Why Portugal surpasses Spain in gold reserves: An economic analysis

In a global landscape marked by economic and geopolitical uncertainty, gold has emerged as a pivotal strategic asset for many nations. Traditionally regarded as a safe haven, this precious metal plays a fundamental role in the financial stability of countries. Gold reserves enable central banks to support their monetary policies, stabilize their currencies, and diversify their assets against market volatility. Moreover, in times of crisis, gold acts as a guarantee of solvency and a symbol of international trust.

It is particularly noteworthy that Portugal, despite having a significantly smaller economy than Spain, possesses greater gold reserves. According to data from Trading Economics, Portugal holds 382 tonnes of gold, compared to Spain's 281 tonnes.

This discrepancy becomes even more striking when comparing several key macroeconomic indicators. In 2024, Spain's Gross Domestic Product (GDP) reached €1,591.627 billion, with a per capita GDP of €32,590. In contrast, Portugal recorded a GDP of €285.189 billion and a per capita GDP of €26,700.

The strategic decisions behind gold reserves

The primary reason Portugal maintains larger gold reserves than Spain can be traced to strategic decisions made by both countries over time. While both nations accumulated wealth in gold during the colonial era, their policies regarding this resource have diverged significantly.

A pivotal episode in Spanish history occurred during the Civil War. Until that time, Spain was among the countries with the largest gold reserves globally, ranking fourth. However, the entry of the rebel faction into Madrid forced the Republican government to transfer much of the gold stored in the Bank of Spain to the Soviet Union, in an episode famously known as the "Gold of Moscow." The purpose and final destination of those reserves remain subjects of debate among historians.

Another critical moment arose in 2007 when the Spanish government decided to sell 4.3 million ounces of gold—approximately one-third of its reserves—in an attempt to diversify its assets and achieve higher returns.

In contrast, Portugal has adhered to a conservative policy in this regard, opting to preserve gold as a vital asset to ensure economic stability. This strategy has allowed the country to maintain a financial cushion against potential crises, reinforcing its image of solvency on the international stage.