Gold is a safe haven for investors during times of financial crisis or uncertainty. It’s also a liquid asset that can be converted into cash.
Many central banks around the world have been buying more gold bullion in recent years. This has coincided with a slew of unconventional monetary policies being implemented by many countries after the financial crisis.
1. United States
The United States is the world’s most popular place to invest in gold bullion. It also has one of the largest gold reserves in the world, which is stored at the Bullion Depository, commonly known as Fort Knox.
While there are several ways to invest in gold, investors generally choose to purchase physical bullion. This is because it carries a lower risk of loss and can provide a steady income stream.
Investors also like the ability to diversify their portfolios by purchasing gold. This can help to mitigate the risks associated with other investments such as stocks and bonds.
2. China
China, the world’s largest gold producer, is also one of the most significant buyers of bullion in the market. They have purchased over 2 billion dollars worth of gold in recent years and this increased buying is thought to be one of the major reasons for gold prices hitting record highs last year.
This increase in demand from China could push up gold prices even further as investors look for safe haven assets to invest in during times of economic instability. It also may indicate that the Chinese government is preparing for a new global currency backed by gold as it would allow them more control over their monetary policy.
3. India
India is one of the world’s leading importers of gold bullion. The country has a large population, and its festivals and weddings are significant drivers of demand for gold.
The Indian bullion market takes in the international gold price as a basis for setting and quoting its own local country prices, which are typically expressed per ounce, gram or kilo. The prices are then corrected by adding any relevant currency exchange values, import duties and other taxes that have to be accounted for when calculating the local gold rate in India.
4. Russia
Russia is the country with the most gold bullion in the world, according to a report by the World Gold Council. Its mines produce more than 300 tonnes of gold a year, and it exports most of it to other countries.
The country also actively encourages citizens to invest in physical gold bars and coins as a safe haven. This has helped them to purchase a record amount of bullion in 2022.
In addition, Russia scrapped 20% VAT on physical gold trades for individuals last March. This encouraged people to buy gold as a way of de-dollarising their money and protecting themselves from the risk of the ruble losing value against the dollar.
5. Japan
Gold is a precious metal that is popular among many people because it is a form of money that can be easily purchased or sold. It is also a valuable store of value that can be used to protect one’s capital and grow wealth over time.
Japan is the most significant market for gold in terms of production and trading volumes. The country has a large number of refineries that produce high-quality gold bars and other forms of investment grade gold.
The Japanese gold market is highly liberalized, with long-standing exchange trading of gold futures on the Tokyo Commodity Exchange (TOCOM). It has an extensive OTC market and a wide range of gold refiners that manufacture high-quality investment gold bars for retail and industrial use.
6. Australia
The smallest continent on Earth, Australia is a popular place for gold investors, as it is seen as a safe haven during volatile economic times. With its unique flora and fauna, the nation is also known for swathes of tropical beaches and the Great Barrier Reef.
Australia’s largest and oldest precious metal manufacturer is the Perth Mint, which produces a number of highly popular coins, bars and other products. These include the famous Australian Nugget Gold Coins, Platinum Koala Coins and Silver Kookaburra Coins.
7. Switzerland
Switzerland is one of the world’s most economically stable countries, which makes it a top place for investors to store precious metals. There are many international companies that offer safe and secure bullion storage options in Switzerland, including local firms.
The country’s long history of neutrality has made it a trusted location for investors to stash their precious metals. It is also a popular location for people to open offshore bank accounts.
It’s a small country, but it has a rich history of democracy and is known for its support of foreigners’ property rights. This has led to a stable political environment and strong economic growth over the years.
