Introduction: Why Germany’s Gold Reserves Matter
Among the current debates surrounding international reserves, no issue faces such intense scrutiny as the safeguarding of Germany’s vast gold reserves held abroad. The Bundesbank holds the second-largest reserves, following those of the United States. About a third of that fortune is deposited in Federal Reserve Bank of New York vaults.
Origins: Cold War, Bretton Woods, and Security
This storage structure dates back to the early Cold War and the Bretton Woods monetary order. West Germany’s export growth in the 1950s and 60s led to a surge in gold. The gold was typically kept in Western vaults, like in New York, because of fixed exchange controls of $35 per ounce.
Frankfurt is near Soviet-aligned territory, and having all the gold in Germany did not appear secure. As a result, many gold bars were deposited in allied vaults from London to New York to guard against the Eastern threat. US military bases and a solid alliance strengthened this union, ensuring the gold would maintain the Deutschmark and, later, the euro safely far from harm.
Postwar Growth and European Integration
Germany gained much more gold following World War II. The Bundesbank possessed nearly 129.7 million ounces of gold in 1968. It subsequently moved some of this gold into Europe-wide mechanisms, like the European Monetary Cooperation Fund during the 1970s and the European Central Bank upon introducing the euro currency. For example, within the EMU and earlier the European Monetary System, Germany pledged to put tens of millions of ounces into shared euro-area reserves, lowering its own to approximately 109 million ounces in 2014. West Germany also sold approximately 14 million ounces to the US Federal Reserve as of 1969, showing how international money rules were changing.
Modern Gold Policy: Repatriation and Diversification
Germany still has a considerable amount of gold even after relinquishing some of it: about 3,378 tonnes at the close of last year. The Bundesbank’s approach is officially to hold gold amounting to about half that in Germany. It finalized a scheduled repatriation in 2016 and brought back 300 tonnes from New York. As of 2016 year-end, the split was 47.9% in Frankfurt, 36.6% in New York, and 12.8% in London, with 2.7% still in Paris. That last Paris reserve was returned in 2017.
These shifts were asserted to help win confidence among citizens worried about reserves being inaccessible and making wise use of risk. Germany has been shifting its priority to keep more resources at home, but the relationship with its allies remains solid.
Political Controversy: Calls for Repatriation
To this day, nearly $113 billion of German gold is held in New York. This has recently been the subject of controversy within German politics. Far-right and populist parties have consistently called for all the gold to be returned to Germany, especially during poor U.S.-German relations. In 2025, after President Trump was back in office, politicians claimed that storing a large amount of gold in foreign countries wasn’t wise. They ordered Bundesbank officials to “inspect” the gold in New York regularly. The Taxpayers Federation said, “Trump wants to control the Fed, and that also means controlling the German gold reserves.” They further added that the gold “is our money” and “should be brought back.” German politicians have questioned whether the United States can still be considered a reliable partner because of the recent developments in international politics. Public broadcasters aired reports asking if Germany’s gold in New York would be safe. This shows that people are worried that storing gold abroad could be risky.
Official Response: Trust and Diversification
Yet the government and central bank officials have mostly rejected these fears. The Fed is a “reliable, trusted partner” and “there is no reason for distrust” regarding the safety of the New York vault, the Bundesbank says, a position echoed in MINING.com’s coverage. Bundesbank board member Carl-Ludwig Thiele has reported that he inspected the bars in 2012 and 2014 to verify their authenticity. Demanding the gold back is not a matter of law—the gold is still German property—but moving it all at once could be taken to signify a lack of trust in international institutions. Economists caution that sudden shifts in where gold is stored might spook markets. For that reason, the Bundesbank stresses diversification of where gold is stored, balancing gold stored in Germany with gold in New York and London. In either case, Germany already repatriates gold when needed. In 2015, the Bundesbank discreetly airlifted 930 tonnes from London since excessive rents made it expensive to hold gold abroad.
Why Germany Holds Gold: Stability and Symbolism
The existing political debate hasn’t changed why Germany has gold. It is a big, illiquid asset that helps to support confidence in the currency and add variety to the country’s reserves. Since the start of the euro, these gold holdings cannot directly control monetary policy. Still, in times of crisis, they could be sold or exchanged for foreign currency. In politics, gold is now a symbol of economic stability, a tradition dating back to the hyperinflation era in Weimar, Germany. Generally, despite the periodic disputes regarding German gold held abroad, actual intentions have not shifted significantly. The Bundesbank continues to depend on its allies’ vaults for some of its gold while gradually repatriating more. Current holdings represent a combination of past alliances, risk management conservatism, and national political pressures more than any radical change in Germany’s approach to its gold reserve management.
Key Takeaways
- Germany holds the world’s second-largest gold reserves, with about a third stored in New York.
- The storage strategy began during the Cold War for security and stability.
- Germany has gradually repatriated gold, but maintains a diversified storage approach across multiple countries.
- Political debates persist, especially during periods of strained US-German relations.
- Bundesbank officials, economists, and the government stress trust in the US Fed and the importance of storage diversification.
- Gold remains a symbol of economic stability and a strategic asset for Germany.
Inside the Gold Vault: How the New York Fed Safeguards US and Global Gold
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