Amid escalating geopolitical uncertainty and U.S. President Donald Trump’s continued attacks on the Federal Reserve, political and public pressure is mounting in Germany and Italy to bring back their gold reserves stored in New York, valued at more than $245 billion.
Both countries rank among the world’s top gold holders — second and third after the U.S. — with Germany holding 3,352 tons and Italy 2,452 tons.
Roughly a third of these reserves are stored at the Federal Reserve Bank of New York, a legacy of postwar global financial arrangements. But fears of U.S. unpredictability, central bank independence being compromised, and restricted access in times of crisis are driving a shift in sentiment.
Prominent voices such as Fabio De Masi (of Germany’s new left-wing populist party) and Peter Gauweiler (former conservative MP) are now advocating for gold to be moved back to European vaults. They argue that relying on the U.S. as a custodian is no longer viable in light of rising global instability and Trump’s rhetoric about intervening in monetary policy.
The Taxpayers’ Association of Europe (TAE) has formally requested that Germany and Italy’s finance ministries reassess their gold storage policies. TAE President Michael Jaeger emphasized that the Federal Reserve’s independence is no longer guaranteed, recommending repatriation to ensure national control.
While Germany’s central bank reaffirmed trust in the Federal Reserve as a secure partner, it admitted that storage locations are regularly reviewed according to its 2013 strategy emphasizing both security and liquidity.
The debate is also playing out in Italy, where ahead of Prime Minister Giorgia Meloni’s visit to Washington, economist Enrico Grazzini warned of the “grave risk” of storing 43% of Italy’s gold under a “potentially unreliable” U.S. administration.
A recent global survey of over 70 central banks shows growing interest in storing gold domestically, reflecting broader unease about access to foreign-held reserves during crises.
Despite concerns, some experts warn that a sudden move to bring gold home might signal diplomatic tension. German investor Bert Flossbach cautioned against making such decisions amid media scrutiny, as it could undermine U.S.-European relations.
