Italy’s gold reserves shine as prices soar, boosting national wealth
Wed Oct 15 2025
Italy’s bold and unwavering commitment to gold has paid off, with the country’s massive bullion stockpile now worth an estimated $300 billion, thanks to soaring gold prices. Despite facing numerous financial crises, Italy’s central bank has long resisted calls to sell its gold, keeping its vast reserves intact and even expanding them over the decades, reports Reuters.
The Bank of Italy now holds the world’s third-largest national gold stockpile, behind only the U.S. and Germany, with 2,452 metric tons of gold. This represents about 13% of Italy’s projected GDP in 2024, according to Reuters calculations.
Italy’s affinity for gold stretches back thousands of years, from the Etruscans to the Roman Empire, where the aureus coin symbolized wealth and power. However, modern gold policy was shaped by Italy’s wartime experiences. During World War II, Nazi forces, with the help of Italy’s fascist regime, seized 120 tons of Italy’s gold. By the war’s end, Italy had only 20 tons left.
During its postwar "economic miracle," Italy saw a surge in foreign currency inflows, particularly U.S. dollars. A portion of this influx was converted into gold, restoring the country’s reserves to 1,400 tons by 1960, including the three-quarters of gold it had lost during the war.
The oil shocks of the 1970s further destabilized global financial markets, prompting many central banks, including Italy’s, to stockpile gold as a safeguard against economic uncertainty. Stefano Caselli, dean of the SDA Bocconi School of Management, explained, "Gold became the ultimate symbol of financial solidity in an era of monetary instability."
Unlike countries like Britain and Spain, which sold off their gold during financial downturns, Italy kept its reserves intact, even through the 2008 debt crisis. Former deputy governor of the Bank of Italy, Salvatore Rossi, famously described gold as "the family silverware," a precious asset to protect the country in times of crisis.
In today’s global economic environment, where digital assets like cryptocurrencies are gaining ground, central banks worldwide are again turning to gold as a secure, tangible asset. Italy’s decision to hold onto its gold reserves is seen as particularly prescient. "That historical decision by the Bank of Italy feels strikingly modern," Caselli remarked.
Gold now accounts for nearly 75% of Italy’s official reserves, well above the eurozone average of 66.5%, according to the World Gold Council. The Bank of Italy stores around 1,100 tons of its gold in a vault beneath its headquarters in Rome, with smaller amounts held in the U.S., Britain, and Switzerland.
Italy also remains a leader in global gold jewelry exports, with production hubs in Alessandria, Arezzo, and Vicenza, housing luxury brands like Bulgari and Damiani.
Italy’s gold holdings are seen by many as a key safeguard against its public debt, which exceeds 3 trillion euros. Despite ongoing calls to sell some of its gold to address this debt, experts argue that such a move would have little effect on the country’s fiscal challenges. "Selling even half of the gold would not solve Italy’s debt problem," said Giacomo Chiorino of Banca Patrimoni Sella & C.
With the value of gold rising and digital assets on the rise, Caselli concluded, "Gold remains the hottest asset, and central banks are right not to sell."
Source: https://en.bd-pratidin.com/