Germany's Gold Reserves: Should They Stay in the US or Move to Europe?
Germany's gold reserves, totaling around 3350 tons and worth over 355 billion EUR at current gold prices, have historically been stored in the USA for swift USD access in crises. However, the future safety of these reserves under US governments remains uncertain.
The Bundesbank has no immediate plans to relocate its gold reserves, either within Germany or to other European locations. This decision is supported by Germany's significant immobile foreign assets, which make it reasonable to keep the gold reserve within the country or at least within the EU.
The current gold price stands at 3.873,73 $/oz (JFD Brokers). Despite the potential security risks of foreign assets, as seen in the potential confiscation of Russian assets, there are no convincing reasons why the gold should not be stored completely in Germany or at least in the EU.
Meanwhile, the EU is planning to grant a 140 billion EUR loan to Ukraine using frozen Russian central bank assets as collateral.
Given Germany's substantial gold reserves and the uncertainty surrounding the safety of foreign assets, it is worth reconsidering the storage location of the Bundesbank's gold. With the federal budget for 2025 around 500 billion EUR, ensuring the security and proximity of these valuable gold reserves should be a priority.
