Germany eyes relocation of massive gold reserves over US policy instability

Germany is weighing the possibility of relocating a substantial gold reserve from New York’s Federal Reserve vault due to growing concerns over the unpredictability of US policies under President Donald Trump.

For decades, Berlin has stored 1,200 tons of gold—making it the second-largest gold reserve in the world, behind only the United States—in an underground vault at the US Federal Reserve in Manhattan, Caliber.Az reports via foreign media.

However, senior members of the conservative Christian Democratic Union (CDU), set to lead Germany’s next government, are now discussing the potential move, as they worry that Washington may no longer be a reliable partner. “Of course, the question has arisen again,” said Marco Wanderwitz, a former German government minister and ex-CDU Bundestag member, in an interview with Bild. Wanderwitz has long advocated for a policy that would allow German officials to regularly inspect the gold reserves or consider withdrawing them entirely. He previously requested permission to personally inspect the reserves, but his request was rejected in 2012.

Germany’s vast gold reserves were accumulated after World War II, thanks to surging exports that led to large trade surpluses with other nations. These surpluses were converted into gold under the Bretton Woods system, which governed international monetary relations. Markus Ferber, a CDU member of the European Parliament, voiced similar concerns, backing the idea of regular inspections of Germany’s gold. "I demand regular checks of Germany’s gold reserves. Official representatives of the Bundesbank must personally count the bars and document their results,” Ferber said. 

These concerns come as the Trump administration imposes sweeping tariffs on the European Union, which may have strengthened the resolve of CDU figures to move the gold out of New York. The value of Germany’s Manhattan gold reserve is estimated at 113 billion euros (approximately 96 billion pounds), which accounts for 30 per cent of the country’s total gold reserves. Previously, the gold’s location in New York was considered strategic, offering access to dollar liquidity in case of a major economic downturn. 

However, as tensions with the Trump administration rise, some are questioning the wisdom of keeping such a valuable asset so far from home. Michael Jäger, a member of the Taxpayers Association of Europe, expressed support for bringing the gold back to Germany, stating, "It would be better to bring all German gold reserves to Frankfurt or at least to Europe as quickly as possible." The Bundesbank affirmed its trust in the Federal Reserve's security, saying it has "absolutely no doubt that in the Federal Reserve in New York we have a trustworthy, reliable partner in the storage of our gold reserves." 

The debate over Germany's gold is part of a broader effort to increase the country’s independence from the U.S. Following his victory in the February elections, CDU leader Friedrich Merz announced historic reforms that could unlock unlimited defense spending.

The reforms, which would exempt defense projects worth 1 per cent of Germany’s GDP from the country's "debt brake," are accompanied by a 500 billion euro infrastructure fund to address the nation's crumbling infrastructure. The overarching goal of these reforms is to strengthen Germany's military, the Bundeswehr, to ensure greater European security and reduce reliance on US weaponry and troops.

By Naila Huseynova