For thousands of years, people have used gold (GC=F) as a currency and store of value. It is estimated that approximately 219,880 tons of gold have been mined throughout history, according to the World Gold Council.
Today, governments, corporations, and individual investors own gold. Given the prevalence of gold, if everyone sold their gold holdings tomorrow, it would have devastating effects on global economies and currencies.
Gold has been mined for thousands of years, so it is difficult to get an exact count of how much gold exists. The World Gold Council estimates that the following gold is found on the surface:
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Approximately 98,000 tons of gold are jewelry, accounting for 44% of the gold market.
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Approximately 51,000 tonnes, or 23% of the world’s gold, is held in gold bars, coins and gold-backed exchange-traded funds (ETFs).
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Approximately 38,600 tons are held by central banks, representing 18% of the world’s gold.
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54,000 tons of gold are kept in reserves
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32,600 tons belong to the other category, representing 15% of the world’s gold.
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132,000 tons are gold resources.
Unlike investments like stocks and bonds, gold is not traded regularly. Most gold is found in the form of jewelry or gold coins, which people keep for years (or even decades).
Read more: Gold IRA: Benefits, Risks, and How It’s Different from a Traditional IRA
If all investors decided to sell their gold tomorrow, the impact would be substantial and would cause one of the biggest financial shocks in history. Here’s what you could expect:
On March 2, 2026, gold cost about $5,300 per ounce. A gold sell-off would have a staggering impact on the value of gold.
Dumping 200,000 tons of gold on the market would overwhelm demand. As gold flooded the market, prices would likely plummet. The spot price of gold would plummet and some exchanges could impose trading suspensions or limit gold sales to control market volatility.
If you own physical gold, such as gold bars or coins, the price of those holdings would decrease. Gold traders may temporarily stop purchasing gold, making it difficult to liquidate their holdings.
Related: How much gold would $1 million buy at different times in history?
The chaos is unlikely to last long. Over time, investors looking to make profits would not be able to ignore the opportunity and would start buying gold again. As more buyers enter the market, gold prices would rise.
Central banks own a significant portion of the world’s gold and could play a huge role in stabilizing the market. Historically, world governments have worked together to stabilize gold prices and protect global economies, so that governments could agree to purchase gold to support higher prices.
If the price of gold were to fall, it could have implications for other investments and industries. Mining companies, jewelry producers, and manufacturing facilities that use gold components would be affected, and gold-related stocks and ETFs would experience price declines. Overall, prices would face downward trends.
While it wasn’t a sell-off, something similar happened with silver in 1980, according to the Scottsdale Mint. The billionaire Hunt brothers, Nelson Bunker Hunt and William Herber Hunt, bought enormous amounts of silver. When they started buying the metal, silver cost around $2 an ounce. By the end of 1979, they owned about a third of the world’s silver and prices were approaching $25 an ounce.
However, the COMEX implemented a new rule to stop investors like the Hunt Brothers from purchasing commodities like silver on margin (borrowing money to invest). As a result, brokerage firms issued margin calls, forcing the Hunt brothers to repay some of the money borrowed, but they were unable to repay the debt.
On Thursday, March 27, 1980, Silver Thursday, the Hunt brothers defaulted on a margin call and the price of silver plummeted. Its price fell below $11, a 50% decrease in a single day.
If gold prices crash tomorrow, it may take some time to recover, but historically gold has recovered within months of market disruptions (in extreme cases, it could take years). Lower prices would attract new buyers and mines would reduce gold extraction, thus curbing supply and boosting demand.
Gold also has a long reputation for holding value. And during periods of economic uncertainty, investors turn to gold and other precious metals, such as palladium, as a store of value. Individual investors would be tempted to buy more gold, which would help restore gold prices.
Among central banks, the United States, Germany and Italy are the largest holders of the world’s gold reserves.
According to the World Gold Council, there are an estimated 54,000 tons of gold in untapped gold reserves.
It is almost impossible for gold prices to go to zero. Historically, gold has been viewed as a physical asset with intrinsic value for industrial and consumer demand. While prices can fluctuate, gold tends to maintain its price.