If you think that the end of the Cold War meant gold would no longer be the focus of international relations, you might need to reassess. **With Trump returning to the White House, the fate of Germany's 3,352 tons of gold has become a source of collective anxiety for Europeans.** On one hand, geopolitical rifts are deepening, and on the other, the uncertainty of U.S. financial policies has truly alarmed the Germans this time.
As the world's second-largest holder of gold, the German central bank currently possesses about 3,352 tons of gold. About one-third of this is stored long-term in the vaults of the New York Federal Reserve. This arrangement dates back to the Cold War—during that era overshadowed by nuclear threats, storing gold in the U.S. was viewed as the best choice for strategic asset safety management.
But now, times have changed; is this 'safe deposit box' still safe?
With Trump's return, alarms are ringing for German gold.
In the past, calls to withdraw gold from the U.S. primarily came from Germany's far-right party, **'Alternative for Germany.'** However, with Trump back in power, the situation has subtly changed—more mainstream politicians and media are beginning to address the issue of gold security.
The German Taxpayers' Association directly wrote to the German central bank and the Ministry of Finance, clearly demanding the withdrawal of gold, citing the reason: 'Trump is attempting to control the Federal Reserve, and Germany's gold may become a political bargaining chip for the U.S.'
European Parliament member and senior CDU member Markus Ferber warned: 'The U.S. is no longer the absolutely reliable partner it once was. In the future, we cannot rule out the possibility of Trump creatively using foreign gold reserves to resolve issues.'
German public broadcasters ZDF and ARD have successively launched in-depth reports questioning the safety of German gold, further igniting public concern.
Even the previously very cautious official voices aimed at avoiding provoking the U.S. have begun to waver. The German central bank, while emphasizing 'trusting the New York Federal Reserve,' also has to admit that it is strengthening reserve diversification and increasing the frequency of inventory checks.
Why did Germany store gold in the U.S.? And why the anxiety now?
The gold layout during the Cold War had its historical logic:
Geopolitical security: When the Soviet threat still existed, keeping gold in the U.S. was safer;
Financial pillar: Storing it in New York reinforces military and economic alliance relationships with the U.S.;
Accumulation of trade surplus: In the 1950s and 60s, Germany's exports surged, accumulating a large amount of dollars that needed to be converted into gold and stored in international financial centers.
But entering the 21st century, the international landscape has already changed. Especially after the outbreak of the Russia-Ukraine conflict, the security situation in Europe has once again become tense. Germany has chosen to diversify storage locations, and its gold is currently stored in:
Frankfurt Central Bank Headquarters;
New York Federal Reserve;
Bank of England, London.
The German central bank has quietly withdrawn 300 tons of gold from New York between 2014 and 2017, claiming it was 'to enhance domestic confidence.' Now, with Trump's tough policies and ongoing shocks to the independence of the Federal Reserve, calls for 'gold to come home' are rising again.
What would happen if Trump used foreign gold stored in the U.S.?
Although theoretically, the foreign gold stored at the New York Fed still belongs to the central banks of various countries and is not under the direct control of the U.S. government, the practical operation of **'physical control rights' over gold** remains a sensitive topic.
Mlion.ai's macro-financial risk assessment model analysis indicates:
If the U.S. government takes freezing or restricting measures against foreign gold in the U.S., the international financial order will face severe shocks;
In particular, the status of the U.S. dollar as the global reserve currency will be subjected to deeper questioning;
For Germany, in the event of extreme circumstances, wanting to use this portion of gold will become complicated or even obstructed, severely affecting asset liquidity and the stability of foreign exchange reserves.
The practical difficulties and costs of Germany withdrawing gold.
However, withdrawing gold on a large scale in the short term is not an easy task:
Logistics security issues: High value, large volume, with extremely high transport risks;
Cost issues: Shipping fees, insurance, security measures, all at sky-high prices;
Political signals: Withdrawing gold will inevitably be interpreted as a lack of trust in the U.S. credit system, potentially leading to diplomatic friction.
The current strategy of the German central bank is to continue to reduce single-point risks through sampling inspections and decentralized storage. According to the latest statement, Germany has conducted sampling checks on 13% of its gold reserves stored in New York and stated that it will maintain regular inspections in the future.
How does the market view it? Opportunities also exist behind risks.
In the current uncertain macro environment, gold is not only a safe-haven asset but also a value anchor during financial system turbulence.
Mlion.ai's precious metals market sentiment index shows that in the past week, due to rising expectations of Trump's policies, demand for gold ETFs and physical gold bars has increased. The discussion of Germany's gold reserves has invisibly deepened investors' confidence in the long-term value of gold.
Investors may consider:
Using Mlion.ai's gold price volatility analysis tool to capture price band opportunities arising from geopolitical events;
Pay attention to dollar liquidity indicators to judge the flow rhythm of safe-haven funds between gold and the dollar;
Combining on-chain data and market sentiment analysis to position highly correlated digital gold assets such as Bitcoin (BTC) and others.
Conclusion:
A statement from Trump has ignited Germany's long-hidden 'gold anxiety.' The future of 3,352 tons of gold not only concerns trust between Germany and the U.S. but also reflects the underlying fractures in the global monetary system.
In an era of accelerated reconstruction of global geopolitical and financial order, asset security is not just about numbers on paper; it is a game of power, rules, and trust.
Mlion.ai, accompanying you in turmoil to see the trends and protect wealth.
Disclaimer: This article is for informational sharing only and does not constitute any investment advice. Investment involves risks; please make prudent decisions based on your actual situation.