Germany’s gold in America: Is it time to bring it all back?

A growing number of German politicians, particularly from the center-right Christian Democratic Union (CDU), are now openly expressing unease about the continued storage of such a large share of national wealth on American soil.

Their concerns are not centred on conspiracy theories or fringe economic arguments, but rather on recent developments in US foreign policy, trade relations, and domestic politics.

US President Donald Trump’s administration has imposed wide-ranging tariffs, including a 20 percent levy on goods imported from the European Union, impacting German exports and sparking fears of an escalating trade conflict.

His rhetoric has often targeted Germany directly, criticising its industrial policy and accusing the country of under-contributing to defensc and economic alliances. His vice president has described Germany as a “pathetic freeloader,” further aggravating tensions.

In addition to economic friction, political developments within the United States are also contributing to the sense of unease. Allies of the Trump administration have been accused of interfering in European politics, including support for far-right groups that German intelligence services have labelled a constitutional threat.

The reemergence of nationalist symbolism and populist messaging within US political circles has only amplified concerns among German lawmakers.

“Of course, the question now arises again,” said CDU lawmaker Marco Wanderwitz, in remarks to Bild. Wanderwitz, who is now leaving parliament, had already raised the issue over a decade ago.

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In 2012, he requested an inspection of the gold stored in the US as part of a broader effort to compel the Bundesbank to take a more hands-on custodial role or consider relocating the gold to Germany. His requests were denied at the time, but the issue has now returned to the national conversation with new momentum.

Markus Ferber, a CDU member of the European Parliament, has echoed the demand for greater oversight. “Official representatives of the Bundesbank must personally count the bars and document their results,” he told Bild.

Michael Jäger, representing the Taxpayers Association of Europe, has gone even further, stating that “it would be better to bring all German gold reserves to Frankfurt or at least to Europe as quickly as possible.”

How much gold does Germany have in the US?

Germany holds one of the largest official gold reserves in the world, second only to the United States. Out of its total reserve of approximately 3,350 metric tonnes, about 1,236 tonnes — roughly 37 percent — are currently held at the Federal Reserve Bank of New York.

This amounts to over €113 billion (or around $123 billion), safeguarded in what has historically been regarded as one of the most secure and reputable bullion depositories globally.

These reserves are managed by the Deutsche Bundesbank, Germany’s central bank, and have been stored across various global financial centres for decades.

As of now, in addition to the gold held in New York, another 430 tonnes remain at the Bank of England, while over half of Germany’s reserves are now stored domestically in Frankfurt.

The decision to keep a large portion of the country’s gold abroad can be traced back to post-World War II dynamics. As Germany re-established itself economically during the postwar boom, it converted its substantial trade surpluses into gold under the Bretton Woods system.

With Cold War tensions running high and fears of a potential Soviet advance into Western Europe, German authorities opted to store their newly accumulated wealth in secure Allied locations — namely New York, London, and Paris — for safety and accessibility in times of crisis.

But in recent months, longstanding assumptions about the safety and political neutrality of overseas storage — particularly in the United States — are being reexamined in Germany’s political mainstream.

What does history tell us?

These calls are not without precedent. In 2013, amid pressure from public campaigns and political agitation — particularly from right-wing populists — the Bundesbank initiated a major repatriation effort.

At the time, a large portion of German gold was still stored in the vaults of the Banque de France in Paris.

The Bundesbank moved 374 tonnes from Paris to Frankfurt and another 300 tonnes from New York back to Germany, with the aim of storing at least half of its total reserves on home soil by 2020. That target was successfully achieved.

The Bundesbank justified the move from Paris by noting that Germany and France both operate within the eurozone, thus negating the strategic necessity of holding gold reserves in Paris for foreign exchange purposes.

Yet, it chose to maintain sizable holdings in both New York and London — locations that offered strong institutional frameworks and proximity to key financial markets.

Despite the renewed scrutiny, the Bundesbank continues to voice confidence in its arrangements with the US Federal Reserve. In a February press conference, Bundesbank President Joachim Nagel stated: “We have a trustworthy and reliable partner in the Fed in New York for the storage of our gold holdings. It does not keep me awake at night. I have complete confidence in our colleagues at the American central bank.”

The Bundesbank later reaffirmed this view in a separate statement, adding that “it regularly evaluates the storage locations of its gold holdings” and that the New York Fed “is and will remain an important storage location for its gold.”

Nonetheless, in a global climate of increased volatility — both economic and political — the mere presence of these gold reserves in another country, especially one with rising policy unpredictability, is prompting deeper reflection in Berlin.

Why is Germany’s gold ‘important’?

Gold plays a unique role in national economic security. It serves as a hedge against inflation, a store of value in times of crisis, and a buffer against currency volatility.

For Germany, whose post-war economic rise was deeply tied to exports and stability, these reserves are not only financial assets but symbols of national resilience and credibility.

That’s why, although the idea that such assets could ever be unsafe might have once seemed far-fetched — especially when stored in long-standing allied nations — it is no longer dismissed as implausible.

The notion that Germany could consider additional repatriation of its gold, or at the very least, enforce stricter verification protocols, is gaining traction beyond populist circles. This shift reflects not just a changing transatlantic dynamic but a broader reassessment of risk in an increasingly multipolar and unstable world.

It’s worth noting that other countries have already taken similar steps. In 2014, the Netherlands repatriated 122.5 tonnes of gold from the Federal Reserve Bank of New York to Amsterdam, citing a preference to have the metal closer to home during times of potential crisis.

The Dutch still retain reserves in the US, Canada and the UK, but the move was widely interpreted as a hedge against geopolitical risk.

Similarly, countries such as France, China, Turkey, and Russia either store all or most of their gold domestically or have undertaken similar repatriation efforts. Not all nations reveal the exact location of their reserves, but the trend toward domestic storage or regional consolidation is unmistakable.

With inputs from agencies