Memorandum
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- Derek Weston via Fortune | FORTUNE
- Date
- Filed
- Economy·4 min to read
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Central Banks Rethink Gold Storage as Trust in U.S. Custody Wanes
ReCentral Banks Rethink Gold Storage as Trust in U.S. Custody Wanes
The Dutch central bank's move of 85 tons of gold from North America to London is the latest sign that central banks are diversifying where they store reserves, driven by geopolitical risk and a focus on access and liquidity rather than safety alone.
Central banks are quietly redrawing the map of global gold reserves, shifting bullion away from U.S. vaults and toward locations they see as more accessible in a crisis. The latest move came from the Dutch central bank, De Nederlandsche Bank, which transferred more than 78 tons of gold from New York and seven tons from Canada to London, citing «increasing geopolitical unrest» and a need to improve «crisis preparedness.»
The shift is part of a broader trend that has accelerated in recent years. France removed all of its gold from the New York Fed between July 2025 and January 2026. The New York Fed has long stored gold for foreign governments and central banks, with much of it arriving during and after World War II. That stockpile peaked in the early 1970s and has since fallen by about half, a decline that continues as custodianship in the U.S. shrinks.
Dutch central bank governor Olaf Sleijpen said London's role as the world's largest trading hub for bullion made the Bank of England a more practical location. «We expect that we will never need to use them, but we do need to strengthen our resilience and preparedness,» he said. The comment reflects a shift in how central banks think about reserves: security alone is no longer the only consideration.
Gold relocation has come in waves for decades. Germany moved 930 tons from London to Frankfurt in 2000, then shifted 674 tons from New York and Paris to Frankfurt between 2013 and 2017. The Netherlands moved 122.5 tons from New York to Amsterdam in 2014, and Austria repatriated 90 tons from London between 2015 and 2018. Outside Europe, Venezuela brought home 160 tons in 2011 and 2012, while India has accelerated relocations since 2023.
What is different now is the complexity of the decisions. Krishan Gopaul, a senior analyst at the World Gold Council, said heightened geopolitical uncertainty has focused attention on jurisdiction, access during a crisis, and exposure to overseas financial infrastructure. «Central banks are increasingly optimizing across three considerations: custody risk, physical accessibility and market liquidity,» he wrote. Recent operations by France and the Dutch central bank show that the answer is not simply storing gold at home, he added.
Political pressure is also playing a role. Lawmakers in Germany and Italy, which hold the world's second- and third-largest gold reserves, have demanded that more of their gold be removed from the U.S., citing President Donald Trump's hostility toward Europe, including threats to seize Greenland. Germany's central bank has dismissed fears that its gold is vulnerable in New York, arguing that the U.S. would harm itself if it threatened confidence in financial markets.
Gopaul noted that some central banks are increasing domestic storage while others are spreading reserves across more overseas locations, signaling that diversification of custody is a priority. Relocation does not mean central banks are preparing to sell gold, he added. «But the emerging picture is one in which security alone is no longer enough,» he said. «For some central banks, gold must also be accessible, tradable and distributed across locations that remain dependable under stress.»
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