European Central Banks Want Their Gold Back

European central banks are relocating gold reserves held in foreign vaults as geopolitical tensions and concerns over the global financial system prompt governments to reassess how they safeguard strategic assets.

The Netherlands, France and Germany have taken steps to increase the amount of gold held closer to home or within Europe, reflecting growing concerns about the security, accessibility and liquidity of foreign reserves amid deteriorating international relations.

De Nederlandsche Bank (DNB) transferred about 86 tonnes of gold from the United States and Canada to London in early September, citing the need to strengthen its preparedness for potential crises.

“In view of increasing geopolitical unrest, DNB is strengthening its crisis preparedness. Improving the liquidity and tradability of the Dutch gold reserves is part of these preparations,” DNB said in a statement.

The Netherlands holds 612.4 tonnes of gold valued at approximately 72.2 billion euros ($82.2 billion). The central bank said relocating part of its reserves had created a more balanced geographical distribution.

France has also completed the repatriation of 129 tonnes of gold from New York, bringing its entire 2,437-tonne reserve, valued at 300.8 billion euros ($342.6 billion), into vaults in Paris.

Germany began a similar process about a decade ago, transferring 300 tonnes of gold from New York as part of a programme to increase the amount held in its domestic vaults.

The moves come as central banks seek to reduce exposure to geopolitical risks and preserve access to assets that can be mobilised during financial crises.

Following Russia’s invasion of Ukraine in 2022, the United States and its allies froze about $300 billion in Russian central bank reserves, highlighting how foreign-held financial assets can become vulnerable to geopolitical disputes and sanctions.

“As trust in the rules-based order erodes, relations to the U.S. are deteriorating and the global financial system is fragmenting,” said Frédéric Schneider, an economist, policy analyst and nonresident senior fellow at the Middle East Council on Global Affairs in Doha, Qatar.

The relocation of bullion is part of a broader shift in central bank reserve management, with governments increasingly weighing sovereignty, liquidity and access to major financial markets when deciding where to hold their assets.

Central banks have continued to accumulate gold since 2022, purchasing an average of about 1,000 tonnes annually, compared with approximately 500 tonnes a year over the preceding decade, according to the World Gold Council.

Their combined holdings stand at about 40,000 tonnes, accounting for roughly a quarter of global reserves.

Rising gold prices have also increased the strategic importance of bullion. Goldman Sachs forecast that prices would reach $4,900 per troy ounce by the end of 2026, compared with $4,600 as of August 25.

The movement of gold between financial centres does not necessarily indicate a loss of confidence in the United States, however, with liquidity and access during emergencies also influencing central banks’ decisions.

Gold relocation might seem “alarming,” said Daniel Coatsworth, head of markets at UK investment firm AJ Bell, but it is largely motivated by liquidity and reserve management concerns rather than waning confidence in the U.S.

“Gold reserves are meant to be tucked away and left alone, but central banks need to ensure they can buy and sell gold quickly should a crisis happen.”

London has emerged as a preferred destination for some central banks because of its position as one of the world’s largest gold trading centres.

The Bank of England holds about 400,000 gold bars valued at more than 200 billion pounds ($265 billion) in its vaults, making it a major custodian of bullion for central banks and other financial institutions.

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