• Skip to primary navigation
  • Skip to content
  • Skip to footer
StoneX®

Trade Futures, Spreads and Options with Confidence.

Top Navigation

  • Open a Futures Account
  • Sign Up
  • Log in
  • 1.800.800.3840

Primary Navigation Menu

  • About
    • Who We Are
    • Services
    • Risk Disclosure
    • COVID-19
  • Trade
    • Broker-Assisted
    • Self-Directed / Online
    • Request Pricing
  • Hedge
    • Ag Marketing Plan
    • WASDE Analysis
    • Grain Resources
    • Livestock / Dairy Resources
    • Request Pricing
  • Invest
    • Automated Strategies
    • Managed Futures
    • Request Pricing
  • Advisories
    • GENERAL / FUNDAMENTAL
      • DT Newsletter
      • Insider Market Advisory
      • Turner’s Take Newsletter & Podcast
    • TECHNICAL ANALYSIS
      • The Cullen Outlook
      • Data Feed Trade
      • Jarboe Trading Journal
      • Trade Spotlight
    • AG MARKETING
      • Cattleman’s Advisory
      • Technical Ag Knowledge
      • Turner’s Take Ag Marketing
    • THIRD-PARTY RESOURCES
      • CFRN
      • Moore Research Center, Inc. (MRCI)
      • OptionWorks®
      • TASMarketProfile.com
  • Education
    • CME Group Resource Center
    • CME Group Offers
    • Small Exchange Resources
    • Guides
    • Frequently Asked Questions
    • Order Entry Handbook
  • Blog
    • Futures 101
    • Ag Marketing
    • Tips & Strategies
    • Trading Advisories
  • Resources
    • Trading Software
    • Quotes and Charts
    • Futures Calendars
    • Contract Specifications
    • Margin Requirements
    • Futures Calculator
  • Accounts
    • Apply
    • Access My Account
    • Funding
  • Contact
 

Who Owns the World’s Gold?

June 7, 2019 by Daniels Trading| Futures 101

Gold has been a premium asset for centuries, acting both as a store of wealth and a means of exchange. Whether used in specie, a currency peg, or debt collateral, it has always been synonymous with prosperity. Subsequently, gold is an attractive asset to central banks, governments, and financial institutions around the globe.

The World Gold Council (WGC) estimates that about 190,000 metric tons of bullion have been mined over the course of human history ― a relatively small figure. Given its limited supply, the question of “who owns the world’s gold?” is an important one.

International Gold Holdings

Since the early 1970s, gold has not functioned as the backbone of the global monetary system. When the U.S dollar was withdrawn from the gold standard in 1971, the Bretton Woods monetary system collapsed, officially ending the dependence of international commerce on bullion.

Although gold no longer serves as a currency peg, governments and central banking authorities remain committed to stockpiling gold as a store of wealth. As of year-end 2017, the world’s top 10 gold proprietors were:

Country/Institution  Stocks (tons)
United States 8,133.5
Germany     3,373.0
International Monetary Fund (IMF) 2,814.0
Italy     2,451.0
France   2,435.9
China 1,842.6
Russia 1,778.9
Switzerland 1,040.0
Japan 765.2  
Netherlands 612.5

Taking a quick look at this table, two observations immediately jump out as proof of gold’s global financial importance. First, two of world’s top five gold producing nations (Australia and Canada) didn’t have large enough reserves to make the list. Second, the International Monetary Fund isn’t a country; it enjoys no military or governmental protections. The IMF exists solely as a global banking giant and functions as an independent entity reliant upon bullion.

Central Banks, ETFs, and the Public

It’s no secret that central banks are big fans of acquiring gold. Because gold is a viable hedge against systemic and financial risk, stockpiling bullion is better than acquiring huge amounts of fiat currency.

The institutional gold hoarding trend has been historically evident, with central banks around the world periodically padding their reserves. Recently, for the year 2018, central banking authorities purchased 651.6 metric tons, the most since 1967. The leaders in this frenzy were the central banks of the United States, Russia, Turkey, Poland, and India.

In addition to central banks, exchange trade funds (EFTs) also actively accumulate gold. For physically backed ETFs, securing gold reserves is an integral part of ensuring the fund’s security. Here are the two largest and their respective bullion holdings:

Fund Total Reserves Ounces Per Share
SPDR Gold Trust 24 million ounces 0.0946
iShares Gold Trust   8.8 million ounces 0.0096

Despite central bank and ETF bullion stocks, the largest buyers of physical gold are individual people ― specifically, purchasers of jewelry. More than 2000 tons of gold each year is converted to jewelry before being sold to the public. Among all of the world’s citizens, it’s estimated that the people of India hold the largest amount of bullion, about 22,000 tons.

Due to gold being in finite supply, concerted buying from central banks, ETFs, and the public can drive prices significantly higher. Of course, the opposite is also true: Large block sales can lead to a flood of bullion on the open market. As with most commodities, supply and demand forces rule when it comes to asset pricing.

Getting Started with Gold Futures

Trading gold futures offers many advantages to market participants. Holding physical bullion can be a hassle because storage fees and asset security are major concerns. In addition, ETF offerings feature considerable maintenance costs and per trade fees. Conversely, gold futures contracts offer supreme liquidity and leveraging options for risk appetites of all kinds.

A great place to get started in bullion is by reading the gold futures overview available at Daniels Trading. Featuring product specifications, quick facts, and current market outlooks, it’s a rock-solid jumping off point into the precious metals trade.

New call-to-action

Filed Under: Futures 101

About Daniels Trading

Daniels Trading is division of StoneX Financial Inc. located in the heart of Chicago’s financial district. Established by renowned commodity trader Andy Daniels in 1995, Daniels Trading was built on a culture of trust committed to a mission of Independence, Objectivity and Reliability.

Risk Disclosure

The StoneX Group Inc. group of companies provides financial services worldwide through its subsidiaries, including physical commodities, securities, exchange-traded and over-the-counter derivatives, risk management, global payments and foreign exchange products in accordance with applicable law in the jurisdictions where services are provided. References to over-the-counter (“OTC”) products or swaps are made on behalf of StoneX Markets LLC (“SXM”), a member of the National Futures Association (“NFA”) and provisionally registered with the U.S. Commodity Futures Trading Commission (“CFTC”) as a swap dealer. SXM’s products are designed only for individuals or firms who qualify under CFTC rules as an ‘Eligible Contract Participant’ (“ECP”) and who have been accepted as customers of SXM. StoneX Financial Inc. (“SFI”) is a member of FINRA/NFA/SIPC and registered with the MSRB. SFI does business as Daniels Trading/Top Third/Futures Online. SFI is registered with the U.S. Securities and Exchange Commission (“SEC”) as a Broker-Dealer and with the CFTC as a Futures Commission Merchant and Commodity Trading Adviser. References to securities trading are made on behalf of the BD Division of SFI and are intended only for an audience of institutional clients as defined by FINRA Rule 4512(c). References to exchange-traded futures and options are made on behalf of the FCM Division of SFI.

Trading swaps and over-the-counter derivatives, exchange-traded derivatives and options and securities involves substantial risk and is not suitable for all investors. The information herein is not a recommendation to trade nor investment research or an offer to buy or sell any derivative or security. It does not take into account your particular investment objectives, financial situation or needs and does not create a binding obligation on any of the StoneX group of companies to enter into any transaction with you. You are advised to perform an independent investigation of any transaction to determine whether any transaction is suitable for you. No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior written consent of StoneX Group Inc.

© 2023 StoneX Group Inc. All Rights Reserved

Subscribe To The Blog

Footer

Site Navigation

  • Frequently Asked Questions
  • About Us
  • Customer Reviews
  • Contact Us
  • Futures Blog
  • Open a Futures Trading Account
  • Media Resources
  • Fund Your Account
  • Legal Notices

Contact Us

StoneX Financial Inc.
Daniels Trading Division
230 South LaSalle Suite 10-500
Chicago, IL 60604
+1.312.706.7600 Local / Int'l
+1.800.800.3840 Toll-Free
+1.312.706.7605 Fax

Connect with Us

Trustpilot
Risk Disclosure

The StoneX Group Inc. group of companies provides financial services worldwide through its subsidiaries, including physical commodities, securities, exchange-traded and over-the-counter derivatives, risk management, global payments and foreign exchange products in accordance with applicable law in the jurisdictions where services are provided. References to over-the-counter (“OTC”) products or swaps are made on behalf of StoneX Markets LLC (“SXM”), a member of the National Futures Association (“NFA”) and provisionally registered with the U.S. Commodity Futures Trading Commission (“CFTC”) as a swap dealer. SXM’s products are designed only for individuals or firms who qualify under CFTC rules as an ‘Eligible Contract Participant’ (“ECP”) and who have been accepted as customers of SXM. StoneX Financial Inc. (“SFI”) is a member of FINRA/NFA/SIPC and registered with the MSRB. SFI does business as Daniels Trading/Top Third/Futures Online. SFI is registered with the U.S. Securities and Exchange Commission (“SEC”) as a Broker-Dealer and with the CFTC as a Futures Commission Merchant and Commodity Trading Adviser. References to securities trading are made on behalf of the BD Division of SFI and are intended only for an audience of institutional clients as defined by FINRA Rule 4512(c). References to exchange-traded futures and options are made on behalf of the FCM Division of SFI.

Trading swaps and over-the-counter derivatives, exchange-traded derivatives and options and securities involves substantial risk and is not suitable for all investors. The information herein is not a recommendation to trade nor investment research or an offer to buy or sell any derivative or security. It does not take into account your particular investment objectives, financial situation or needs and does not create a binding obligation on any of the StoneX group of companies to enter into any transaction with you. You are advised to perform an independent investigation of any transaction to determine whether any transaction is suitable for you. No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior written consent of StoneX Group Inc.

© 2023 StoneX Group Inc. All Rights Reserved

  • Risk Disclosure
  • Privacy Policy
  • California Residents Privacy Notice
  • Terms of Use
  • Back to top