German experts and politicians are warning of the geopolitical risks of leaving Germany's gold reserves on U.S. soil, demanding their urgent transfer back home. The Bundesbank, however, insists that the gold is safe. Meanwhile, German gold worth over 160 billion euros remains stored in the vaults of the Federal Reserve Bank in New York.
Germany's gold reserves are among the largest in the world. After the United States, Germany ranks second globally. The Bundesbank currently stores approximately 1,236 tonnes of gold in the vault of the Federal Reserve Bank in New York, representing more than one-third of all reserves held there. These reserves are valued at approximately 164 billion euros. Half of Germany's gold is held in Frankfurt, while 13 percent remains in London. This diversification is meant to ensure security in the event of threats. Yet in today's reality, Donald Trump's policies are raising serious doubts among Germans.
Between 2013 and 2017, the Bundesbank already transferred a portion of its reserves from New York and Paris to Frankfurt, completely withdrawing from storage in the French capital. The aim was to increase control over its assets. Experts note that gold as a "crisis currency" has appreciated in value — just before Trump's appearance at the World Economic Forum in Davos on January 21, the price per ounce reached a record $4,887.82.
The primary source of German anxiety is Donald Trump himself, described as "unpredictable" and focused solely on the United States. Michael Jäger, head of the Taxpayers Association of Europe (TAE), warns: "Trump is erratic and will do anything to generate revenue. That is why our gold in the Fed's vaults is no longer safe." Jäger emphasizes the growing risk that the Bundesbank could lose access to its reserves and calls for the central bank to make an independent decision, free from political subservience.
Emanuel Mönch, former head of the Bundesbank's research division, shares a similar view. In a media interview, he stated: "Given the geopolitical situation, it currently seems risky to store such a large amount of gold in the United States. In the interest of greater strategic independence from the United States, the Bundesbank should consider a repatriation operation." Mönch argues that in an unstable world, German gold should not be exposed to external pressures.
Joining the chorus of critics is Katharina Beck, a representative of progressive German politics and financial sector spokesperson for the Green Party in the Bundestag. Beck emphasizes that gold reserves are "an important anchor of stability and trust" that "must not become a ball in geopolitical games." Beck suggests that under the Trump administration, the gold should be moved to Germany, which would provide the greatest security. In her view, the risk of the reserves being used as a tool of leverage is real, especially in the context of the neoimperialist policies of the United States.
Bundesbank President Joachim Nagel firmly rejects the idea of moving the gold, receiving support from governing coalition factions. Fritz Güntzler, spokesperson for the Christian Democratic (CDU) parliamentary group, believes that continuing to store part of the reserves in the United States remains advisable: "In the current situation, public speculation about withdrawing gold reserves is not helpful." Güntzler emphasizes the close financial ties between Germany, Europe, and the United States.
Frauke Heiligenstadt, spokesperson for the SPD, advises against panic: "Germany's gold reserves are well diversified. Half is held in Frankfurt, which ensures our ability to act." Heiligenstadt points to the practical rationale for the New York location, given the close financial ties with the United States. Similarly, Michael Hüther, director of the German Economic Institute (IW), argues that from the standpoint of rational monetary policy, it makes sense to keep the gold in the United States to secure transactions.
The debate is further fueled by rising gold prices. Experts note that in an era of protectionism and price wars, assets such as gold could become instruments of pressure.
In historical context, the decision to store gold in the United States was a strategic move during the Cold War, designed to protect it from a potential adversary behind the Iron Curtain. Today, however, with Trump at the helm, Germans see him as the greatest threat.
It is worth noting that similar debates are taking place in other countries. For example, Poland repatriated its gold from London in 2019, which could serve as a model approach worthy of emulation.
