6 Comments

  1. Travis Smithers

    I have always found this an interesting topic to how the different countries have gold reserves. I remember reading many years ago how Switzerland was the best-balanced country to debt load and gold backing reserves, and the States was in a much higher debt ratio in comparison.

    Does that still hold true today?

    • Margarita

      Hello Travis,

      Thank you for your comment. Yes, it is still true today. Currently, United States’s government debt to GDP is 104.5% while Switzerland’s is only 34.4%.

      As of April 2016, US is on the 10th place in terms of government debt (Japan is on the 1st place) and Switzerland doesn’t even make the list of top 20 countries with the highest level of government debt.

      In figures, today US government debt is 19,187,387 million US dollars while Switzerland’s is only 232,657 million US dollars (224,426 million Swiss franks)
       

      Switzerland has always been known as financially stable country, including during the two World Wars.
       

      Regarding gold reserves, like I mentioned above, Switzerland has more gold per capita than any other country in the world.
       

      If want to know more look below:

      US statistics: http://www.tradingeconomics.com/united-states/indi

      Switzerland statistics: http://www.tradingeconomics.com/switzerland/indica

  2. Kevin

    It’s not much of a surprise that the United States was the largest gold holder, especially with the Gold Reserve Act back in 1934. They increased the price of gold from $20.67 to $35 an ounce, which interested a number of foreign countries to sell gold to the US. It definitely helped the US build a gold reserve, even during a depression.

    • Margarita

      Hello again Kevin,

      Useful to know – didn’t know that. Plus during the Second World War, US was selling war equipment and food to European countries and was payed back with gold! So, by the end of the war, as far as I know, it had about over half of all official gold reserves found in the world at that time!

      Today, US is still ahead of all countries in terms of gold reserves it owns (I guess I should say official gold reserves).

  3. Dejan

    Hello,
    What an interesting list you have there. I guess that just shows how important gold is in the world. It’s like the backbone of the whole economy, if your currency collapses, you still have gold to trade with, which is why so many bigger countries are storing loads of it in the reserves. Do you personally think that the price of gold will go upwards in the next 10 years or will it go the other way ?

    • Margarita

      Hi Dejan,

      Thank you for visiting.

      Given the state that the US dollar is currently in, the world financial system sooner or later, faster or slower, will start to change. And you know, that in times of economic turbulence, people turn to good old tangible assets like buildings, land, precious metals. Don’t need to go too far back for examples – Brexit is a perfect event illustrating such behavior.

      On the other had, if dollar continues to thrive, which I doubt, it won’t affect gold price too much. Of course, like in the course of the last decade, fluctuations in price would be there, but, obviously, like all other tangible assets gold price would never drop to zero or even close to that.

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