlands
Official gold holdings: 612.5 tonnes
Percent of foreign reserves in gold:
60.6 percent
Back in 1999, the Netherlands announced under the Central Bank Gold Agreement (CBGA1) that it would sell 300 tonnes of gold during the five years, but only managed to sell 235 tonnes.
Under CBGA2 (2004/2005 –'08/'09) it said it would sell a total of 165 tones (which included the 65 tonnes left over from CBGA1), and it announced no sales under CBGA3 (from 2008/2009 – '13/'14).
Source: World Gold Council
#8 Japan
Official gold holdings: 765.2 tonnes
Percent of foreign reserves in gold:
3.3 percent
Japan's gold reserves were at just 6 tonnes in 1950, and its central bank registered its first serious jump in gold holdings in 1959, with purchases increasing by 169 tonnes from the previous year.
In 2011, the Bank of Japan sold gold to pump ¥20 trillion into the economy to calm investors after the tsunami and nuclear disaster.
