Politicians in Germany are calling for gold stored at the Federal Reserve Bank of New York to be withdrawn due to concerns about the policies of President Donald Trump, it has been reported.
Senior officials from the Christian Democratic Union (CDU), which is likely to lead the next German government, are discussing exporting the precious metal from the U.S., the German newspaper Bild reported.
The German Central Bank (Deutsche Bundesbank), which manages the asset, told Newsweek that the Fed in New York was a trustworthy partner for its gold.
A map below, produced by Newsweek, outlines other countries which are known to keep gold at the Federal Reserve.
Illustrative image from 2020 shows sold bullion bars at the ABC Refinery in Sydney.
Illustrative image from 2020 shows sold bullion bars at the ABC Refinery in Sydney.
David Gray/Getty Images
Why It Matters
Considered a safe haven amidst global trade uncertainties, gold reserves are an essential component of national wealth and financial security, often used as a hedging tool against inflation and currency fluctuations.
Germany holds the world’s second-largest gold reserves, 1,236 metric tons, 37 percent of which worth $123 billion are kept at the Federal Reserve in Manhattan, Politico reported.
Reports that Trump’s tariffs, which include a 20 percent levy on EU goods, may add to calls by German politicians wanting to remove gold from the U.S. and increase concerns among U.S. allies that Washington is no longer a reliable partner.
What To Know
Following World War II, Germany earned its wealth after exports surged, causing large trade surpluses with other nations which were converted into gold under the Bretton Woods system. Germany is among countries that had started to keep some of its gold abroad over post-war concerns its reserves were at risk from the Soviet Union.
But there are growing calls for this gold to be removed from the U.S. such as from Marco Wanderwitz, a former German government minister, according to Bild.
This question of removing Berlin’s gold from the U.S. gained traction even before Trump imposed sweeping 20 percent tariffs on the European Union.
Michael Yeager, a member of the European Taxpayers Association, told the same paper it would be better to return all German gold reserves to Frankfurt or at least to Europe quickly.
The Bundesbank told Newsweek on Tuesday that the key factors for the weighting of gold reserves are primarily the goals of security and tradability, to be able to sell gold or exchange it for foreign currencies when needed.
The statement also said that it regularly evaluates the storage locations of its gold holdings and added that the New York Fed is and will remain an important storage location for its gold.
“We have no doubt that we have a trustworthy and reliable partner in the Fed in New York for the storage of our gold holdings,” the statement added.
The U.S. has the world’s largest gold depository and among countries that keep its gold at home, according to Bunker Blog. Others include France, Russia, China, Turkey, Taiwan, Saudi Arabia, Great Britain and Spain. Several countries do not publicly reveal where their their gold reserves are stored.
As illustrated in the map above, countries whose assets are present in the U.S include Italy, which keeps up to half of its reserves in New York, according to Market Watch. Lebanon also keeps an estimated 40 percent of its gold reserves in New York, according to Bunker Blog.
In 2014, 122.5 tons of Dutch gold reserves were returned to Amsterdam from New York after the Dutch Central Bank said that in times of financial crisis, it was better to have the gold near at hand. The Netherlands retains gold reserves in New York as well as in Ottawa and London.
Meanwhile, the Reserve Bank of India transferred 100 metric tons of gold from the U.K. to domestic vaults, making it one of the largest gold movements since 1991, NDTV reported in June 2024. India’s total gold holding is 822 metric tons, with a significant portion stored in foreign vaults, including in New York, the outlet said.
What People Are Saying
Michael Yeager, a member of the European Taxpayers Association, told Bild it would be better to “bring all German gold reserves to Frankfurt or at least to Europe as quickly as possible.”
Christian Democratic Union (CDU) lawmaker Marco Wanderwitz told the same newspaper “of course, the question now arises again,” about returning gold to Germany from the U.S.
Bundesbank in a statement to Newsweek: “We have no doubt that we have a trustworthy and reliable partner in the Fed in New York for the storage of our gold holdings.”
What Happens Next
Over half of Germany’s Bundesbank reserves are stored in Frankfurt and outside the U.S., while the remainder is held at the Bank of England.
Politico reported that while calls in Germany for the repatriation of its gold from the U.S. may become stronger, the Bundesbank had said in February that it still had confidence in the Federal Reserve.
Update 04/08/25, 7.30 a.m. ET: This article has been updated with a statement from Germany’s Central Bank.