Germany's Push to Reclaim Its Gold From the U.S.

A growing number of German officials are calling for the Bundesbank to repatriate the country's vast gold reserves stored in the United States, citing escalating geopolitical risks. Germany holds 3,352 tonnes of gold, the second-largest reserve in the world, with a significant portion remaining in foreign vaults.

Approximately 1,200 tonnes, valued at around €164 billion ($194 billion), are currently held at the Federal Reserve Bank of New York. This arrangement, a relic of the Cold War designed to keep the assets safe from the Soviet Union, is now facing intense scrutiny.

The Geopolitical Trigger for Repatriation

The primary driver behind the repatriation calls is a shifting global landscape. Emanuel Mönch, a prominent German economist and former head of research at the Bundesbank, has labeled the current storage arrangement in the U.S. as "too risky."

"Given the current geopolitical situation, it seems risky to store so much gold in the U.S.," Mönch stated. "In the interest of greater strategic independence from the U.S., the Bundesbank would therefore be well-advised to consider repatriating the gold."

This sentiment is fueled by the United States' increasing use of economic pressure and the dollar as foreign policy tools. Michael Jäger, head of the European Taxpayers Association (TAE), pointed to former President Trump's unpredictability as a key concern.

"Our gold is no longer safe in the Fed's vaults," Jäger warned, suggesting the risk of the Bundesbank losing access to its reserves is rising.

Echoing these concerns, EU Parliament member Markus Ferber has called for regular, in-person audits of Germany's gold by Bundesbank officials. "The Bundesbank's policy for gold reserves has to reflect the new geopolitical realities," he explained.

A Cross-Party Debate Emerges

While calls for repatriation have traditionally come from politically conservative figures, the idea is gaining broader support. Katharina Beck, the Green Party's finance spokesperson, endorsed the move, describing the country's gold reserves as an "important anchor of stability and trust" that "must not become pawns in geopolitical disputes."

Despite this growing pressure, the official stance remains unchanged for now. A spokesperson for Friedrich Merz's coalition government recently stated that moving gold out of the U.S. is not currently being considered. The Bundesbank has also made no official statements on the matter, publicly maintaining its trust in the Federal Reserve.

Voices of Caution Advise Against Hasty Moves

Not everyone agrees that bringing the gold home is the right decision. Clemens Fuest, President of the Institute for Economic Research (Ifo), advised against repatriation, warning it could have unintended consequences and would "only pour oil on the fire of the current situation."

Frauke Heiligenstadt, a financial policy spokesperson for the Social Democrats, acknowledged the concerns but argued against a rush to action. She noted that Germany's gold reserves are well diversified, with about half already stored in Frankfurt, which "guaranteed" the country's ability to act. Heiligenstadt added that keeping some gold in New York remains logical due to the close financial ties between Germany, Europe, and the U.S.

Part of a Global De-Dollarization Trend

The debate in Germany is not happening in a vacuum. It is part of a wider global trend of de-dollarization and asset repatriation as countries seek to reduce their dependence on the U.S. financial system. This movement gained momentum after the U.S. and its allies froze nearly half of Russia's $650 billion in gold and foreign exchange reserves.

A 2023 World Gold Council survey revealed the impact of these sanctions.

• A "substantial share" of central banks expressed concern about potential sanctions.

• 68% of banks surveyed said they plan to keep their gold reserves within their own borders, up from 50% in 2020.

One central bank official anonymously told Reuters they had moved their gold from London back to their own country "to hold as a safe haven asset and to keep it safe."

Numerous countries have already taken action. India repatriated 100 tonnes of its gold in 2024. This follows earlier moves by Poland, which brought home 100 tons in 2019, as well as repatriation programs initiated by Hungary, Romania, Australia, the Netherlands, and Belgium. Germany itself completed a project in 2017 to return roughly half of its total reserves to its own vaults.