About 30,000 tons of the world’s gold [20-25% of above ground inventory] is held in central bank vaults.

 

Major Central Bank Reserves (2000)

Nations & institutions	Reserves (Tons)
USA	8139
Germany	3469
IMF	3217
France	3025
Switzerland	2590
Italy	2452

 

The totals for other central banks tail off rapidly after these main holders.  Most only hold a few hundred tons, and together they make up a bit over 30,000 tons in all.

 

The rest is held by individuals in the form of gold jewelry [approximately 70,000 - 80,000 tons], coin and privately held bullion [combined at 20,000 tons].

 

90% of the gold above ground has been mined since the start of the California gold rush in 1848. Modern power machinery and chemicals have steadily lowered the price at which gold can be extracted. The average production cost of the world's biggest producer - South Africa - is about $238 per troy ounce. 1997 industry estimates by the Federal Reserve Board suggested an average production cost worldwide of $300 per ounce.