Germany Questions Gold Security in the United States

Germany ⁢is⁤ onc again concerned about its gold. The fact that a substantial portion of the country’s gold reserves are‍ held in⁣ the U.S. is leading to calls for the government to bring the gold back.

“Risk⁣ factor: Trump,” public ⁣broadcaster ⁢ARD stated ⁢in a report⁤ on the matter this Friday.

Germany holds the second-largest reserves in the world, with approximately 3550 ‍tons, according to data⁢ from the ‍Bundesbank, Germany’s central bank, as of the end of 2024, ARD reported.

The gold is distributed across three locations: 1710 tons are in Frankfurt, 1236 at the Federal Reserve (Fed) in New York, and the remainder, 405 ⁤tons, at the Bank ⁣of England ‍in London.

The spokesperson for ⁣the German coalition government, comprised of conservatives and ⁣social democrats, Stefan Kornelius, recently stated that withdrawing the gold reserves was not being considered, as reported by The Guardian.

Tho, several economists have argued that it is indeed a ⁣risk‍ for Germany to ⁢keep that amount of gold in New York, citing actions by Trump against the⁢ Fed chairman and pressure for the institution to lower interest rates, and threats⁢ regarding ⁣ Greenland, for example.

“in the interest of greater strategic independence from the U.S., the Bundesbank should consider repatriating‍ the gold,” economist Emanuel Mönch, a former risk assessment officer at the Bundesbank, told the economic daily Handelsblatt.⁣ “It is indeed too risky, given the current ⁢geopolitical situation, to have so much gold in the United States.”

“The ⁢reserves are currently safe in the United States,” said Wolfgang‍ Wrzesniok-Roßbach, of the Fragold consultancy in Frankfurt. but “the more pressure ther is on central banks, and the independence of the Fed ⁢is at risk…