- The situation in the USA is causing unrest in Berlin. Critics warn that Germany would not get its gold if Washington decided to block access.
- The FDP politician Strack‑Zimmermann is therefore calling for the gold to be returned from the USA and is demanding a clear risk assessment from the federal government.
Germany holds around 3,350 tons of gold second largest gold reserve in the world. Of these, 1,236 are stored in the US central bank branch in New York. During the Cold War, quick dollar convertibility and proximity to Wall Street were an advantage.
The Cold War may be gone now, but the gold is still there – power of habit. But that could now turn out to be colossal stupidity given the wandering resident of 1600 Pennsylvania Avenue.
The critics’ arguments: The Storage of gold reserves abroad is an unnecessary geopolitical risk and endangers Germany’s economic independence. The limited options for physically checking the stocks – audits are only possible in strictly controlled samples – also raise doubts about the actual control over the gold.
Stability at the price of dependency?
Die German Bundesbank However, points out the advantages of international storage. The New York Central Bank branch has been considered a reliable custodian for decades, and its proximity to global trading centers enables quick transactions in the event of a crisis. In addition, geographical spread is a safety factor. That’s why another 405 tons of Bundesbank gold are at the Bank of England in London.
But these arguments become less convincing as geopolitical tensions grow. The question of whether Germany could actually freely dispose of its reserves in an emergency remains unanswered.
The sovereignty question
The debate about gold has long since become more than a technical question of warehouse logistics. It touches on fundamental questions of sovereignty, transatlantic relations and strategic preparedness. In a world where economic power is increasingly used as political leverage, relying on a foreign depository seems to many to be an unnecessary risk.
If the federal government initiates a repatriation, the next crisis could arise between Berlin and Washington. By the way, the same question is currently also being asked for Italy, the Netherlands, Belgium, Sweden and Austria.
They also have more or less large parts of their gold reserves in the basement of the central bank in New York.
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