Who holds gold ?

Across the world, gold circulates in various forms, but it is also held in reserves, notably by States. France is one of the countries which has a large reserve of gold, allowing it to diversify its assets, to have a universal currency of exchange, to cope in the event of an economic crisis, as well as to play on the exchange rate of its currency (although this is less true since the European currency replaced the francs).

FRANCE: A COUNTRY RICH IN GOLD.

Many states have gold reserves and France is one of the countries with the most. In 2022, it is in 4th place, behind the United States and its famous Fort Knox reserve, Germany and Italy, and far ahead of certain powers such as Japan, the United Kingdom, China, etc.
According to the latest censuses in 2020, 2,436 tonnes of gold ¹ are carefully preserved in the form of ingots, the majority of which is in the vaults of the Bank of France. This represents billions of euros, but of course depends on the global gold price (in the second quarter of 2022, with a gold price of around 55,000 euros, this represents a stock of around 153.2 Billions of Euro's).
To date, gold thus represents half of the country's official reserves, which are supplemented by foreign currency reserves, claims on the IMF and other reserve assets.

How did France manage to build up such a stock of gold ? The story is not new, since stocks began to build up at the time of the kings of France, followed by Napoleon and his spirit of conquest and greatness. But the beginnings of the storage and management of gold by the Bank of France occurred at the end of the 19th century, when the gold standard was established. Gold is then used as a reference to determine the price of fiat currency. At this time, the Banque de France exchanged French gold for notes, which became the main currency for transactions. But it took time to reach the current 2,436 tonnes (and even 3,000 tonnes in the early 2000s), because many French people wanted to keep their gold, considering it the safest currency.

THE BANQUE DE FRANCE: HOLDER AND MANAGER OF FRENCH GOLD

If we say that France has thousands of tons of gold, it is in fact more specifically the Banque de France which holds them. In its basements in Paris, 30 meters deep, is the room called “La Souterraine”. It is here that 90% of French gold is held, alongside part of the official gold reserves of the central banks of other countries.

Since 1936 and the nationalization of the Bank of France, and throughout the rest of the 20th century, this public body is the only one able to decide on the sale or purchase of gold for the state account. While this remains true in theory, the reality is a little more complex, due to membership of the European Union and the establishment of the single currency. In order to preserve coherent management and avoid financial disasters, it is in fact the European Central Bank which authorizes or not the Banque de France to buy or sell the famous yellow metal. However, the latter remains the full owner of the gold bars that it keeps in the Parisian underground.

CAN WE BUY GOLD FROM THE BANQUE DE FRANCE ?

A French citizen does not have the possibility of buying or selling gold directly to the public institution that is the Banque de France. Its stocks aim to have a safe haven and to cope with economic difficulties on a global scale.

On the other hand, you can buy gold through your banker, even if the latter is likely to try to dissuade you from this investment solution.

It is still preferable to contact an agency specializing in the sale and purchase of gold. Gold Union allows you to build up your own gold reserve, in the form of gold coins or gold bars investment, available online and at the best price. You can also invest in silver items (bullion and coins).

Source:

¹ Gold and old franc notes, https://www.banque-france.fr/la-banque-de-france/patrimoine/lor-et-les-anciens-billets-en-francs#:~:text=L'gold%20of%20la%20France, 'Germany%20and%20Italy.