Italy’s Commitment to Gold Delivers a Major Windfall
Rome, October 15, 2025 — Italy’s steadfast decision to hold onto its gold reserves despite economic turmoil and debt crises has paid off handsomely, as record-high gold prices have boosted the value of the Bank of Italy’s bullion holdings to an estimated $300 billion.
With 2,452 metric tons of gold, Italy now boasts the third-largest national gold reserve in the world — behind only the United States and Germany — according to the World Gold Council. The valuation represents nearly 13% of Italy’s 2024 GDP, underscoring gold’s importance as a pillar of financial stability for the country.
A Strategic Choice Rooted in History
Italy’s attachment to gold is both deeply historical and strategically modern. The country’s central bank has guarded its reserves through wars, political upheaval, and fiscal crises — a stance that has often set it apart from other European nations that opted to sell portions of their gold holdings.
The origins of Italy’s modern gold policy date back to World War II, when Nazi forces, with the complicity of Italy’s fascist regime, seized around 120 tons of the nation’s gold. By the end of the war, only about 20 tons remained.
In the postwar period, during Italy’s so-called economic miracle, strong export performance and inflows of foreign currency — particularly U.S. dollars — allowed the country to rebuild and expand its reserves. By 1960, Italy’s gold holdings had climbed to 1,400 tons, including most of the bullion recovered in 1958.
The Symbolism of Gold: “Italy’s Family Silverware”
For decades, Italian policymakers have viewed gold as a national safeguard, not merely a financial asset.
“Gold is like the family silverware, it’s the last resort in times of crisis,” wrote Salvatore Rossi, former Deputy Governor of the Bank of Italy, in his 2018 book Oro (Gold). “It symbolizes trust, value, and security when everything else is uncertain.”
That philosophy has guided the country through modern crises as well — from the oil shocks of the 1970s, to the global financial crisis of 2008, to the more recent sovereign debt challenges. Unlike the UK or Spain, Italy has never sold significant portions of its reserves, choosing instead to leverage gold as collateral when necessary — such as the $2 billion loan from Germany’s Bundesbank in 1976.
Inside the Bank of Italy’s Gold Vaults
Today, the Bank of Italy’s gold vaults are among the most secure financial facilities in Europe. Roughly 1,100 tons of gold are stored beneath Palazzo Koch, the Bank of Italy’s headquarters in Rome — just steps away from the Colosseum.
Additional reserves are distributed across secure vaults in the United States, the United Kingdom, and Switzerland.
Among the holdings are nearly 872,000 gold coins, weighing a combined 4.1 tons, kept in a vault referred to as “the sacristy” — a nod to the church rooms that house sacred relics.
According to World Gold Council data, gold represented about 75% of Italy’s official reserves at the end of 2024, well above the eurozone average of 66.5%.
A Modern Policy for a Changing Global Economy
Experts believe Italy’s historical prudence now appears strikingly forward-thinking. As global uncertainty rises — from geopolitical tensions to currency volatility — central banks worldwide have been rebuilding their gold reserves.
“That historical decision of the Bank of Italy feels strikingly modern,” said Stefano Caselli, dean of the SDA Bocconi School of Management in Milan. “Because we are back in a period where gold once again represents the ultimate store of value.”
The global trend of central bank gold accumulation reflects a shift toward safe-haven assets amid the rise of digital currencies, inflationary pressures, and changing trade alliances.
Why Italy Refuses to Sell Its Gold
Despite calls from some economists and politicians to liquidate part of the gold holdings to reduce Italy’s massive public debt, now exceeding €3 trillion, the Bank of Italy has consistently resisted such proposals.
Selling half of the reserves, experts note, would barely make a dent in the country’s 137% debt-to-GDP ratio and could undermine market confidence.
“Selling gold would not solve Italy’s debt problem,” explained Giacomo Chiorino, Head of Market Analysis at Banca Patrimoni Sella & C. “But keeping it reinforces Italy’s credibility and financial security.”
Gold’s Resurgence in 2025
With gold prices hitting record highs in 2025 amid global economic uncertainty, Italy’s decision to retain its reserves has generated substantial unrealized gains for the state’s balance sheet.
Central banks — particularly in China, India, and Turkey — have been among the largest net buyers of gold this year, underscoring the renewed role of the precious metal in global finance.
At a time when digital currencies, stablecoins, and cryptocurrencies are reshaping monetary systems, gold has once again become “the hottest asset,” according to Caselli.
“They are right not to sell,” he added. “Gold is proving its enduring power as a stabilizing force in uncertain times.”
Italy’s Gold Heritage: From Ancient Rome to Modern Finance
Italy’s affinity for gold dates back millennia. The Etruscans were early masters of gold craftsmanship, and under Julius Caesar, the aureus gold coin became the backbone of the Roman monetary system.
Centuries later, the Florentine fiorino became the dominant coin across Europe, functioning much like the U.S. dollar does today.
Modern Italy remains one of the world’s top exporters of gold jewelry, with production hubs in Arezzo, Vicenza, and Alessandria, home to luxury brands such as Bulgari, Buccellati, and Damiani.
The Bottom Line
Italy’s unwavering commitment to gold — despite mounting debt, market turbulence, and political instability — now stands as a model of monetary foresight.
As global markets seek stability amid geopolitical and financial shifts, the Bank of Italy’s gold policy is being vindicated. With a $300 billion gold cushion, the nation holds not just a precious metal, but a symbol of economic sovereignty and long-term resilience.
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