Under the threat of geopolitical turbulence and unpredictable politics in the US, Germany and Italy are increasingly present for repatriation of gold reserves at Federal Reserve Bank in New York. Their value exceeds $ 245 billion.
Calls for returning gold at home come against the background of increasing global tensions and increasingly virulent attacks of US President Donald Trump to the independence of the US Reserve. Politicians from both ends of the political spectrum – from left -wing populists to classic conservatives – demand the reassessment of trust in American partners as storage of strategic assets, writes Financial Times.
Germany and Italy have the second and third largest volume of gold worldwide, after the United States – 3,352, respectively 2,452 tons, according to the data of the World Golden Council. A considerable proportion of these reserves is kept in Manhattan, in the Federal Reserve, for historical but also logistical reasons, New York being a global knot with precious metals.
But the current political realities increase the vulnerability of such arrangements.
Fabio de Masi, former MEP on the part of the German radical left, currently a member of the BSW populist formation, claims that “there are solid arguments for relocating gold reserves in Europe or Germany, especially in agitated times.” Concerns are also fueled by Trump's recent statements, which suggested that he could “force the hand” of the federal reserve if the interest was not reduced.
In Berlin, the idea of repatriation of gold returns to the forefront. Peter Gauweiler, a former deputy from the CSU, points out that “Bundesbank does not have to make a discount when it comes to the safety of the gold reserves.” He raises the essential question: “Is gold more safe abroad than a decade ago?” – And the answer, he says, it's obvious.
“We seriously worry Trump's mixture in the independence of the federal reserve”
Concerns are not just theoretical. The taxpayers' Association of Europe sent official requests to governments in Rome and Berlin, asking for a review of FED addiction. “We seriously worry Trump's mixture in the independence of the federal reserve,“Says Michael Jäger, president of the organization.” Our recommendation is clear: gold must return home, so that the European central banks have full control over it. “
In Italy, the political context is just as tense. Prior to Prime Minister Giorgia Meloni's official visit to Washington, editorialist Enrico Grazzini wrote in Il Fatto Quotidiano that “leaving 43% of Italy's reserves in the hands of an unpredictable Trump administration is a major risk for national interest.”
The tendency to re -evaluate the gold storage policies is not isolated. A recent poll among over 70 central banks has indicated an increase in interest in keeping gold inside their own borders – a clear signal that trust in international arrangements is eroded.
Historically, storage in the US was considered a measure of protection against geopolitical risks during the Cold War. However, France gave up this practice – Charles de Gaulle repatriated gold in Paris in the 1960s, against the background of losing confidence in the Bretton Woods system.
In Germany, a public campaign started in 2010 led, in 2013, to the Bundesbank decision to bring back some of the gold-674 tons of New York and Paris-in a discreet but expensive operation, of 7 million euros. Currently, 37% of German gold is still in New York.
Peter Boehringer, the initiator of the campaign and current AFD parliamentarian, emphasizes that “gold is the supreme spare asset for a central bank and must be kept without risks from third parties. If necessary, it does not matter who owns legal gold, but also who controls it physically.”
In fact, even the party of Meloni – the brothers of Italy – supported the repatriation of gold in 2019, when it was in opposition. From taking over the power, however, the prime minister avoided the subject, relying on a functional relationship with the Trump administration and avoiding a new commercial escalation.
Unwanted effects
But not all agree with the idea of repatriation. German investor Bert Flossbach warns that such a “tamm” movement would transmit a dangerous signal regarding the deterioration of relations with Washington.
Bundesbank remains cautious. In a response to the Financial Times, the institution specifies that “re-evaluating” storage locations according to safety and liquidity criteria-so that the gold can be quickly traded, if necessary. “Fed in New York remains a reliable partner,” says the German central bank.
The representatives of the Bank of Italy, the Meloni Government and the Berlin Ministry of Finance refused to comment.
