4 minEconomy
Central Banks Reshuffle Gold Reserves as Geopolitical Risks Mount
The Dutch central bank has moved more than 78 tons of gold from New York to London, extending a broader trend of central banks rethinking where they store their reserves amid rising geopolitical uncertainty.
Central banks are increasingly moving their gold reserves between vaults in different countries, a shift that reflects growing concern about geopolitical risk and the reliability of overseas storage. The latest example came from the Dutch central bank, which announced it had transferred more than 78 tons of gold from New York and seven tons from Canada to London.
The De Nederlandsche Bank cited «increasing geopolitical unrest» and a need to improve its «crisis preparedness» as reasons for the move. Its governor, Olaf Sleijpen, said London’s role as the world’s largest bullion trading hub made gold held at the Bank of England more accessible. «We expect that we will never need to use them, but we do need to strengthen our resilience and preparedness,» he said.
The Netherlands’ decision follows France’s removal of all its gold from the New York Fed between July 2025 and January 2026. The New York Fed has long served as custodian for gold belonging to the U.S. government, foreign governments, other central banks and international organizations. Much of that gold arrived during and after World War II, when countries sought a safe location for their reserves. The stockpile peaked in the early 1970s but has gradually declined since the U.S. abandoned the gold standard, and it now stands at about half its peak.
Gold relocation is not a new phenomenon. Germany moved 930 tons from London to Frankfurt in 2000 and transferred 674 tons from New York and Paris to Frankfurt between 2013 and 2017, according to the World Gold Council. The Netherlands shifted 122.5 tons from New York to Amsterdam in 2014, and Austria repatriated 90 tons from London between 2015 and 2018. Outside Europe, Venezuela repatriated 160 tons in 2011 and 2012, while India has accelerated relocations since 2023.
Krishan Gopaul, a senior analyst at the World Gold Council, said gold movements have historically come in waves and began well before relocation became a geopolitical issue. But the current wave is more complex. «Heightened geopolitical uncertainty has increased attention on jurisdiction, access during a crisis and exposure to overseas financial infrastructure,» he wrote. «Yet recent operations by France and DNB show that the answer does not necessarily lie in domestic storage alone.»
Central banks are increasingly weighing three factors: custody risk, physical accessibility and market liquidity. In Germany and Italy, which hold the world’s second- and third-largest gold reserves, lawmakers have demanded that more gold be withdrawn from the U.S., citing President Donald Trump’s hostility toward Europe, including his threats to seize Greenland. Germany’s central bank has dismissed fears that its gold could be vulnerable in New York, arguing that the U.S. would harm itself if it undermined confidence in financial markets.
Gopaul noted that some central banks are expanding domestic storage while others are spreading holdings across more overseas locations, signaling that diversification of custody is a priority. He added that relocation does not imply central banks are preparing to sell gold. «The emerging picture is one in which security alone is no longer enough,» he said. «For some central banks, gold must also be accessible, tradable and distributed across locations that remain dependable under stress.»
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