The 10 Countries With The Biggest Gold Reserves In The World

Gold is tumbling today, trading at about $1,672.70. It's well off its 52-week high of $1,918.10 per ounce. Prices fell after the dollar rallied on concerns over Greece's debt swap and inflation stayed low in developed countries.

In 2011, global central banks continued to be net buyers of gold as they attempted to diversify from their dollar and euro holdings, rebalance reserves, and protect national wealth.

Purchases by central banks surged to 439.7 tonnes in 2011, from 77 tonnes the previous year, according to the World Gold Council (WGC). Mexico, Russia and South Korea were some of the largest buyers of gold. At 90.5 percent, Portugal is the country with the highest percent of its foreign reserves in gold.

We put together a list of the countries with the biggest official gold holdings as reported by the (WGC). We also included the percent of their foreign reserves they have in gold.

#10 India

Official gold holdings:
557.7 tonnes

Percent of foreign reserves in gold:
9.2%

India's central bank gold holdings lag those of major economies. The RBI is known to buy IMF gold and considers gold to be a safe investment, but rarely comments on its plans to buy gold.

Source: World Gold Council

#9 Netherlands

Official gold holdings:
612.5 tonnes

Percent of foreign reserves in gold:
59.8%

Since 1991, the Dutch National Bank (DNB) sold 1,100 tonnes of gold. But, the bank considers gold to be "the ultimate reserve and anchor of trust in times of financial crisis," according to Zero Hedge, and holds it for diversification purposes. Nout Wellink, president of the Dutch central bank has previously said that the DNB doesn't intend to sell gold.

Source: World Gold Council

#8 Japan

Official gold holdings:
765.2 tonnes

Percent of foreign reserves in gold:
2.9%

In 2011, the Bank of Japan sold gold to pump ¥20 trillion into the economy to calm investors after the tsunami and resulting nuclear disaster in Japan. Meanwhile, the country's gold exports (which include private exports) are expected to reach 100 metric tonnes in 2011.

Source: World Gold Council

See the rest of the story at Business Insider