Germany considers withdrawing gold from the US - Trump's tariff policies have increased concerns in Berlin
Germany may seek to repatriate the large amount of gold it currently stores in New York, amid concerns about US President Donald Trump's unpredictable tariff policies.
The Telegraph newspaper, based in the United Kingdom, says that a number of senior figures within the Christian Democratic Union (CDU) party, which will lead the next German government, have discussed the possibility of withdrawing its gold stock from the US.
Currently, Germany has the second largest gold reserves in the world with around 3,350 tons, behind only the United States with 8,100 tons.
Germany's appetite for gold is well documented due to its turbulent history. After its defeat in World War II, the country's coffers were emptied. But a postwar economic boom gave it the financial means to start hoarding the yellow metal, helped along by the Bretton Woods system.
By the 1960s, Germany had become one of the world's largest gold holders, with a large portion of its reserves stored abroad, in New York, London, and Paris, to ensure access in the event of conflict. Behind the decision to store that gold in these countries was the trust the country had built with its Western allies, particularly the United States.
But, under the current geopolitical climate, this confidence may have waned among members of Germany's future ruling party.
A CDU member of the European Parliament told Bild last week that "at the very least, German officials should be allowed to personally inspect the bars held in the US."
The German central bank launched an operation to bring back some of its gold stored abroad, with the aim of having at least half of its reserves on domestic soil from 2020 onwards. This effort resulted in the transfer of 300 tons to Frankfurt from New York and around 374 tons from Paris.
Today, Germany still has about 1,200 tons, or about a third of its gold, in the vaults of the New York Federal Reserve in Manhattan, plus another 430 tons at the Bank of England. At current prices, the gold held in the US would be valued at over 113 billion euros.
A member of the European Taxpayers Association said it would be better to "bring all German gold reserves to Frankfurt or at least to Europe as soon as possible."
The New York Federal Reserve, as the world's largest gold custodian, holds about 6,300 tons of gold on behalf of more than 30 foreign central banks. In addition to Germany, other prominent European economies that hold their gold in New York include Italy and Switzerland.
However, the Bundesbank stressed earlier this year that "the New York Federal Reserve is a reliable partner in safeguarding our holdings."
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