Germany is weighing a potential repatriation of roughly €164 billion in gold reserves held in New York, a move driven by escalating geopolitical concerns and questions regarding the reliability of the United States as a secure custodian of foreign assets. While GermanyS central bank, the Bundesbank, currently maintains its gold is regularly audited, calls for bringing the reserves home are gaining momentum across the political spectrum, fueled by perceptions of increasing global instability and shifting international alliances.This debate reflects a broader trend among nations reassessing the location of their sovereign wealth, as detailed in recent reports on central bank repatriation efforts [[3]].
Germany is considering repatriating approximately €164 billion ($175 billion) worth of gold reserves – equivalent to 1,236 tons – currently held in New York, as concerns grow over geopolitical risks and the reliability of the United States as a custodian. The move reflects a broader trend among European nations seeking greater strategic independence.
Emanuel Mönch, former head of research at Germany’s central bank, Bundesbank, and a leading economist, has publicly called for the gold to be brought home, arguing that keeping such a substantial amount of the nation’s wealth in the U.S. is increasingly “risky” under the current global political climate. “Given the current geopolitical situation, it appears risky to keep so much gold in the United States,” Mönch told Handelsblatt. “In the interest of strategic independence, it would be appropriate for the Bundesbank to consider bringing more gold back to the country.”
While a government spokesperson, Stefan Kornelius, representing Chancellor Friedrich Merz’s coalition, recently stated that a withdrawal of gold reserves is not currently under discussion, the idea is gaining traction among economists and financial experts as Germany seeks greater autonomy.
Michael Jäger, President of the German Taxpayers Association (TAE), echoed these sentiments, pointing to the U.S.’s recent interest in acquiring Greenland as a potential risk factor. “Trump is unpredictable and will try every way to generate income,” Jäger stated to Rheinische Post. “That’s why our gold is no longer safe in the Fed’s vaults. What if the Greenland provocation continues? The risk of not being able to access German Bundesbank gold increases. Therefore, the reserves must be brought back.” Jäger revealed he sent a letter to the Bundesbank and the finance ministry last year requesting the “return of the gold.”
“Our Gold is Not Safe”
The debate over Germany’s gold reserves was previously largely confined to the far-right Alternative for Germany (AfD) party, which has repeatedly called for repatriation on nationalist grounds. However, the issue is now entering mainstream political discourse.
Katharina Beck, finance spokesperson for the Green Party in the Bundestag, also supports the relocation of the gold, describing it as “an important anchor of stability and trust” that should not be “held hostage in geopolitical disputes.”
However, Clemens Fuest, President of the Ifo Institute, one of Germany’s leading economic think tanks, cautioned against such a move, warning it could have unintended consequences. “It would be like pouring gasoline on the fire,” Fuest told Rheinische Post.
Germany’s total gold reserves are valued at approximately €450 billion ($480 billion). Currently, half of these reserves are stored in the Bundesbank’s vaults in Frankfurt am Main, 37% are held by the Federal Reserve Bank of New York, and 12% are kept at the Bank of England in London, a global hub for gold trading. The Bundesbank maintains that the stored gold stocks are regularly audited.
Bundesbank President Joachim Nagel recently dismissed concerns about the gold held at the Federal Reserve during the International Monetary Fund’s (IMF) autumn meetings in Washington D.C. in October, stating there was “no need to worry.”
Frauke Heiligenstadt, finance policy spokesperson for the Social Democrats, the junior partner in Germany’s governing coalition, acknowledged concerns regarding the gold reserves but stressed there was no cause for panic. “Germany’s gold reserves are well diversified,” she said, adding that half are located in Frankfurt, “guaranteeing maneuverability.” She also argued that holding gold in New York is logical, “because Germany, Europe and the United States are closely linked in terms of monetary and fiscal policy.”
However, the increasingly assertive rhetoric from the Trump administration has fueled calls for repatriation within Chancellor Merz’s Christian Democrats as well.
“Due to the Trump administration, the U.S. is no longer a reliable partner,” stated Ulrike Neyer, an economics professor at Düsseldorf University, to Rheinische Post.
