Lebanon’s vast gold reserves have become the focus of a fierce national debate over whether they should remain untouchable or be partially used to aid recovery amid financial collapse, legal barriers, and a deep crisis of trust.

Lebanon holds the second-largest gold reserve in the Arab world after Saudi Arabia, which possesses around 323.1 tonnes. Lebanon retains approximately 286.8 tonnes, worth approximately $44bn, a staggering stockpile for a country enduring one of the world’s most severe financial collapses since the mid-19th century. Depositors remain locked out of their savings, the banking sector is effectively insolvent, and public trust in state institutions has nearly disintegrated.

Against this backdrop, Lebanon’s gold has emerged as the most politically charged asset in the country and the center of an increasingly urgent national reckoning. The question is no longer theoretical, but explosive: what should Lebanon do with its last untouchable reserve?

Should the gold remain a sacred strategic safeguard, protected from political misuse? Could it be pledged or securitized to unlock international financing? Or should part of it be monetized to compensate depositors and restore a minimum foundation of confidence?

The stakes could not be higher. The fate of Lebanon’s gold carries profound consequences for depositor recovery, the country’s credibility in negotiations with the International Monetary Fund, and its ability to manage sovereign wealth transparently after decades of systemic mismanagement.

How much Gold, where it is, and what it worth

According to figures reported by Banque du Liban (BDL), Lebanon holds approximately 286.8 metric tonnes of gold, equivalent to about 9.22mn troy ounces. The volume has remained broadly unchanged for decades (since the seventies) and is the basis of Lebanon’s official reporting to international datasets.

The location of the gold is less transparent. It is historically understood to be split between vaults at BDL in Beirut and custody at the Federal Reserve Bank of New York. Public estimates most often cite roughly 60% held domestically and about 40% abroad, though the precise breakdown has never been officially disclosed.

What changed dramatically is the value of the gold. With the recent sharp rise in global gold prices, reaching levels exceeding $5,000 per ounce (before declining during the past few days), and the severe collapse of the Lebanese pound, the notional value of Lebanon’s gold reserves increased substantially.

Based on valuing one ounce of gold at $1,517 at the end of 2019, equivalent to about $13.98bn, the value rose to nearly $50bn in early 2025, when gold prices reached around $5,500 per ounce. This is according to BDL balance-sheet data and independent market analyses. At peak prices, some assessments estimated the value even higher. Based on the current gold price, which hovers around $4,850 per ounce, Lebanon’s official reserves are estimated at around $45.6bn. Considering Lebanon’s nominal GDP of $35bn, this means that gold alone amounts to nearly 130% of the GDP.

Because Lebanon’s dollar-measured GDP has shrunk sharply during the crisis, the gold stock now represents one of the highest gold-to-GDP ratios globally, placing Lebanon among the world’s top holders relative to economic size. By volume, the country ranks around 21st worldwide and second in the Middle East, typically behind Saudi Arabia.

Indeed, Lebanon’s gold reserves are exceptional globally. Advanced economies typically hold gold equivalent to about 6% of GDP, emerging markets around 3%, and lower-rated countries roughly 2.5-3%. Therefore, Lebanon far exceeds these benchmarks, as noted earlier; yet this wealth has not translated into financial stability or a credible recovery plan. The issue lies not in the gold itself but in governance. Legal and political restrictions, lack of public trust, and stalled political decision-making prevent effective use.

Why gold is hard to touch

Lebanon’s gold reserves are protected by Law No. 42 of 1986, enacted during the civil war to prevent political authorities from liquidating national assets during instability. The law explicitly prohibits the sale, transfer, leasing, or investment of the gold without an act of Parliament.

Legal ambiguity remains over whether pledging gold as collateral or issuing gold-backed financial instruments would constitute “disposal” under the law. Legal opinions diverge, but any attempt to mobilize the gold would almost certainly require parliamentary involvement.

Former acting BDL governor Wassim Mansouri publicly pledged that he would not authorize the movement of “even a gram” of gold without full legal cover, reflecting the sensitivity surrounding the issue. His successor, Karim Souaid, has entered office under intense pressure to demonstrate transparency in reserve management.

Lebanon’s Gold is not on the table

Despite persistent rumors, the International Monetary Fund (IMF) has not demanded that Lebanon sell its gold.

In ongoing talks between Lebanese authorities and an IMF team led by Ernesto Ramirez Rigo, the Fund has highlighted comprehensive reforms in banking restructuring, fiscal adjustment, exchange-rate unification, and governance improvements as prerequisites for financial assistance.

Gold policy, IMF officials have indicated, sits within a broader asset-liability discussion but is not a standalone condition. Internationally, however, greater transparency around sovereign assets, including gold, is viewed as a credibility test particularly after amendments to Lebanon’s Bank Secrecy Law were passed in April 2025.

The missing audit and what is known

Public suspicion has long centered on whether Lebanon’s gold physically exists as reported.

According to Banque du Liban, a physical verification conducted in late 2022 at the IMF’s request confirmed that the gold stock matched accounting records. The inspection was carried out by ALS Inspection UK, commissioned by KPMG, and included the examination of more than 13,000 gold bars and 600,000 gold coins.

The verification was separate from the forensic audit of BDL’s broader financial operations conducted by Alvarez & Marsal, which documented extensive governance failures but did not dispute the existence of the gold.

What remains absent is a regularly updated, fully transparent audit covering custody arrangements, liens, and legal encumbrances, a gap that continues to fuel mistrust.

This article first appeared here in the Beiruter, an IntelliNews media partner.