Key facts
- The Dutch central bank (DNB) has moved approximately 86 metric tons of gold reserves out of the United States and Canada.
- The relocation was largely to London, described as the world's largest physical-bullion trading hub.
- DNB cited 'increasing geopolitical unrest' and the need to strengthen crisis readiness as reasons for the move.
- The bank stated the overhaul would improve the tradeability of its gold reserves.
- France previously sold its remaining 129 metric tons of US gold holdings earlier in the year.
The Dutch central bank, De Nederlandsche Bank (DNB), has relocated approximately 86 metric tons of its gold reserves from the United States and Canada, primarily to London. This move, which occurred between March and August, represents a significant reduction in its North American holdings and is framed as a measure to enhance crisis readiness amid increasing geopolitical unrest.
DNB stated that storing gold in London, the world's largest physical-bullion trading center, improves its tradeability and accessibility during a crisis. While about 27 metric tons were physically transported, much of the remaining North American holdings were sold and repurchased in London, a process that avoided melting down the bars. The share of Dutch gold held in New York has fallen from 31.3% to 18.5%, while London's share has increased from 18.1% to 32.1%.
This action follows France's decision earlier in the year to sell its 129 metric tons of gold stored in the U.S. and move it to Paris. The Dutch central bank has previously expressed concerns about reliance on the U.S. under President Trump's administration, though it has stated it is not worried about confiscation. The move also occurs against a backdrop of German politicians publicly questioning the prudence of keeping their country's substantial gold reserves in New York due to perceived unpredictability in U.S. policies.
Germany holds the largest exposure among the countries in this debate, with about 37% of its 3,350 metric tons of gold stored in New York. Concerns have been voiced by German lawmakers and taxpayer advocates about the potential risks of holding foreign reserves in the U.S. under unpredictable leadership.