Germany holds one of the world’s largest gold reserves, second only to the United States. For many years, a huge portion of this treasure—about 1,200 tons—has been kept deep underground in a secure vault at the US Federal Reserve Bank in New York.
Historic Gold Stored Abroad
The value of this gold is estimated to be around €113 billion. That’s roughly 30% of Germany’s total gold stock.
This arrangement goes back to the time after World War Two. At that time, Germany began earning massive trade surpluses through exports. These surpluses were converted into gold under the Bretton Woods system, which governed global financial exchanges back then. Holding gold in New York made sense. It meant Germany had quick access to US dollars if it ever faced a serious economic crisis.
Over the decades, the US was seen as a stable and dependable partner. So, storing part of Germany’s national wealth in America gave policymakers peace of mind. The remaining gold reserves are kept in Europe. Around half are stored in Frankfurt, while another 13% are held in London.
Concerns Over Trust and Access
Recently, however, things have changed. Some top German political voices are now expressing concern about keeping such a large amount of gold overseas. These concerns are centered around changing political situations in the United States, especially due to the unpredictable actions of past and possible future leaders.
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There are now discussions within Germany about removing the gold from New York entirely. The idea is to either bring it home to Frankfurt or at least move it somewhere else in Europe. The main worry is whether the US remains a trustworthy guardian of Germany’s gold.
Adding to this tension are recent moves from Washington, including new tariffs placed on goods from the European Union. These types of actions have raised questions in Germany about relying too heavily on the US, especially in matters involving large national assets.
Some leaders believe that German officials should have regular and personal access to the gold stored abroad. They argue that Germany should be able to send inspectors to physically check the gold bars, count them, and confirm that everything is secure. In the past, efforts to inspect the gold in New York were reportedly denied, leading to even more frustration and suspicion.
A prominent taxpayers’ association in Europe has also voiced the opinion that all German gold should be brought back to Europe without delay. The belief is that Germany should have full control over its own wealth, especially when global politics appear unstable.
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Wider Push for Independence
This debate over gold is part of a bigger shift happening in Germany. The country is trying to become more independent in several areas. One key area is national defense. Germany has introduced major financial reforms to increase military spending. Under these reforms, certain defense projects—equal to about 1% of the country’s total economic output—will not be limited by existing rules on borrowing.
Alongside this, a huge €500 billion infrastructure fund has been introduced. The money is set to be used to repair Germany’s roads, railways, and public services. These efforts are meant to rebuild systems that many believe have been neglected for too long.
All these moves show a strong desire within Germany to stand on its own feet, whether it comes to defending its borders or protecting its financial assets like gold. By reducing dependence on outside forces, Germany appears to be rethinking how it secures its wealth and stability.
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Even though the German central bank still trusts the US Federal Reserve as a reliable partner, these ongoing discussions make it clear that confidence is being tested. The question now is how much longer Germany will continue to store such a large part of its national treasure abroad. The fact that some are calling for it to be moved back home shows a growing sense of caution in today’s changing world.