Germany Debates Bringing Home Its Gold as Trust in US Custody Wavers

By Staff, Agencies

Germany is facing renewed pressure to repatriate a large share of its gold reserves currently stored in the United States, amid growing unease over geopolitical tensions and concerns about the unpredictability of US politics under Donald Trump.

Of Germany’s gold reserves—the second largest in the world after the US—around €164bn worth, or 1,236 tons, is held in vaults at the Federal Reserve Bank of New York.

Emanuel Mönch, a prominent economist and former head of research at the Bundesbank, has argued that keeping such a large portion of Germany’s gold in the US is increasingly risky. He said that, in light of the current geopolitical climate, Germany should consider bringing the gold back to strengthen its strategic independence.

Although government spokesperson Stefan Kornelius has said that withdrawing the gold is not currently being considered, calls for repatriation are growing beyond the fringes of politics. Michael Jäger, head of the European Taxpayers Association and the Association of German Taxpayers, has also urged Berlin to act, warning that Trump’s unpredictability and confrontational foreign policy could threaten Germany’s access to its reserves.

The issue, once mainly championed by the far-right AfD, has entered mainstream debate. Katharina Beck, finance spokesperson for the Green party, has described the gold as a vital symbol of stability and trust that should not be exposed to geopolitical bargaining. Meanwhile, Ulrike Neyer, an economics professor and Christian Democrat supporter, has said the US can no longer be considered a fully reliable partner under the current administration.

Not all economists agree. Clemens Fuest, president of the Ifo Institute, has cautioned that repatriating the gold could escalate tensions and have unintended consequences. The Bundesbank itself maintains that there is no reason for concern, stressing that it regularly audits its gold holdings. Bundesbank president Joachim Nagel reiterated last year that Germany’s gold stored in the US remains secure.

Germany’s total gold reserves are valued at nearly €450bn. Slightly more than half are held in Frankfurt, 37% in New York, and 12% in London. Government figures from the Social Democrats have emphasized that this diversification ensures stability and flexibility, arguing that keeping gold in New York remains financially and strategically sensible given close transatlantic ties.

Still, as US rhetoric toward Europe hardens, the debate over whether Germany should “bring its gold home” is gaining momentum.