Why GOLD prices are decreasing constantly. ( PART 2)

I hope you all have read the previous article and have some understanding as to why GOLD matters to a Nation’s Economy. Let us now have a look at Top 10 Nations in the World with highest official GOLD RESERVES and then play around with numb3rs and analyze what exactly is happening behind GOLD losing its value day by day :)

Top 10 Nations with highest official GOLD RESERVES according to the report by the WORLD GOLD COUNCIL as of January 2013
Country             Official Gold Reserves(tonnes)   % of Foreign Reserves in Gold
United States                8133.5                                               75.60
Germany                         3391.3                                               72.70
Italy                                  2451.8                                               72.20
France                              2435.4                                               69.20
China                                1051.1                                                    1.70
Switzerland                    1040.1                                                10.50
Russia                                 969.9                                                   9.80
Japan                                   765.2                                                   3.20
Netherlands                      612.5                                                 59.20
India                                    557.7                                                    9.90

Dont just go by percentages. Do a bit of Numb3r Crunching you will understand more :)  Here is how ( calculate the Foreign Reserves and the remaining GOLD Reserves pertaining to each Country )

Here is the result

Country             Foreign Gold Reserves(tonnes)  Self Gold Reserves (tonnes)
United States                     6148.9260                                  1984.57
Germany                             2465.4751                                     925.82
Italy                                      1770.1996                                      681.60
France                                 1685.5736                                       750.23
China                                         17.8687                                       1033.2
Switzerland                          109.2105                                       930.89
Russia                                      95.0502                                         874.85
Japan                                        24.4864                                        740.71
Netherlands                                 362.6                                        249.90
India                                           55.2123                                        502.49

Do observe the part as to which country has highest Self GOLD RESERVES and the following countries. This can reveal a lot about how the on going Currency wars which is happening now and how Germany Euro or Chinese RMB can be the next RESERVE CURRENCY for International Trade .

Next interesting part is observing and analyzing News pertaining to Germany wanting its GOLD RESERVES back ( 1500 tonnes in the next 5 years from the United States ) and Cyprus wants to sell its GOLD RESERVES ( current GOLD RESERVES is 13.9 tonnes and it might have to sell around 400 millions euros worth of GOLD RESERVES to Stabilize its financial crisis : in short around 10.36 tonnes of GOLD RESERVES at the current price )

Will update the next article shortly which will make sense if you can understand the earlier posts :)

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3 Comments

Filed under GOLD Value Analysis

3 responses to “Why GOLD prices are decreasing constantly. ( PART 2)

  1. Farzyn

    How does having a high self Reserve define that the particular currency becomes the next RESERVE CURRENCY???

    • Good question :)

      Reserve Currency in short means : The foreign currency being held in Central Banks etc as a means to pay off for Debts or to influence domestic trade rates. A large percentage of commodities like GOLD and OIL is usually held as reserve currency.

      Holding currency reserves limits exchange rate risk as the buying nation will not have to exchange their currency for the reserve one to make a purchase. Currently US dollars and Euro are the two leading reserve currency widely used in foreign exchange markets. With the recent EURO crisis and US suffering from a debt of more than 16 trillion dollars ( http://www.usdebtclock.org )
      and Germany wanting its GOLD reserves back ( read the final article ), the next most stable country in terms of GOLD RESERVES is China and German EURO . With China making significant impact in World Economic Growth and Germany ( though Debt / GDP ratio is more ) it is making significant impact in exports ( $1.492 trillion as of 2012 ) , with RUSSIA increasing its GOLD RESERVES it is quite evident as to why China ( RMB ) can be the next currency in international market unless US comes up with some measures.

  2. ali

    my opinion is the economy of us is better and people think that invest money in technology

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