As the transatlantic relationship undergoes a seismic shift and the unpredictability of the Trump administration raises concerns, Germany is facing increasing calls to withdraw its vast gold reserves from US vaults. The move, advocated by leading economists and financial experts, is seen as a strategic step towards greater independence from the United States.
Germany holds the world’s second-largest national gold reserves, valued at approximately €164 billion (£122 billion), with 1,236 tonnes stored in the vaults of the US Federal Reserve in New York. Emanuel Mönch, a former head of research at the Bundesbank, Germany’s central bank, has warned that it is now “too risky” to keep so much gold in the US under the current administration.
“Given the current geopolitical situation, it seems risky to store so much gold in the US,” Mönch told the financial newspaper Handelsblatt. “In the interest of greater strategic independence from the US, the Bundesbank would therefore be well advised to consider repatriating the gold.”
Michael Jäger, the head of the European Taxpayers’ Association (TAE) and the Association of German Taxpayers, has echoed these sentiments, arguing that the US’s “stated desire to seize Greenland” should prompt Germany to act swiftly. “Trump is unpredictable and he does everything to generate revenue. That’s why our gold is no longer safe in the Fed’s vaults,” Jäger told the Rheinische Post.
The calls for repatriation have gained traction across the political spectrum, with Katharina Beck, the finance spokesperson for the opposition Green party, voicing support for relocating the gold bars, which she describes as an “important anchor of stability and trust” that “must not become pawns in geopolitical disputes.”
However, not all experts are convinced that such a move is necessary. Clemens Fuest, the president of the Institute for Economic Research (Ifo) and one of Germany’s most prominent economists, has warned that repatriating the gold could lead to “unintended consequences” and “only pour oil on the fire of the current situation.”
Frauke Heiligenstadt, the parliamentary group spokesperson on financial policy for the Social Democrats, the junior partner in the government, has also sought to allay concerns, stating that Germany’s gold reserves are “well diversified” and that having gold in New York “makes sense” due to the close financial ties between Germany, Europe, and the US.
Nonetheless, with the Trump administration’s rhetoric hardening towards its Western partners, an increasing number of Chancellor Merz’s Christian Democrats have voiced support for the relocation of Germany’s gold reserves. As the geopolitical landscape continues to shift, the fate of Germany’s vast gold holdings remains a subject of heated debate.
