Germany Holds Vast Gold Reserves Stored Partly In United States
Germany has the 2 largest national gold reserves in the world, worth almost 450 billion euros. Around 1,236 tonnes of these reserves are kept in vaults at the United States Federal Reserve. This storage abroad is the result of decades of financial cooperation between Europe and North America and postwar monetary agreements.
About 37% of Germany’s gold is still in New York, and more is stored in vaults in London. The Bundesbank says that international storage helps with liquidity and getting to global trading centers. For a long time, these practices have been seen as normal in central banking around the world.
Source: The Guardian/Website
Economists Warn Geopolitical Risks Threaten Overseas Gold Security
Some well-known German economists say that changing relations between the US and Europe make it riskier to keep gold in US vaults. Emanuel Mönch says that Donald Trump’s unpredictability makes people less sure of long-held beliefs about financial security. He wants repatriation to make Germany’s strategic independence stronger as tensions rise around the world.
Mönch says that gold is a national safeguard that needs to be under the most control by the government during times of geopolitical instability. He says that depending on foreign custodians makes Germany vulnerable to political pressure or problems with access. These worries are part of bigger European discussions about economic sovereignty and resilience.
Trump Policies Heighten Fears Over Access To German Reserves
Donald Trump’s words and actions have made European allies uneasy and raised doubts about the dependability of partnerships with the United States. Tariff disputes and economic threats make it even harder to know what will happen with future bilateral financial cooperation agreements. Economists say that extreme situations could make it hard for Germany to get to its own assets.
Michael Jäger says that Trump’s focus on making money puts German gold stored abroad at unacceptable risk. He points to the United States’ plans for Greenland as proof of aggressive behavior in the world of politics. Jäger thinks that this kind of unpredictability means that Berlin’s leaders need to take action right away.
Recommended Article: Trump Greenland Threat Unites Denmark and Repairs Nuuk Ties
Calls For Repatriation Expand Beyond Political Fringes
The far-right Alternative für Deutschland party in Germany used to be the main group pushing for gold repatriation. But recent changes in world politics have brought the debate into the mainstream of economic and political conversations. Calls are now coming from both respected economists and centrist politicians.
Katharina Beck, the Green Party’s finance spokesperson, supports moving the gold because it is a symbol of stability and trust. She says that reserves should never be used as bargaining chips in power struggles between countries. This is a big step toward getting more agreement across the political spectrum in Germany.
Government Voices Caution Against Immediate Relocation Moves
The coalition government in Germany has said that taking gold out of US vaults is not something they are thinking about right now. Stefan Kornelius said that officials do not see any immediate threats that would require drastic action regarding reserve storage. He stressed the need for faith in current audit and custody arrangements.
Last year, Bundesbank president Joachim Nagel also tried to calm both international partners and people in Germany. He said there was no reason to worry about the German gold in New York. These comments show that institutions prefer stability and careful responses.
Critics Warn Repatriation Could Escalate Political Tensions
Some economists warn that moving gold could make already tense relations between Europe and the US even worse. Clemens Fuest says that these kinds of actions could show a lack of trust and make current geopolitical tensions worse. He said that moving could make an already unstable diplomatic situation even worse.
Fuest thinks that financial symbolism is very important when there is uncertainty in the world. He says that stability depends on restraint, not big moves. These warnings show that experts do not all agree on the best strategic responses.
Debate Reflects Europe’s Broader Push For Strategic Autonomy
The gold controversy is similar to Europe’s larger efforts to be less dependent on political decisions made in the United States. As competition for global power grows and alliances come under stress, economic independence has become more important. Germany’s debate shows how money and geopolitics are connected.
As Trump’s words get harsher, more policymakers are questioning long-held beliefs about how reliable partnerships are. This ongoing conversation could affect how European reserves are managed and how monetary policy is made in the future. Germany’s decision could affect similar discussions in other parts of Europe.
