GERMANY CONSIDERS REPATRIATING BILLIONS IN #GOLD FROM U.S. AMID TARIFF TENSIONS
Germany is weighing the possibility of withdrawing around 1,200 tonnes of gold—worth over €113 billion ($124.41 billion)—from the Federal Reserve Bank of New York. This consideration arises amidst rising trade tensions due to tariffs imposed by former U.S. President Donald Trump on the European Union.
With 3,352 tonnes in total reserves, Germany holds the world's second-largest gold stockpile. Currently, 30–37% of this gold is stored in New York—an arrangement rooted in Cold War-era strategies to ensure dollar liquidity during crises. The rest is held in Frankfurt (50%) and London (13%).
Calls for greater oversight or full repatriation have intensified from politicians such as CDU members Marco Wanderwitz and Markus Ferber. Their concerns center on fears that the U.S. might restrict access to the gold amid economic disputes.
The European Taxpayers Association has echoed these worries, urging for “immediate access” to gold reserves. This push comes alongside discussions around new EU debt instruments. However, Bundesbank President Joachim Nagel has maintained confidence in the Federal Reserve, calling it a "trustworthy partner."
This debate echoes Germany's previous gold repatriation campaign from 2013–2017, during which 674 tonnes were brought back from New York and Paris despite initial logistical hurdles. Only 5 tonnes were repatriated in 2013, highlighting the complexity of such operations.
Economically, Bundesbank estimates suggest that U.S. tariffs could reduce German GDP growth by 1.5 percentage points by 2027. Meanwhile, gold prices have surged past $3,100/oz amid growing market uncertainty.
Globally, there’s a shift toward domestic gold storage: 68% of central banks now prefer it, up from 50% in 2020, according to the World Gold Council's 2023 survey. This trend has accelerated due to U.S. sanctions against Russia and others, highlighting a global push for financial sovereignty.
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