Growing Calls for Germany and Italy to Pull $245 Billion Out of US
Germany, Italy Face Pressure to Repatriate $245 Billion in U.S.-Held Gold
Recall back in April of this year when GoldFix raised reader awareness by breaking the news that Germany had a nascent but growing movement to repatriate its Gold from the US. Of chief importance was the longstanding assumption that Germany’s gold reserves were safe in New York is no longer taken for granted….
Germany, Italy Face Pressure to Repatriate $245 Billion in U.S.-Held Gold
FRANKFURT/ROME — Recall back in April of this year when GoldFix raised reader awareness by breaking the news that Germany had a nascent but growing movement to repatriate its Gold from the US. Of chief importance was the longstanding assumption that Germany’s gold reserves were safe in New York is no longer taken for granted. Political shifts in Washington, public calls for increased transparency, and broader concerns about U.S. reserve integrity are prompting parts of Berlin’s political establishment to reassess the wisdom of maintaining large-scale gold holdings abroad.
We actually said the following on April 1st breaking this news in the US:
Turns out this is now a growing risk to global bullion markets spreading both internally in Germany and externally into Italy
Yesterday, the Financial Times reported that Germany and Italy are under mounting pressure to move their gold reserves—currently held in New York—back to Europe. Concerns stem from geopolitical instability and repeated political interference by former U.S. President Donald Trump in Federal Reserve policy.
Gold: Germany’s Trust of US as Custodian Is Under Review
Prediction. When the US is done repatriating its gold... Germany will begin calling the rest of its own back from the US and UK. This started with Germany in 2013, it will end with Germany - VBL’s Ghost on X.com
Germany and Italy hold the second- and third-largest official gold reserves in the world (3,352 and 2,452 tonnes respectively), and each stores over a third of that in the vaults of the New York Federal Reserve. The total combined market value exceeds $245 billion, according to FT estimates.
Central Bank Gold Reserves…
Critics across Europe are questioning the prudence of outsourcing custody to the U.S., particularly under the specter of political volatility. Fabio De Masi of Germany’s BSW party told the Financial Times that relocating gold to Europe during “turbulent times” is a logical risk-management step. Former conservative MP Peter Gauweiler echoed this, noting the Bundesbank must re-evaluate the security and stability of foreign storage.
A letter from the Taxpayers Association of Europe to both countries’ finance ministries raised alarms about Trump’s sway over Fed independence. “Our recommendation is to bring the gold home,” said TAE president Michael Jäger.
Italy’s Giorgia Meloni, who once vowed to repatriate Italy’s bullion, has since taken a more muted stance as Prime Minister. Her party now calls the gold’s location “of relative importance.”
“Gold is an asset of last resort for central banks. It needs to be stored without any third-party risk.” — Peter Boehringer, AfD MP
Repatriation has historical precedent. Germany moved 674 tonnes from New York and Paris between 2013 and 2017 following a grassroots campaign. France brought most of its overseas gold back in the 1960s.
German Gold by Storage Location…
Still, officials from both countries remain cautious. The Bundesbank reaffirmed its trust in the New York Fed, citing liquidity and global trade access. The Bank of Italy, Berlin’s finance ministry, and Meloni’s office declined to comment.
Some info via: https://www.ft.com/content/e39390cc-ea02-4197-843a-1e4c242422cc
Any ideas of how zeGermany was able to get all of that gold in the first place?
We know what the US did to Russia regarding reserves.
Trump has complained more than once about NATO members not paying their fair share.
Would you be surprised if Trump tried to take the gold to make up for the shortfall?
Leaving the gold in the US is asking for it IMO.