In a recent article we talked about edible gold (link here). Today ProiezionidiBorsa remains on the subject, analyzing gold as Italy’s strategic financial asset. The precious metal in history has played and still plays a key role in international economic relations.
Italy, since the founding of the Bank of Italy in 1893, has given a lot of weight to the ownership of gold. To the point of becoming one of the strongest golden powers in the world. Here’s how much gold Italy has: let’s see some figures.
Italian gold in numbers
Precisely, Italy is the fourth gold power in the world with 2,452 tons of gold. The latest changes in the current quantity date back to 1999, coinciding with the launch of the Economic and Monetary Union (EMU). Really a considerable figure if we consider the original quantity of 78 tons of the first years of the life of the Bank of Italy. The historical minimum, however, was reached in October 1944. At the time, due to the massive removal by the German occupying troops in Rome, Italian gold reached the figure of 22 tons.
Most of the gold reserves currently held are represented by ingots: 95,493 units. The monetary value of gold, on the other hand, is estimated at 88 billion euros as at 31 December 2018. These and other statistics can be found on the institutional website of the Bank of Italy.
The function of the raw material
The main function of gold is to guarantee and increase confidence in the country’s currency and financial stability. Countries that hold large quantities of gold are traditionally advanced economies, attentive to financial risks. In fact, gold somehow serves to shelter itself from the economic shocks deriving from ever closer economic integration. But also from situations of political instability. As well as social chaos and conflicts.
Furthermore, this precious metal makes it possible to offer a counterpart when a country intends to resort to international loans. In the Italian case this occurred in 1976. On the occasion of a loan requested from the German Federal Bank (Bundensbank).
Where the Italian gold is kept
Gold reserves are held in various countries. This is dictated by two reasons.
The first concerns diversification aimed at reducing risks as much as possible. The second lies in the choice of countries that constitute the main financial centers for gold in the world.
The largest percentage of gold is located inside the Koch Palace. The prestigious headquarters of the Bank of Italy. It represents 44.86% corresponding to 1,100 tons.
The USA follows with 43.29%. That is 1,061.5 tons. The third country is Switzerland. 149.3 tons are deposited, which in percentage make up 6.09%. Finally, in England we hold 141.2 tons. The equivalent of 5.76%.
Here’s how much gold Italy has.