Germany is facing calls to repatriate its gold reserves, worth billions of euros, from vaults in the United States. This push is driven by shifting transatlantic relations and the unpredictability of Donald Trump.
Germany holds the world’s second-largest national gold reserves after the U.S., with about €164 billion worth—1,236 tonnes—stored in New York.
Emanuel Mönch, a leading economist and former head of research at Germany’s central bank, the Bundesbank, has urged that the gold be brought home. He argues it is too “risky” to keep it in the U.S. under the current administration. “Given the current geopolitical situation, it seems risky to store so much gold in the U.S.,” he told the financial newspaper Handelsblatt. “In the interest of greater strategic independence from the U.S., the Bundesbank would therefore be well advised to consider repatriating the gold.”
Stefan Kornelius, a spokesperson for Chancellor Friedrich Merz’s coalition government, recently stated that withdrawing the gold reserves is not currently under consideration.
However, Mönch is the latest among several economists and financial experts to argue that such a move aligns with the greater strategic independence Europe’s largest economy has been seeking from the U.S. in recent months.
Michael Jäger, head of the European Taxpayers Association and the Association of German Taxpayers, has also called for action. He contends that the U.S.’s expressed interest in acquiring Greenland should serve as a warning. “Trump is unpredictable and he does everything to generate revenue. That’s why our gold is no longer safe in the Fed’s vaults,” Jäger told the Rheinische Post. “What happens if the Greenland provocation continues? … The risk is increasing that the German Bundesbank will no longer be able to access its gold. Therefore, it should repatriate its reserves.”
Jäger said he wrote to the Bundesbank and the finance ministry last year, urging them to “bring our gold home.”
Until recently, the gold issue was championed mainly by the far-right Alternative für Deutschland (AfD), which has long called for its return on patriotic grounds. But the topic is increasingly entering mainstream discourse.
Katharina Beck, finance spokesperson for the opposition Greens in the Bundestag, has also advocated for relocating the gold bars, describing them as an “important anchor of stability and trust” that “must not become pawns in geopolitical disputes.”
Conversely, Clemens Fuest, president of the Institute for Economic Research (Ifo) and one of Germany’s most prominent economists, has warned against repatriation. He told the Rheinische Post that such a move could have unintended consequences and would “only pour oil on the fire of the current situation.”
Germany’s total gold reserves are worth nearly €450 billion. Just over half are held at the Bundesbank in Frankfurt am Main, 37% in the vaults of the U.S. Federal Reserve in New York, and 12% at the Bank of England in London, the global center of gold trading. The Bundesbank states it regularly audits its gold holdings abroad.
Speaking last October at the International Monetary Fund’s autumn meetings in Washington D.C., Bundesbank President Joachim Nagel assured attendees there was “no cause for concern” over the German gold held at the U.S. Federal Reserve.
Frauke Heiligenstadt, the parliamentary group spokesperson on financial policy for the Social Democrats, junior partners in the government, acknowledged concerns about the gold reserves but said there was no need for panic. “Germany’s gold reserves are well diversified,” she noted, pointing out that half are already located in Germany.Frankfurt maintains that “our ability to act is guaranteed.” They added that holding gold in New York made sense because “Germany, Europe, and the US are closely aligned in financial policy.”
However, as Trump’s rhetoric toward Western partners has grown more confrontational, a growing number of Christian Democrats, including Friedrich Merz’s allies, have been advocating for the gold’s return.
“The US is no longer a reliable partner due to the Trump administration,” Ulrike Neyer, an economics professor at the University of Düsseldorf, told the Rheinische Post.
Frequently Asked Questions
FAQs German Gold Reserves Recommendations for Repatriation
BeginnerLevel Questions
1 What are gold reserves and why does Germany have them
Gold reserves are physical gold bars held by a countrys central bank as a store of value and a financial safety net They back the countrys currency provide stability during crises and are a key part of national wealth
2 Where are Germanys gold reserves stored
For decades a significant portion was stored in foreign central bank vaults primarily with the Federal Reserve Bank of New York in the United States as well as with the Bank of England and the Banque de France
3 What does repatriating gold mean
Repatriation means physically moving Germanys gold bars back from foreign vaults to vaults within Germany itself under the direct control of the Bundesbank
4 Why did some German economists and politicians want the gold brought back
The main reasons were concerns about sovereignty and trust They wanted to ensure Germany had immediate unquestioned access to its own assets especially after the 2008 financial crisis There was also public pressure for greater transparency and a desire to audit the gold firsthand
Advanced Practical Questions
5 Has Germany already moved its gold back
Yes In 2013 the Bundesbank announced a plan to repatriate half of its foreignheld gold by 2020 This goal was completed successfully A large portion of the gold from New York and Paris has been transferred to Frankfurt
6 What were the arguments against repatriation
Critics argued it was costly and logistically risky to transport massive amounts of gold They also noted that storing gold with trusted allies fostered international monetary cooperation and was safe Some saw it as an unnecessary political gesture that could signal distrust
7 What are the benefits of having gold at home
Enhanced Sovereignty Full physical control over a critical national asset
Public Confidence Increases trust in the central bank and the financial system
Crisis Preparedness Guaranteed immediate access in an extreme geopolitical or financial emergency
Simplified Audits Allows for easier verification and transparency
