As of April 5, 2025, there have been reports suggesting that Germany is contemplating the withdrawal of approximately 1,200 tons of gold from a U.S. Federal Reserve vault in New York, potentially as a response to new tariffs imposed by the U.S. This gold, valued at around €113 billion (approximately $124 billion depending on exchange rates and gold prices), represents about 37% of Germany’s total gold reserves, which stand at roughly 3,352 tons—the second-largest in the world after the United States.
Historically, Germany has stored a significant portion of its gold abroad, including in New York, London, and previously Paris, a practice that began after World War II during the Bretton Woods system when trade surpluses were converted into gold. The decision to keep gold in the U.S. was partly strategic, providing access to dollar liquidity in times of crisis, and was reinforced during the Cold War due to fears of Soviet invasion. However, recent discussions, particularly from senior figures in the Christian Democratic Union (CDU)—expected to lead Germany’s next government—indicate growing concerns about the reliability of the U.S. as a partner, especially amid escalating trade tensions under the Trump administration.
The Bundesbank, Germany’s central bank, has previously repatriated gold, completing the transfer of 300 tons from New York and 374 tons from Paris by 2017, ahead of a 2020 target. Currently, about half of Germany’s reserves are held in Frankfurt, 13% in London, and the remaining 1,236 tons in New York. The idea of withdrawing more gold has been fueled by calls from politicians like Marco Wanderwitz and Markus Ferber, who have long advocated for regular inspections or full repatriation, citing distrust in U.S. stewardship—especially after past requests to inspect the gold were denied, such as in 2012.
The Bundesbank, however, has maintained confidence in the Federal Reserve, stating it has “absolutely no doubt” about the security of its gold in New York. Despite this, the new tariffs and broader geopolitical shifts may be prompting a reevaluation. If Germany proceeds, it would mark a significant shift in its financial strategy, potentially signaling a broader trend among nations rethinking their reliance on U.S.-based reserves. That said, logistical challenges and the symbolic weight of such a move mean no final decision has been confirmed as of now.
