Experts Urge Repatriation of German Gold Reserves Amid US Political Uncertainty

2026-01-24 economy

Frankfurt, Saturday, 24 January 2026.
Leading economists advise the Bundesbank to repatriate 1,236 tonnes of gold from New York, citing the Trump administration’s unpredictability as a significant sovereign risk to Germany’s €164 billion asset.

The Geopolitics of Bullion

The traditional assumption that the United States serves as the world’s safest financial haven is being challenged by prominent German economists who argue that the political climate in Washington has fundamentally changed. Emanuel Mönch, the former head of research at the Bundesbank, stated that given the current geopolitical situation, maintaining such vast reserves in New York appears “risky” [1][7]. This sentiment is echoed by Michael Jäger, head of the European Taxpayers Association, who explicitly warned that the unpredictability of President Donald Trump—specifically citing recent provocations regarding Greenland—could place German assets in jeopardy [1][4]. Jäger argues that the risk of the Bundesbank losing access to its reserves has increased, transforming the gold from a strategic asset into a potential geopolitical pawn [1][5]. The concern is not merely theoretical; experts fear that under extreme diplomatic strain, the U.S. administration could leverage these holdings, with some analysts suggesting the reserves could be treated as a “pledge” or hostage in trade disputes [2].

A €164 Billion Exposure

At the heart of this debate is a massive stockpile of wealth accumulated largely during the post-war economic boom. As of January 23, 2026, Germany possesses the second-largest gold reserves in the world, totaling 3,351.5 tonnes with a market value of approximately €456 billion [3]. While the Bundesbank stores just over half of this inventory—1,710 tonnes—domestically in Frankfurt, a significant portion remains across the Atlantic [2][3]. Specifically, 1,236 tonnes are held in the vaults of the Federal Reserve Bank in New York [2][3]. This single tranche of gold represents approximately 36.879% of Germany’s total gold reserves and is valued at roughly €164 billion [1][3][8]. Critics argue that leaving more than one-third of the nation’s gold under the jurisdiction of a foreign power, particularly one currently viewed by some experts as an unreliable partner, creates an unnecessary vulnerability [2][7].

Official Resistance to Repatriation

Despite the intensifying calls from economists and politicians for a strategic withdrawal, the institutions responsible for the gold remain steadfast. As recently as yesterday, January 23, 2026, the Bundesbank clarified that it has no plans to repatriate the reserves held in the United States, affirming its trust in the Federal Reserve’s security and independence [3][7]. This position aligns with the view of Bundesbank President Joachim Nagel, who stated in October 2025 that there was “no cause for concern” regarding the New York holdings [1]. The federal government supports this stance; Stefan Kornelius, spokesperson for the coalition government, confirmed that a withdrawal is not currently under consideration [1]. Clemens Fuest, president of the Ifo Institute, cautioned against reactionary measures, warning that a hasty repatriation could trigger unintended diplomatic consequences and “pour oil on the fire” of an already tense transatlantic relationship [1][2].

Precedents and Political Pressure

The debate has crossed party lines, with figures such as Marie-Agnes Strack-Zimmermann and Katharina Beck of the Greens arguing that gold must serve as an anchor of stability rather than a geopolitical vulnerability [1][7]. Proponents of repatriation point to historical and international precedents to validate their concerns. In the 1960s, French President Charles de Gaulle famously repatriated French gold from the U.S. to avoid political leverage [3]. More recently, Switzerland completed a strategic shift away from U.S. storage two decades ago; today, the Swiss National Bank stores 70% of its reserves domestically and the remainder in London and Canada, having exited New York entirely to diversify risk [7]. While the Bundesbank successfully relocated 300 tonnes of gold from New York to Frankfurt between 2013 and 2017 [2], the current push suggests that for many experts, the remaining exposure is still too high in an era of unpredictable U.S. foreign policy.

Sources

Geopolitical Risk Gold Reserves