Germany is contemplating bringing back its substantial gold reserves stored in a vault in New York. This move is associated with worries about the policies proposed by Donald Trump, according to the Telegraph.
For many years, Berlin has maintained 1,200 tons of its gold reserves—the second largest stash globally, following only the United States' holdings—kept securely beneath the earth in the Federal Reserve located in Manhattan.
Currently, high-ranking officials from the conservative Christian Democratic Union (CDU), slated to head Germany’s upcoming administration, are contemplating relocating their country’s gold reserves away from New York. This shift aims to address growing worries about whether Washington can still be considered a trustworthy ally.
“Naturally, the question has come up once more,” stated Marco Wanderwitz, the ex-German government minister, who resigned from his position in the Bundestag this year after representing the CDU.
Marcus Ferber, a member of the European Parliament representing the CDU, has also expressed his support for permitting German authorities to individually examine the gold bars.
“I am calling for routine inspections of Germany’s gold reserves. Officials from the Bundesbank should physically verify the bars and record their findings,” he stated.
Michael Yeager, who is part of the European Taxpayers Association, suggested that it would be preferable to have all German gold reserves moved to Frankfurt or somewhere within Europe without delay.
The origins of Germany's gold
After World War II, Germany grew prosperous as exports increased dramatically, resulting in considerable trade surpluses with other nations. Under the Bretton Woods system, these excess funds were transformed into gold reserves.
The estimated value of Germany's Manhattan reserves is €113 billion ($96 billion), which represents 30% of the country's total gold holdings.
Prior to the tariffs introduced by the Trump administration, keeping German gold in American vaults was seen as prudent because it offered easy access to dollars for liquidity during major financial crises.