Germany Debates Pulling Its Gold From US Vaults

A growing debate is unfolding in Germany over whether to bring home its massive gold reserves stored in United States vaults. The discussion, fueled by shifting transatlantic relations and the unpredictability of Donald Trump, questions the long-standing practice of keeping a significant portion of the nation's wealth overseas.

Germany holds the world's second-largest national gold reserves, and a substantial part of it—1,236 tonnes valued at approximately €164 billion—is stored in New York.

The Case for Bringing German Gold Home

Prominent voices are increasingly calling for the gold's repatriation, citing geopolitical risks and a desire for greater strategic autonomy from the U.S.

Emanuel Mönch, a leading economist and former head of research at Germany's central bank, the Bundesbank, argued that storing so much gold in the U.S. is too risky under the current administration. "In the interest of greater strategic independence from the US, the Bundesbank would therefore be well advised to consider repatriating the gold," he told the financial newspaper Handelsblatt.

This sentiment is echoed by Michael Jäger, head of the European Taxpayers Association. He pointed to Trump's unpredictability as a key concern. "That's why our gold is no longer safe in the Fed's vaults," Jäger told the Rheinische Post, adding, "The risk is increasing that the German Bundesbank will no longer be able to access its gold." Jäger confirmed he wrote to the Bundesbank and the finance ministry last year urging them to "bring our gold home."

While the issue was once primarily championed by the far-right Alternative für Deutschland (AfD) for patriotic reasons, it has now entered mainstream political discourse. Katharina Beck, the finance spokesperson for the opposition Greens, described the gold bars as an "important anchor of stability and trust" that "must not become pawns in geopolitical disputes."

Ulrike Neyer, a professor of economics at the University of Düsseldorf, put it bluntly: "Due to the Trump administration, the US is no longer a reliable partner."

Arguments for Maintaining the Status Quo

Despite the growing pressure, repatriating the gold faces significant opposition from key economic and political figures who warn of unintended consequences.

A spokesperson for Friedrich Merz's coalition government, Stefan Kornelius, stated that withdrawing the gold reserves is not currently under consideration.

Clemens Fuest, president of the influential Institute for Economic Research (Ifo), cautioned that such a move would "only pour oil on the fire of the current situation" and could escalate tensions.

Officials also stress that the current arrangement is secure. Speaking at an International Monetary Fund meeting, Bundesbank president Joachim Nagel assured attendees there was "no cause for concern" over the German gold held at the US Federal Reserve.

Frauke Heiligenstadt, a financial policy spokesperson for the Social Democrats, acknowledged the concerns but argued against panic. "Germany's gold reserves are well diversified," she said, noting that since half are already in Frankfurt, the country's "ability to act is guaranteed." She added that keeping gold in New York makes sense because "Germany, Europe and the US are closely linked in terms of financial policy."

A Breakdown of Germany's Gold Holdings

Germany's total gold reserves are valued at nearly €450 billion. The holdings are distributed across three key locations:

• Frankfurt: Just over half of the reserves are held at the Bundesbank.

• New York: 37% is stored in the vaults of the US Federal Reserve.

• London: 12% is held at the Bank of England, the global hub for gold trading.

The Bundesbank states that it conducts regular audits of all its stored gold supplies.