Germany and Italy, holders of the world’s second- and third-largest gold reserves, are encountering mounting domestic pressure to repatriate their bullion stored at the Federal Reserve Bank of New York. Together, the reserves amount to over $245 billion, equivalent to more than one-third of their holdings abroad .

Germany holds approximately 3,352 tonnes of gold, of which 1,200 tonnes—valued at around €113 billion—remain deposited in New York. Italy holds approximately 2,452 tonnes, with a similar proportion stored in the United States .

Calls for repatriation have gained momentum amid recent remarks by the US President questioning the independence of the Federal Reserve, and amid broader geopolitical uncertainty. Germany’s Taxpayers Federation and senior politicians within the CDU have urged the Bundesbank and finance ministry to retrieve the gold from US custody .

In response, the Bundesbank has reaffirmed its confidence in the Federal Reserve, citing a longstanding custodial relationship rooted in Cold War-era safeguards. The institution noted that it views the Fed as a “trustworthy, reliable partner,” while underscoring that repatriation efforts in 2013–20 already returned over 600 tonnes of gold to Frankfurt .

Earlier repatriation efforts included the transport of approximately 300 tonnes from New York and 374 tonnes from Banque de France to Germany between 2013 and 2020, at an estimated logistical cost of €7 million .

The surge in repatriation demands reflects broader international trends, with nations such as the Netherlands, Hungary, and India recalling gold reserves from overseas vaults in recent years .

Italy, though subject to less publicised debate, holds around one-third of its reserves at the New York Fed. Similar calls for repatriation have emerged in Italian political circles as transatlantic relations come under strain .

Analysts indicate that repatriation would involve significant operational difficulties, including secure transport and audit procedures. Some German lawmakers have proposed physical inspections of the New York holdings to verify compliance .

The unfolding debate signals shifting attitudes toward the custodianship of national reserves and highlights the increasing role of geopolitical considerations—particularly relating to trust in US financial institutions—in shaping international finance policy.