Central banks in many countries are busy buying or repatriating gold.
2026-09-23 19:44:11
For decades, the Federal Reserve Bank of New York has been considered a "safe haven" for some of its gold reserves by governments around the world. However, under the erratic rule of President Donald Trump, coupled with a generally volatile geopolitical environment, this situation is rapidly changing. Several European countries have already moved their gold back from New York, or are facing pressure to do so, due to concerns about the stability of the regulatory environment under Trump. According to the World Gold Council's 2025 Central Bank Gold Reserves Survey, 59% of central banks globally now prefer to keep their gold reserves domestically, compared to just 41% two years ago. 
Trump's tariff war and his blows to Iran have exacerbated the outflow of foreign gold reserves from New York. However, the outbreak of the Russia-Ukraine conflict in February 2022 and the retaliatory measures taken by the G7 countries against Russian overseas assets also played a significant role. Non-aligned countries were particularly alarmed by the unprecedented economic sanctions imposed on Russia: India has launched one of the largest gold repatriation efforts since 2022, and now holds approximately 77% of its total gold reserves in Mumbai and Nagpur. According to Carsten Menke, a researcher at the Swiss private bank Julius Baer, the Russia-Ukraine conflict is "a major factor leading to a shift in gold's role as a geostrategic asset." Menke believes that even if a peace agreement is eventually reached regarding Ukraine, this trend of gold repatriation is unlikely to reverse. The international exchange of the US dollar for gold ended in 1971 during Richard Nixon's presidency, due to concerns about a run on US reserves. But gold's reputation as a safe-haven investment, especially during periods of geopolitical turmoil, remains undiminished. Increased demand from central banks has driven the price of this precious metal up 140% in the past three years. Gold prices rose by about 65% in 2025 alone, hitting a record high of just over $5,000 per ounce in January of this year. According to a report released by the European Central Bank in June, gold has surpassed US Treasury bonds to become the world's number one reserve asset, accounting for 27% of the total, up from 20% in 2025. In the second quarter of this year alone, central banks purchased a record 289 tons of gold, five times the amount purchased in the first quarter. Besides buying more gold bars, some European central banks are also busy moving gold. The Netherlands recently transferred 86 tons of its 313 tons of gold stored in the US and Canada to London "in light of escalating geopolitical instability." It sold 59 tons of gold in New York to buy new gold bars in London, but actually transported more than 27 tons to the Bank of England—the most popular international gold vault, holding approximately 400,000 gold bars valued at around $200 billion. "We don't expect to ever need (this gold), but we do need to strengthen our resilience and preparedness," said Olaf Sleijpen, Governor of the Dutch Central Bank. France recently completed a gold repatriation project that began in the 1960s during the presidency of Charles de Gaulle. Fearing a devaluation of the dollar (a fear that proved correct), de Gaulle converted all of France's holdings of US dollars into gold between 1963 and 1966 and transported it from London and New York back to Paris. This operation, known as "Vide Gousset," involved 44 top-secret shipping trips and 129 flights, bringing back over 3,000 tons of gold. This long journey home will conclude between January 2025 and 2026, with the French central bank selling 129 metric tons of gold bars held in New York—approximately 5% of the country's total reserves—and purchasing new, higher-quality gold bars in Paris. France profited approximately $15 billion from this conversion and stated that the move was driven by logistical rather than political reasons. However, not all EU countries are bringing their gold back home. Germany, with 3,350 tons—worth approximately $475 billion—holds the world's second-largest gold reserves, after North America. Slightly half of this is stored in Frankfurt, about 37% in New York, and 13% in London. In March, the center-right Alternative for Germany (AfD) called for all of Germany's gold to be moved back to Berlin, a suggestion supported by some of the country's top economists. Emanuel Mönch, former head of research at the Bundesbank, and Michael Jäger, president of the European Taxpayers Association and the German Taxpayers Association, both stated that the 1,236 tons of gold stored in New York were not safe under Trump's administration. So far, the German government and central bank have resisted these calls, arguing that the reserves in Frankfurt ensure the country's resilience against international crises. Some German economists have also proposed selling some of the gold and injecting the proceeds into the country's struggling economy. Despite having Europe's fifth-largest economy, Spain's gold reserves are embarrassingly small compared to its neighbors—just 281 tons, worth approximately $40 billion, ranking 20th globally. Spain's gold reserves were severely depleted during the Civil War from 1936 to 1939, when the Republican government emptied its vaults to fight against the (ultimately victorious) nationalist forces of Francisco Franco. Between 2004 and 2007, the Socialist government led by Prime Minister José Luis Zapatero authorized the sale of more than half of Spain's remaining gold reserves, claiming the precious metal was no longer profitable (a decision that, in hindsight, was insane and violated the central bank's independence). Although the majority of its remaining gold reserves are held by Spanish banks, their exact distribution is kept secret, with smaller amounts stored in London, Basel, and New York. Some commentators have suggested that bringing Spanish gold back home would help strengthen the Eurozone's fiscal autonomy, but so far, neither the central bank nor the government has shown any indication of doing so. Italy holds 2,452 tons of gold reserves, worth approximately $350 billion, ranking third in the world. These reserves are distributed across Rome (45%), New York (43%), and London and Bern (6% each). However, in Rome, the focus of the debate is on the ownership of the gold reserves, not their repatriation. The center-right government, led by Prime Minister Giorgia Meloni, claims that the gold reserves held by Italian banks belong to the nation and the Italian people—a nation's gold reserves are typically considered the exclusive property of its central bank, independent of government operations. Meloni's Brothers of Italy party claims it wants to ensure these reserves are not misused or sold; however, the EU has warned that any actions that undermine central bank independence would violate EU fiscal regulations, under which gold, along with foreign exchange reserves, forms the basis of the euro's stability. For this reason, gold is off-limits to central governments. As a global fixed benchmark, the gold standard is long gone. But gold has not lost its allure, whether as an indestructible symbol of wealth or a reliable investment in times of turmoil. New York’s vaults may be slightly emptier than they were a few years ago—but many places around the world now have more gold stored than ever before.
Trump's tariff war and his blows to Iran have exacerbated the outflow of foreign gold reserves from New York. However, the outbreak of the Russia-Ukraine conflict in February 2022 and the retaliatory measures taken by the G7 countries against Russian overseas assets also played a significant role. Non-aligned countries were particularly alarmed by the unprecedented economic sanctions imposed on Russia: India has launched one of the largest gold repatriation efforts since 2022, and now holds approximately 77% of its total gold reserves in Mumbai and Nagpur. According to Carsten Menke, a researcher at the Swiss private bank Julius Baer, the Russia-Ukraine conflict is "a major factor leading to a shift in gold's role as a geostrategic asset." Menke believes that even if a peace agreement is eventually reached regarding Ukraine, this trend of gold repatriation is unlikely to reverse. The international exchange of the US dollar for gold ended in 1971 during Richard Nixon's presidency, due to concerns about a run on US reserves. But gold's reputation as a safe-haven investment, especially during periods of geopolitical turmoil, remains undiminished. Increased demand from central banks has driven the price of this precious metal up 140% in the past three years. Gold prices rose by about 65% in 2025 alone, hitting a record high of just over $5,000 per ounce in January of this year. According to a report released by the European Central Bank in June, gold has surpassed US Treasury bonds to become the world's number one reserve asset, accounting for 27% of the total, up from 20% in 2025. In the second quarter of this year alone, central banks purchased a record 289 tons of gold, five times the amount purchased in the first quarter. Besides buying more gold bars, some European central banks are also busy moving gold. The Netherlands recently transferred 86 tons of its 313 tons of gold stored in the US and Canada to London "in light of escalating geopolitical instability." It sold 59 tons of gold in New York to buy new gold bars in London, but actually transported more than 27 tons to the Bank of England—the most popular international gold vault, holding approximately 400,000 gold bars valued at around $200 billion. "We don't expect to ever need (this gold), but we do need to strengthen our resilience and preparedness," said Olaf Sleijpen, Governor of the Dutch Central Bank. France recently completed a gold repatriation project that began in the 1960s during the presidency of Charles de Gaulle. Fearing a devaluation of the dollar (a fear that proved correct), de Gaulle converted all of France's holdings of US dollars into gold between 1963 and 1966 and transported it from London and New York back to Paris. This operation, known as "Vide Gousset," involved 44 top-secret shipping trips and 129 flights, bringing back over 3,000 tons of gold. This long journey home will conclude between January 2025 and 2026, with the French central bank selling 129 metric tons of gold bars held in New York—approximately 5% of the country's total reserves—and purchasing new, higher-quality gold bars in Paris. France profited approximately $15 billion from this conversion and stated that the move was driven by logistical rather than political reasons. However, not all EU countries are bringing their gold back home. Germany, with 3,350 tons—worth approximately $475 billion—holds the world's second-largest gold reserves, after North America. Slightly half of this is stored in Frankfurt, about 37% in New York, and 13% in London. In March, the center-right Alternative for Germany (AfD) called for all of Germany's gold to be moved back to Berlin, a suggestion supported by some of the country's top economists. Emanuel Mönch, former head of research at the Bundesbank, and Michael Jäger, president of the European Taxpayers Association and the German Taxpayers Association, both stated that the 1,236 tons of gold stored in New York were not safe under Trump's administration. So far, the German government and central bank have resisted these calls, arguing that the reserves in Frankfurt ensure the country's resilience against international crises. Some German economists have also proposed selling some of the gold and injecting the proceeds into the country's struggling economy. Despite having Europe's fifth-largest economy, Spain's gold reserves are embarrassingly small compared to its neighbors—just 281 tons, worth approximately $40 billion, ranking 20th globally. Spain's gold reserves were severely depleted during the Civil War from 1936 to 1939, when the Republican government emptied its vaults to fight against the (ultimately victorious) nationalist forces of Francisco Franco. Between 2004 and 2007, the Socialist government led by Prime Minister José Luis Zapatero authorized the sale of more than half of Spain's remaining gold reserves, claiming the precious metal was no longer profitable (a decision that, in hindsight, was insane and violated the central bank's independence). Although the majority of its remaining gold reserves are held by Spanish banks, their exact distribution is kept secret, with smaller amounts stored in London, Basel, and New York. Some commentators have suggested that bringing Spanish gold back home would help strengthen the Eurozone's fiscal autonomy, but so far, neither the central bank nor the government has shown any indication of doing so. Italy holds 2,452 tons of gold reserves, worth approximately $350 billion, ranking third in the world. These reserves are distributed across Rome (45%), New York (43%), and London and Bern (6% each). However, in Rome, the focus of the debate is on the ownership of the gold reserves, not their repatriation. The center-right government, led by Prime Minister Giorgia Meloni, claims that the gold reserves held by Italian banks belong to the nation and the Italian people—a nation's gold reserves are typically considered the exclusive property of its central bank, independent of government operations. Meloni's Brothers of Italy party claims it wants to ensure these reserves are not misused or sold; however, the EU has warned that any actions that undermine central bank independence would violate EU fiscal regulations, under which gold, along with foreign exchange reserves, forms the basis of the euro's stability. For this reason, gold is off-limits to central governments. As a global fixed benchmark, the gold standard is long gone. But gold has not lost its allure, whether as an indestructible symbol of wealth or a reliable investment in times of turmoil. New York’s vaults may be slightly emptier than they were a few years ago—but many places around the world now have more gold stored than ever before.
- Risk Warning and Disclaimer
- The market involves risk, and trading may not be suitable for all investors. This article is for reference only and does not constitute personal investment advice, nor does it take into account certain users’ specific investment objectives, financial situation, or other needs. Any investment decisions made based on this information are at your own risk.
