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Germany Considers Gold Reserves Amidst Rising Tensions with the U.S.
Calls to repatriate national gold reserves grow as gold prices reach record highs.
As the price of gold surpasses $5,000 per ounce for the first time, German economists and politicians are voicing concerns regarding the nation’s gold reserves stored in New York, valued at over €160 billion.
Germany holds the world's second-largest gold reserves, totaling 1,236 tons, primarily stored in the Federal Reserve Bank in New York.
Emmanuel Munsch, a senior economist and former head of research at the Bundesbank, has advocated for repatriating these assets, citing geopolitical tensions with the current U.S. administration as a reason for concern.
While the coalition government, led by Chancellor Friedrich Merz, has indicated that withdrawing the gold reserves is not currently on the agenda, Munsch's call reflects a broader desire for strategic independence among Europe’s largest economy.
Critics, such as Clemens Fuest, president of the Ifo Institute, argue that moving the gold could exacerbate existing strains between Germany and the U.S. Currently, approximately 37% of Germany’s total gold reserves, valued at around €450 billion, are kept in New York, with the remainder stored in Frankfurt and London.
The Bundesbank ensures regular audits of its foreign gold holdings, and both Bundesbank President Joachim Nagel and SPD spokesperson Fraka Heiligenstadt have assured that there is no cause for panic regarding these assets.
Germany holds the world's second-largest gold reserves, totaling 1,236 tons, primarily stored in the Federal Reserve Bank in New York.
Emmanuel Munsch, a senior economist and former head of research at the Bundesbank, has advocated for repatriating these assets, citing geopolitical tensions with the current U.S. administration as a reason for concern.
While the coalition government, led by Chancellor Friedrich Merz, has indicated that withdrawing the gold reserves is not currently on the agenda, Munsch's call reflects a broader desire for strategic independence among Europe’s largest economy.
Critics, such as Clemens Fuest, president of the Ifo Institute, argue that moving the gold could exacerbate existing strains between Germany and the U.S. Currently, approximately 37% of Germany’s total gold reserves, valued at around €450 billion, are kept in New York, with the remainder stored in Frankfurt and London.
The Bundesbank ensures regular audits of its foreign gold holdings, and both Bundesbank President Joachim Nagel and SPD spokesperson Fraka Heiligenstadt have assured that there is no cause for panic regarding these assets.
