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Visualizing Two Decades of Central Bank Gold Reserve Changes

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Changes in central bank gold reserves

National gold reserves changes over 20 years

Gold-Hoarding Nations: Changing Gold Reserves Since 2000

Gold has long been an important hedge in times of uncertainty, and unlike foreign currencies, equities, or debt securities, its value is not dependent on any company or nation’s solvency.

This has made gold an essential part of many national central bank reserves, especially as the monetary supply of many nations continues to expand and central banks are exploring digital currencies which could be reserve or gold backed.

With gold still making up a large part of many nations’ reserves, how have central banks been managing the precious metal?

Using data from the IMF’s International Financial Statistics, this infographic looks at the top 20 countries by their central bank’s gold holdings and how their national gold reserves have changed since 2000.

European Nations Sold Gold, but Still Hold Plenty

Many European nations started the millennium by reducing their gold holdings. The Euro Area (including the European Central Bank) sold a total of 1,885.3 tonnes over the past two decades, reducing gold holdings by around 15%.

Despite this, European nations like Germany, Italy, and France still retain some of the largest gold reserves, with Italy not having touched their gold at all over the past 20 years.

After the termination of the Central Bank Gold Agreement in July of 2019, the European Central Bank made it clear that gold is still held in high standard by the Euro Area’s nations:

“The signatories confirm that gold remains an important element of global monetary reserves, as it continues to provide asset diversification benefits and none of them currently has plans to sell significant amounts of gold.”
ECB

Small Countries, Big Buyers

While nations across Europe sold off some of their central bank gold reserves, smaller countries like Kazakhstan, Cambodia, Kyrgyz Republic, Belarus, Qatar, and Uzbekistan have been some of the biggest gold purchasers relative to their GDP.

Large Gold Purchases of Six Small Nations

 Central Bank Gold Reserves (tonnes) in 2021Net Change in Gold Reserves (tonnes) since 2000Purchased Gold USD Value (at $1,730/oz)Nominal GDP in USDPurchased Gold as a Percentage of GDP
Uzbekistan*340.6+159.9$8.89B$63.30B14.0%
Kazakhstan390.7+334.7$18.64B$180.72B10.3%
Kyrgyz Republic16.8+14.2$0.79B$8.45B9.3%
Cambodia45.5+33.1$1.84B$28.55B6.4%
Belarus**50.0+40.7$2.26B$60.97B3.7%
Qatar56.7+56.1$3.12B$155.57B2.0%

*Uzbekistan data only available from 2013 onwards
**Belarus data only available from 2002 onwards
Source: IMF World Economic Outlook Database

None of the nations in the table above rank in the top 50 by nominal GDP, however, their central bank reserves have greatly grown in value thanks to their gold accumulation over the past 20 years. Along with this, countries like Uzbekistan are focusing on making gold production and circulation a key part of their economies.

In November of 2020, Uzbekistan introduced a new gold product available at commercial banks to make buying and selling gold more accessible: gold bars weighing 5, 10, 20, and 50 grams in a protective card packaging with a matching QR code for authentication.

As Uzbekistan pushes to become one of the world’s largest gold producers over the next few years, this product reintroduces gold in smaller purchasable amounts for everyday citizens.

A Turkish Delight of Gold Purchases

Since 2017, Turkey has increased gold within their central bank reserves from 116 to 527 tonnes (a 354% increase), while wrestling with rising inflation and a plummeting Turkish lira.

Alongside the central bank’s gold purchases, the Turkish government introduced gold-backed bonds and changes to gold regulations in an attempt to draw out household gold deposits. To further strengthen the nation’s economic independence and cut down gold import costs, Turkey is planning to radically ramp up domestic gold production to 100 tonnes of gold per year.

The country broke records in 2020 with 42 tonnes of gold produced, and the recent discovery of a 3.5M oz gold deposit (valued ~$6B) will help supply the nation’s surging demand for the precious metal.

A Common Trend: Gold is Rising as a Percentage of Reserves

One trend that is common across many nations: gold as a percentage of reserves has risen consistently since Q3 of 2018 as gold’s price has skyrocketed.

Most European central banks have gold reserves above the 50% mark of their reserves despite mostly selling gold over the past two decades. On the other hand, China and India have been aggressively purchasing gold since 2000, and yet gold still remains at single-digit percentages of their total reserves with plenty of room for expansion.

chart of gold as a percentage of central bank reserves

While some major nations’ gold holdings are reaching 70-80% of their reserves, the head of foreign exchange reserves management for the Central Bank of Hungary, Róbert Rékási, doesn’t think that nations are approaching a ceiling for this figure, and that central banks are still willing to increase their gold exposure.

China and Russia’s 20-Year Accumulation

The two nations that have increased their gold exposure the most over these past two decades have been China and Russia, which have purchased 1,553 tonnes (393% increase) and 1,873 tonnes (443% increase) respectively.

These aggressive purchases highlight a potential distancing from a weakening U.S. monetary system. The U.S. dollar was recently overtaken by gold as a percentage of Russian reserves, and has fallen to 25-year lows in global central bank foreign exchange reserves.

As both China and Russia have begun preparing central bank digital currencies, the two nations could be looking to set new monetary standards and strengthen their roles in the world’s evolving financial system.

The Next 20 Years of Gold Reserves

Gold’s value has stagnated over the past few months while bitcoin and equities have taken the spotlight, however, central banks still consider it an essential part of their reserves.

Developing nations and global heavyweights like Russia, China, and India have all been accumulating and prioritizing gold production, and while European countries have sold some gold the past two decades, they still rank among the largest holders of the precious metal.

As central bank digital currencies loom on the horizon, gold still plays an essential role in the composition of national central bank reserves backing these new financial systems, providing a familiar inflation hedge for central banks and investors in these uncertain monetary times.

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Real Assets

Visualizing the Genealogy of Exploration Success

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Mineral Exploration Success

Visualizing the Genealogy of Exploration Success

In the last decade, 63% of all mineral discoveries in the Western world were made by junior explorers. These small companies are the vision of a dedicated few.

It is the people that make a great company, and it is great explorers that make great discoveries. This infographic sponsored by SKRR Exploration shows the incredible experience and knowledge of two leaders in mineral exploration brought together in one new venture.

Two Paths to Exploration Success

According to the common adage, overnight success stories take a long time. Ron Neolitzky and Ross McElroy have traveled two different paths but along their route, they have uncovered vast amounts of mineral wealth in Canada.

Ronald Netolitzky Ross McElroy
  • 1964-67: Graduated from the University of Alberta with a B.Sc and M.Sc. in Geology.
  • 1985: Became President of Delaware Resources and acquired the Snip property.
  • 1986: Struck a gold discovery at the Snip property, which produced 1Moz of gold over its lifetime.
  • 1988: Invested in Consolidated Stikine Resources and drill-tested Eskay Creek, which would go on to produce 3.3Moz of gold and 160Moz of silver over its lifetime.
  • 1990: Sold Eskay Creek stake to International Corona for $67/share as part of an acquisition.
  • 1990: Received the Bill Dennis Prospector of the Year Award.
  • 1993: Purchased 100% of the Brewery Creek property as president of Loki Gold.
  • 1996: Transformed Brewery Creek into a heap-leach operation.
  • 1996: Merged Loki Gold with Baja Gold and Viceroy Gold to create an entity with an annual production of 200Koz of gold.
  • 1996: Received AME’s E.A. Scholz Award for discovery and development achievements.
  • 2003: Acquired the Galore Creek property for Spectrum Gold, later merged with NovaGold Resources and partially sold to Teck Resources for $275M.
  • 2007: Oversaw Yamana Gold’s $577 million acquisition of Viceroy Resources as chairman.
  • 2010: Oversaw Osisko Mining’s $372 million acquisition of Brett Resources as chairman.
  • 2015: Inducted into the Canadian Mining Hall of Fame.
  • 1987: Graduated from the University of Alberta with B.Sc. in Geology.
  • 1987: Joined uranium giant Cameco and worked on the McArthur River discovery in Saksatchewan’s Athabasca Basin, which is now the world’s largest uranium mine.
  • 1989: Worked with French nuclear Company Cogema (now Orano) on the Shea Creek uranium discovery in Saskatchewan, Canada.
  • 1990-99: Managed the Hope Bay Gold Project with BHP Minerals, discovering three high-grade gold deposits.
  • 2007: Joined Fission Energy as VP of Exploration before rising to the rank of COO.
  • 2009: Led the technical team that discovered the high-grade J Zone uranium deposit at Waterbury Lake and sold to Denison Mines.
  • 2012: Used airborne radiometrics and radon in-lake survey technology to discover the Triple R uranium deposit on the Patterson Lake Property, with an indicated resource of 102M lbs of U3O8.
  • 2013: Received the Mining Person of the Year Award from the Northern Miner.
  • 2014: Received the Bill Dennis Award for a Canadian discovery.

This combined experience is coming to bear in one company to uncover Canada’s next mineral frontier.

Bringing Experience Together: SKRR Exploration

SKRR brings together the experience of two great explorers to uncover the next mineral frontier, Saskatchewan. This junior explorer is working on the next great discovery with 6 projects in the Trans-Hudson geological corridor

  • Father Lake Nickel Project: Copper, Nickel
  • Ithingo Project: Gold
  • Irving Project: Gold
  • Cathro Project: Gold
  • Leland Project: Gold
  • Olson Project: Gold
  • Manson Bay: Gold

With a proven location and legacy of exploration success, SKRR is ready to unlock the next mineral frontier in Saskatchewan and continue the tradition of a dedicated few uncovering the next great discovery.

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Real Assets

The World’s Top 10 Gold Mining Companies

Together, the world’s top 10 gold mining companies account for roughly 22% of the share of the total gold market.

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Top 10 Gold Mining Companies

The World’s Top 10 Gold Mining Companies

Unlike paper currency or many other types of assets, gold has maintained its value throughout the ages.

First used by cultures in modern-day Eastern Europe in 4,000 BC to make decorative objects, the metal today represents a global business with operations on every continent, except Antarctica.

The industry is dominated by a select group of majors.

Together, the world’s top 10 gold miners produced 27.48 million ounces (Moz) in 2020, worth approximately $48 billion, according to data from Mining Intelligence.

North America Leading

At a country level, China is the largest producer in the world accounting for around 11% of total global production.

However, no Chinese company appears among the top miners.

RankCompanyHeadquartersCountry2020 Production (Moz)
1Newmont DenverUSA 🇺🇸5.88
2Barrick GoldTorontoCanada 🇨🇦4.84
3PolyusMoscowRussia 🇷🇺2.87
4AngloGold AshantiJohannesburgSouth Africa 🇿🇦2.81
5Kinross GoldTorontoCanada 🇨🇦2.38
6Gold FieldsJohannesburgSouth Africa 🇿🇦2.13
7Newcrest MiningMelbourneAustralia 🇦🇺2.06
8Agnico EagleTorontoCanada 🇨🇦1.73
9Polymetal InternationalSt. PetersburgRussia 🇷🇺1.40
10Harmony GoldJohannesburgSouth Africa 🇿🇦1.38

At the top of the gold mining companies list, Colorado-based Newmont has ownership of mines in Nevada, Colorado, Ontario, Quebec, Mexico, the Dominican Republic, Australia, Ghana, Argentina, Peru, and Suriname.

As the only American company on the list, Newmont produces 21% of the yellow metal poured by the top companies.

Canada, which is known for its mining industry, has three companies on the list; Barrick Gold, Kinross Gold, and Agnico Eagle, producing 32% combined.

Russia, which is expected to become the world’s top producer by 2029, has two companies ranked. Together, Polyus and Polymetal represent 15% of the top miners’ production.

The top 10 players account for ~22% of the total market share, which is anticipated to grow due to increased merger and acquisition activities.

Wealth and Luxury

Over six and a half thousand years after its discovery, more than 90% of the gold mined annually is destined for jewelry, bullion, and coins.

  • Jewelry: 36.83%,
  • Investment: 46.64%,
  • Central banks: 8.58%,
  • Technology: 7.95%

The metal is also used in dentistry, as it is the best material for fillings and crowns since it is easy to insert, and is non-reactive with the human body.

Golden Future

Global production fell by 1% in 2020, the first decline in a decade, according to the World Gold Council.

Some analysts argue the world has reached “peak gold” – which means that the maximum rate of extraction has passed and the production of the metal will continue to fall until, eventually, mining for it shall cease entirely.

Demand, however, shows no sign of slowing down as the golden metal remains firmly synonymous with security, stability, and longevity.

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