Gold value reaches highest level in over ten years as Finland holds 49 tons

The value of gold has increased significantly over the past two decades. Recent reports indicate that the price of the precious metal has reached its highest level in over ten years since early April. Currently, the Bank of Finland holds approximately 49 tons of gold, with a market value of around 3.4 billion euros, as stated by Jukka Lähdemäki, a senior portfolio manager at the Bank. Since 2022, the value of gold has risen by about 30%.

However, Finland’s gold reserves do not match the levels of its neighbor, Sweden, which has around 125 tons of gold. The government retains gold primarily for historical reasons, with its currency once pegged to precious metals throughout various decades.

Gold is stored in central banks as bars, with each bar weighing about 12.5 kilograms and valued at approximately 900,000 euros. Only a small portion of Finland’s gold bars are kept within the country, as much is stored in central banks in Sweden, the United States, England, and Switzerland for practical reasons. As Lähdemäki explains, the trading of gold is more efficient in places like the Bank of England, where gold markets are concentrated.

Gold is also considered a safe haven during crises, maintaining its value during turbulent times, and is often seen as protection against inflation. Unlike stocks or corporate bonds, gold carries no credit risk; it cannot “go bankrupt,” ensuring that investors do not lose their investment as they might with failing companies.