Germany Mulls Moving 1,200-tonne Gold Reserves Out of US: Report
In a move that has sent shockwaves through the global financial markets, Germany is considering withdrawing its gold reserves stored in New York amid concerns over US President Donald Trump’s policy unpredictability. According to a report by Bild, Germany has stored around 1,200 tonnes of its gold, valued at roughly €113 billion (₹10.5 lakh crore), in the US for decades. This stockpile reportedly accounts for nearly 30% of Germany’s total gold reserves.
The decision to move the gold reserves out of the US is reportedly being driven by Germany’s concerns over Trump’s policy unpredictability, which has led to increased uncertainty in the global markets. The US has been storing gold reserves for several European countries, including Germany, the Netherlands, and France, since the 1950s. However, Germany’s decision to withdraw its gold reserves could have significant implications for the global financial system.
Germany’s gold reserves are currently stored at the Federal Reserve Bank of New York, which is one of the largest gold depositories in the world. The reserves are valued at around €113 billion, making them one of the most valuable gold reserves in the world. The gold is stored in the form of gold bars, each weighing around 400 troy ounces or 12.4 kilograms.
Germany’s decision to withdraw its gold reserves comes as the US and Germany are engaged in a trade war, with both countries imposing tariffs on each other’s goods. The trade war has led to increased tensions between the two countries, and Germany’s decision to withdraw its gold reserves could be seen as a sign of its concerns over the US’s economic policies.
The move could also have implications for the global gold market, which has been experiencing increased volatility in recent months. Gold prices have been rising in recent weeks, driven by concerns over the US-China trade war and the potential for a global recession. If Germany withdraws its gold reserves from the US, it could lead to increased demand for gold and higher prices.
Germany’s decision to withdraw its gold reserves is not without precedent. In 2013, the Swiss National Bank withdrew its gold reserves from the Bank of England, citing concerns over the bank’s ability to store the gold safely. The move was seen as a sign of Switzerland’s desire to diversify its gold reserves and reduce its reliance on foreign storage facilities.
The potential implications of Germany’s decision to withdraw its gold reserves are significant. It could lead to increased uncertainty in the global financial markets, as investors begin to question the safety of their gold reserves. It could also lead to increased demand for gold, as countries and investors seek to diversify their assets and reduce their reliance on foreign storage facilities.
In recent years, there has been a growing trend towards central banks and governments diversifying their gold reserves and reducing their reliance on foreign storage facilities. This trend has been driven by concerns over the safety and security of gold reserves, as well as the potential for currency devaluations and economic crises.
Germany’s decision to withdraw its gold reserves from the US is likely to be closely watched by investors and policymakers around the world. It could have significant implications for the global financial system and the gold market, and may lead to increased demand for gold as countries and investors seek to diversify their assets.
