Concerns about the security of Germany’s overseas gold reserves—particularly those stored in New York—are gaining traction, expanding from fringe political rhetoric into mainstream debate amid rising geopolitical tensions and Donald Trump’s return to the White House.
Germany’s central bank, the Bundesbank, holds the world’s second-largest gold reserve, totaling 3,352 tonnes. Roughly one-third of that is stored at the Federal Reserve Bank of New York, a Cold War-era arrangement intended to safeguard assets far from the Soviet sphere of influence and to strengthen transatlantic economic ties.
From the Margins to the Mainstream
Historically, calls to repatriate Germany’s gold have been championed by the right-wing Alternative for Germany (AfD) party and so-called “gold bugs.” But Trump’s renewed confrontations with global allies, his criticism of the Federal Reserve, and broader uncertainty about U.S. commitments have drawn wider political and public scrutiny.
This week, Germany’s Taxpayers Federation formally urged the Bundesbank and the Finance Ministry to return all U.S.-held gold to domestic vaults.
“Trump wants to control the Fed, which would also mean controlling the German gold reserves in the U.S.,” said Michael Jaeger, vice-president of the federation. “It’s our money. It should be brought back.”
Markus Ferber, a prominent Christian Democrat and member of the European Parliament, echoed those concerns. “The United States is no longer the reliable partner it used to be,” he said. “Trump is erratic, and one cannot rule out that he may come up with creative ideas on how to handle foreign gold reserves. The Bundesbank’s policy must reflect new geopolitical realities.”
Bundesbank Stands by the Fed
Despite growing scrutiny, the Bundesbank continues to express confidence in the Federal Reserve as a trustworthy custodian.
“We have no doubt that the New York Fed remains a reliable partner for the storage of our gold holdings,” the Bundesbank said in response to a Reuters inquiry. The Finance Ministry deferred questions to the Bundesbank, citing its operational independence.
Any suggestion of relocating gold from New York would be politically sensitive, potentially signaling diminished confidence in the Fed and risking diplomatic tension with Washington.
The European Central Bank also reaffirmed its trust in the U.S. central bank last week. However, Trump’s frequent public criticism of Fed Chair Jerome Powell—whose term ends in early 2026—has reignited concerns about the Fed’s independence and long-term credibility among global partners.
Longstanding Debate Gains New Momentum
Peter Boehringer, the AfD lawmaker who launched the original gold repatriation campaign over a decade ago, said he feels vindicated by the shifting tone in public discourse.
“When I started asking about the gold, I was dismissed as a conspiracy theorist,” Boehringer said. “Today, after Trump, my concerns are shared widely.”
Germany acquired most of its gold during the economic boom of the 1950s and 1960s. Keeping some of it in New York was not only a strategic Cold War safeguard but also a symbol of West Germany’s military and economic alliance with the United States.
Between 2014 and 2017, the Bundesbank repatriated 300 tonnes of gold from New York to “build confidence at home.” Today, Germany’s gold reserves are stored across three primary locations: Frankfurt, New York, and the Bank of England in London.
Calls for Diversification and Vigilance
Ferber now advocates for greater geographic diversification of gold holdings. “Having all eggs in too few baskets is never advisable,” he said, though he declined to suggest alternative storage locations.
Fritz Güntzler, a spokesperson for the Christian Democrats in the German parliament, said he continues to trust the Fed but emphasized the importance of regular audits. “The Bundesbank should continue regularly inspecting the stocks,” he said.
The Bundesbank reported it has conducted sample inspections on approximately 13% of its gold held in New York over the years.
As the geopolitical landscape continues to evolve, so too may Germany’s approach to safeguarding one of its most valuable national assets.
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