Germany and Italy are under increasing pressure to bring back over $245 billion worth of national gold reserves currently stored at the New York Federal Reserve, as rising geopolitical concerns and U.S. political uncertainty fuel debates about sovereignty and security
1. Why Now? Rising Geopolitical Concerns
Prompted by former President Trump’s ongoing criticism of the Federal Reserve’s independence and broader political volatility, financial watchdogs argue gold held abroad may be vulnerable or inaccessible during crises
2. The Scale of the Reserves
- Germany: 3,352 tonnes total, with over 37% stored in New York (part of its 2nd-largest global gold reserve)
- Italy: 2,452 tonnes total, similarly holding over a third at the Fed
- Combined holdings estimate to $245 billion in custody abroad
3. Political Voices & Advocacy
- Germany’s Fabio De Masi (BSW) emphasizes repatriation as essential “in turbulent times”
- Ex-MP Peter Gauweiler (CSU) warns against shortcuts, calling for “physical control” over national reserves
- The Taxpayers Association of Europe has officially appealed to German and Italian authorities, citing threats to Federal Reserve autonomy under Trump founderfodder
4. Historical Context & Repatriation Precedents
- Germany previously repatriated 674 tonnes from the U.S. and France between 2013 and 2017, storing 37% domestically
- Other nations, like the Netherlands and Venezuela, have executed partial gold repatriation moves in recent years
5. Balancing Risks and Relations
- The Bundesbank and Bank of Italy emphasize ongoing reviews of storage locations, citing security and liquidity benefits from New York vaults
- Critics caution that mass repatriation could strain diplomatic ties with the U.S., potentially triggering financial or policy repercussions
🔍 What Comes Next
- Policy reassessment: Central banks are expected to re-evaluate reserve distributions and possibly begin physical transfers.
- Legislative push: Calls may emerge within Germany’s Bundestag and Italy’s parliament for formal action.
- Global trend: A survey of 70+ central banks shows growing interest in keeping gold assets domestically during uncertain times
