Britain becomes world's second biggest gold nation – beaten only by one other country

The UK has the second highest gold ETF holdings in the world, new research has found.

Physically-backed gold exchange-traded funds (gold ETFs) are an important source of gold demand and the UK was found to have the second highest number of holding across the map, only beaten out by the USA.

ETFs can conveniently be traded through stock exchanges such as stocks, providing investors with efficient ways to gain exposure to the UK market.

As a result, the UK has accumulated 595 tonnes in gold ETF holdings and is among the countries with the highest holdings.

This highlights the country’s strong investment culture, with a significant portion of its population participating in various investments, such as equities and bonds.

Countries with the highest gold ETF holdings:

The USA has by far the highest ETF holdings compared to all other countries. The ETF market has been particularly strong in the United States, with increased adoption driven by local tax advantages.

Currently retaining 1,518 tonnes in ETF holdings, the country has secured gold ETFs through various investment types, including stocks, bonds and commodities.

The United States also tops the list as the world’s biggest gold nation with 8,133 tonnes in gold reserves, equating to $507 billion (£398.5 billion) in monetary value.

India has the most increased interest in gold reserves, with 29,300 Google searches for the term ‘gold reserves’ as of February 2024.

The gold bar and coin sector is in more demand in China than in any other nation. The strong investment demand for gold has naturally led to the popularity of gold bars and coins in the country, resulting in 280 tonnes.