In 2023, amid uncertainty about US interest rates and continued geopolitical risks, the metal once again demonstrated its importance by hitting a new record in December.

Visual Capitalist's Bruno Venditti introduces the following graphic, by Sam Parker, displays the top 11 countries by gold reserves as of September 2023, based on data from Central Banks, the Federal Reserve Bank of St. Louis, the International Monetary Fund, the World Bank, and the World Gold Council.

Central Bank Gold Demand

Most of the world's gold is stored in various locations, including central bank vaults, private depositories, and jewelry holdings.

Countries maintain gold reserves for various reasons.

Firstly, gold serves as a stable and dependable store of value, enhancing confidence in a nation's economic stability, especially during times of financial uncertainty.

Additionally, despite the waning relevance of the gold standard, some countries still deem gold reserves crucial for maintaining currency stability.

Moreover, gold's tangibility enables countries to diversify their overall portfolio. Currently, almost one-fifth of all the gold ever mined is held by central banks.