The Bundesbank is once again facing political demands to bring a larger portion of Germany’s gold reserves back to Germany from the USA. The trigger is a noticeable worsening of the transatlantic mood following the recent dispute between Washington and European partners over Greenland – including tariff threats that also resonated at the World Economic Forum in Davos.
Several German politicians and representatives of associations argue that storing a significant portion of the national gold reserves at the Federal Reserve in New York poses a strategic risk in a phase of increased geopolitical tensions. The Bundesbank, on the other hand, points to the security and reliability of its custodians and sees no acute need for action.
Bundesbank gold reserves: A significant share is in the USA
Germany has one of the largest state gold positions worldwide. According to information cited in the current debate, the stock comprises around 3,350 tons of the precious metal. A significant portion of this – reports speak of just under a third to well over a third – is still held in the vaults of the Federal Reserve Bank of New York.
The distribution of the holdings across several storage locations has been known for years: A large part is in Frankfurt, further shares are in London at the Bank of England, and to a lesser extent in other European storage facilities. The political discussion is less about the physical security of the storage locations than about the question of whether Germany would have unrestricted access to the bars held outside Europe at any time in the event of a conflict – and what signal effect a repatriation would have.
New momentum after Greenland dispute: Politicians warn of dependencies
The latest impetus for the discussion came from the rougher tone between the USA and Europe in connection with the discussion about Greenland. In this environment, voices from politics and business are warning that Germany must strengthen its strategic ability to act – and this also includes the question of where the Bundesbank has its gold reserves stored.
A German economist who spoke to the media considered it risky, given the geopolitical situation, to store large parts of the gold in the United States, and suggested that repatriation should be examined. The president of a European taxpayers’ association expressed a similar view: He justified his demand for repatriation primarily with the unpredictability of US policy and the concern that Germany could have difficulties accessing its reserves in an emergency.
Pressure is also coming from the Bundestag. The gold is described as an anchor of stability that must not become a pawn in geopolitical conflicts. At its core, this is a question of trust: Not whether the bars are safely stored in New York – but whether political tensions could make practical access more difficult, even if the ownership is undisputed.
The government side has so far been cautious. According to sources close to the CDU-led federal government, repatriation is not currently being considered.
Bundesbank refers to experience – and to earlier repatriations
The Bundesbank is trying to dampen concerns. Bundesbank President Joachim Nagel has repeatedly emphasized that he has great confidence in the custody at the Federal Reserve in New York and sees no cause for concern.
At the same time, the repatriation of gold reserves is not new territory for Germany. As early as 2013, the Bundesbank had implemented a program in which considerable quantities of gold were transferred from abroad to Frankfurt. Official information documents that by 2020, among other things, 300 tons from New York and around 374 tons from Paris had been transferred to Germany. This historical context is often used in the current debate as evidence that repatriation is fundamentally feasible – even if the scope, conditions and political signals would have to be reassessed in each case.
In parallel with the demand for complete or partial repatriation, there are also voices calling for more transparency above all. For example, it is demanded that German representatives be able to personally check and document the bars stored in New York on a regular basis. Similar wishes had already been publicly discussed in previous years.
The fact that the Federal Reserve Bank of New York plays a central role is also due to its function as a custodian for many countries: It is considered one of the world’s largest gold custodians and stores thousands of tons for dozens of foreign central banks. However, it is precisely this international entanglement that is increasingly being used by critics as an argument that the Bundesbank should shift its gold reserves more into its own area of responsibility, while the central bank itself continues to rely on existing custody agreements.
