Many news headlines can easily mislead the market into believing that central banks are selling off their gold reserves on a massive scale. Rhona O'Connell, Head of Europe, Africa, and Asia Markets at StoneX, states that this is not the case. Central banks are simply adjusting the storage locations of their gold reserves. The core motivation behind this is the growing market concern about the risk of sanctions and seizure of overseas reserves. She uses the examples of the French and Dutch central banks to analyze this global wave of gold migration by central banks. The Dutch central bank announced its gold transfer plan on September 2nd, with a total of 86 tons of gold being transferred across regions, attracting widespread attention in the global precious metals market.

Bank of France and the Netherlands Operations Revealed: Book-based Exchange + Physical Transfer, Not a Gold Sell-off

Ronna O'Connell noted that between June 2025 and January 2026, the Bank of France sold 129 tons of gold stored in New York, less than 5% of its total official gold reserves of 2,437 tons. This was subsequently repurchased in the European market, essentially transferring the gold to Paris. News reports at the time were misleading, emphasizing only the sale of gold stored in the US without mentioning the subsequent repurchase in Europe; it was essentially just a change in the location of the gold. The Netherlands followed suit with a similar operation, largely following the same logic. 59 tons of gold underwent a location change, being transferred to London vaults; the other 27 tons were physically transported, directly from New York and Ottawa back to Zeist in the Netherlands. This physical transfer likely avoided the process of recasting into London-deliverable gold bars. The Dutch central bank transferred a total of 86 tons of gold, consisting of 59 tons of replacement and 27 tons of physical transport. Dutch Central Bank Governor Olaf Sleijpen said that this gold migration has enhanced the tradability of the Netherlands' gold reserves. While the central bank anticipates never needing to use these reserves, it is essential to strengthen the country's economic resilience and crisis response capabilities.

Sanctions risks sound alarm bells, prompting global central banks to rethink reserve security.

The risk of asset seizure is the primary driving force behind this series of gold relocations. Ronna O'Connell analyzes that the acceleration of this relocation wave stems from the 2022 freezing of approximately $300 billion in Russian central bank reserves by Western countries. This event sent a signal to central banks of many non-aligned countries: overseas reserves denominated in US dollars are susceptible to freezing and seizure, while gold stored in domestic vaults is not subject to such risks. Another recent related event has also attracted market attention: the Bank of England holds Venezuelan gold, which will remain frozen until the British government recognizes the current Venezuelan regime. Ronna O'Connell adds that Venezuela recently requested the return of its gold, and reports have mentioned US involvement in related negotiations, suggesting a possible connection between this event and related US-Venezuela transactions.

The structure of the Netherlands' gold reserves has undergone a major change, highlighting the value of gold as an anchor of trust.

The Dutch central bank stated that this gold relocation aims to strengthen crisis response capabilities and enhance the liquidity and tradability of reserve assets. The central bank explained that gold stored in New York and Ottawa cannot be quickly and directly accessed in a crisis scenario. Placing a larger proportion of gold in London strengthens gold's role as an "anchor of trust." The central bank considers gold the ultimate reserve asset, ideally suited for hedging against extreme systemic risks. Prior to this transfer, nearly 31% of the Netherlands' gold reserves were held domestically, approximately 18% in London, over 31% in New York, and nearly 20% in Ottawa. After the asset transfer, 32% of official gold reserves are now in London, with New York and Ottawa each holding 18.5%. Following this adjustment, the Netherlands has significantly reduced the proportion of its gold reserves held in North America, shifting more reserves to London and its home country, thus optimizing the efficiency of reserve access during crises.

Conclusion

The gold relocation operations by the central banks of France and the Netherlands have clarified the market's misinterpretation of "central banks selling off gold," revealing it as a large-scale transfer of gold assets driven by reserve security considerations. The 2022 freeze on overseas foreign exchange reserves profoundly changed the assessment standards for reserve asset security by central banks worldwide, making the location of physical gold storage a key consideration in reserve management. The Netherlands, by adjusting its gold storage distribution and reducing the proportion held in North America, has strengthened reserve liquidity during crises. These central bank actions continue to support the long-term investment value of gold and also indicate that the global official gold reserve storage pattern will continue to evolve, making it worthwhile for precious metal investors to continuously monitor the subsequent actions of central banks around the world. Spot gold daily chart source: FX678. As of 12:19 PM Beijing time on September 11, spot gold was trading at $4320.77 per ounce.