Concerns over the weaponization of the U.S. dollar and trade policy have reignited calls within Germany to repatriate a portion of the nation’s gold reserves held in New York, as critics question the security of storing sovereign assets abroad in an era of rising geopolitical risk.
Germany holds the world’s second-largest official gold reserves, totaling 3,352 tonnes. Of this, approximately 1,200 tonnes—worth an estimated $130 billion—are stored at the Federal Reserve Bank of New York, a legacy of Cold War-era policies aimed at distancing key financial assets from the threat of Soviet incursion.
However, amid Washington’s increasingly aggressive use of financial tools as instruments of foreign policy, some German lawmakers and policy advocates are questioning whether those reserves remain secure on American soil.
“It’s Our Money; It Should Be Home”
Markus Ferber, a member of the European Parliament, recently demanded a full audit of Germany’s overseas gold holdings. “Official representatives of the Bundesbank must personally count the bars and document their results,” he said, citing fears over U.S. President Donald Trump’s unpredictability and potential future interference.
“Trump is erratic, and one cannot rule out that someday he will come up with creative ideas about how to treat foreign gold reserves,” Ferber said. “The Bundesbank’s policy must reflect new geopolitical realities.”
The German Taxpayer Federation echoed these concerns in a letter to the Bundesbank, calling for the immediate return of gold stored in the U.S. “Trump wants to control the Fed, which would also mean controlling the German gold reserves in the U.S. It’s our money; it should be brought back,” the group stated.
Despite mounting pressure, the Bundesbank has made no official announcement regarding a change in its storage policy. The central bank continues to express confidence in the Federal Reserve’s custodial role. However, the growing unease suggests the issue may remain under private review.
A Global Trend Toward Repatriation
Germany is not alone in reconsidering where it stores its gold. A 2023 survey by the World Gold Council found that 68% of central banks planned to store their reserves within their own borders, up from 50% in 2020. This shift follows the West’s unprecedented move to freeze roughly half of Russia’s $650 billion in gold and foreign exchange reserves after its 2022 invasion of Ukraine.
One unnamed central bank official told Reuters, “We did have [gold] held in London… but now we’ve transferred it back to our country to hold as a safe haven asset and to keep it safe.”
India repatriated 100 tonnes of gold in 2024, joining a growing list of countries taking similar action. In recent years, Poland, Hungary, Romania, Australia, the Netherlands, and Belgium have all initiated repatriation programs. Notably, Germany completed the return of approximately half its gold reserves in 2017, concluding a multi-year effort that began in 2013.
Security, Sovereignty, and Counterparty Risk
The trend underscores a broader desire among central banks to mitigate counterparty risk and regain direct control of sovereign assets. “If you store your gold and silver with a third party, you could lose your metal through theft, fraud, or geopolitical interference,” noted one industry expert. “This is why more institutions are prioritizing physical ownership over paper claims.”
For private investors, similar concerns apply. Advocates of precious metal investment emphasize the importance of secure and transparent storage solutions. Reputable firms such as Money Metals Exchange offer fully insured vaulting services, with holdings segregated, not commingled or rehypothecated, and stored independently from the banking system.
As geopolitical tensions continue to shape financial policy worldwide, the question of where to store gold has become more than a matter of logistics—it’s increasingly one of sovereignty.
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