Germany wants its gold back from the U.S.

With Trump back in office, Germany’s Taxpayers Federation has voiced its renewed unease over the safety of the country’s gold held at the Federal Reserve Bank of New York. 

Germany’s 3,352 tonnes of gold is the topic of headlines as lawmakers call for their gold to be returned to German soil. Lawmakers, economic watchdogs, and public broadcasters have come together to express their renewed concern regarding the safety of the country’s gold stored at the Federal Reserve Bank of New York.

Germany wants its gold back

Germany has 1,120 tonnes of gold, representing about one-third of its 3,352-tonne national reserve currently in U.S. custody.

The U.S.-Germany arrangement started during the Cold War, as storing gold far from Soviet threats served strategic interests. But today, Trump’s recent combative stance towards international alliances, his attacks on the independence of the Federal Reserve, and the overall unpredictability of his policies are leading to calls for Germany to reassess where its gold should be held.

This week, the German Taxpayers Federation, Bund der Steuerzahler, issued formal letters to both the Bundesbank and the Finance Ministry, urging for the immediate return of the gold stored in New York.

“Trump wants to control the Fed, which would also mean controlling the German gold reserves in the U.S.,” Michael Jaeger, the organization’s vice president, said. “It’s our money, it should be brought back.”

Germany’s far-right Alternative for Germany (AfD) party and gold enthusiasts suspicious of U.S. intentions were the usual culprits in demanding that the country’s gold be returned.

Peter Boehringer, who is both an AfD lawmaker and a long-time advocate for returning the gold, also weighed in. “When I started asking about the gold, I was dismissed as a conspiracy theorist,” he said. “Today, after Trump, my concerns are shared widely.”

Markus Ferber, a senior member of the ruling Christian Democratic Union (CDU) and an influential voice in the European Parliament, also warned against keeping the gold in U.S. custody.

“The United States is no longer the reliable partner it used to be. Trump is erratic, and one cannot rule out that someday he will come up with creative ideas on how to treat foreign gold reserves.”

Bundesbank backs the U.S. as a reliable partner

Despite the rising concerns, the Bundesbank has remained publicly committed to its current storage arrangement. Responding to questions from Reuters, Germany’s central bank said that it considered the New York Fed “a trustworthy, reliable partner for the storage of our gold holdings.”

The German Finance Ministry, when asked for comment, agreed with the Bundesbank and also emphasized the central bank’s operational independence. The European Central Bank (ECB) recently issued a statement reaffirming its trust in the Fed as a partner.

Germany’s decision to store gold abroad dates back to the post-WWII era and its subsequent economic boom. The 1950s and 60s export surpluses enabled the country to amass one of the world’s largest gold reserves. With the threat of potential Soviet aggression, storing gold in New York was the country’s safest bet.

In partial response to pressure from German lawmakers, the Bundesbank previously returned 300 tonnes of gold from New York to Germany between 2014 and 2017, citing a desire to “build confidence at home.”

Today, Germany’s gold is spread across three locations: the Bundesbank headquarters in Frankfurt, the Bank of England in London, and the Federal Reserve in New York. Ferber argues that the current geopolitical tensions, including Russia’s invasion of Ukraine and the trade tensions with China, may call for further diversification.

“For gold reserves, diversification is key. Having all eggs in too few baskets is never advisable,” he said, stopping short of naming alternative storage sites.

Fritz Güntzler, another CDU official and finance spokesperson in the Bundestag, emphasized ongoing accountability rather than relocation. “I have no reason to mistrust the Fed, but the Bundesbank should continue regularly inspecting the stocks,” he said.

The Bundesbank says it already conducts regular sample inspections, having verified about 13% of the New York holdings over the years. But critics argue that even such checks may not be enough if political circumstances change dramatically under Trump’s administration.

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