In a striking development reflecting growing concern within European economic circles, the German Taxpayers' Association has renewed its demands for the swift repatriation of Germany's gold reserves stored in the United States. These calls are driven by fears of unpredictable shifts in US policy under President Donald Trump and the potential global economic repercussions.
A crisis of confidence and fears over US debt
Michael Jäger, vice president of the German Taxpayers' Association, told the Bavarian Media Group that it is time to end the practice of storing German gold abroad, specifically in the United States. He explained that trust in the American ally has been significantly damaged by President Trump's political and economic policies, noting that the United States faces an enormous national debt burden requiring annual interest payments of up to one trillion dollars.
Jaeger believes that the US administration may seek to generate additional revenue “at any cost” to address this deficit, including imposing high tariffs, which raises concerns about the fate of foreign assets stored there, arguing that gold should be under direct German sovereignty to ensure its complete security.
The German central bank's stance: Gold is safe
On the other hand, the German central bank (Bundesbank) takes a completely different stance. Its president, Joachim Nagel, told the Frankfurter Allgemeine Zeitung that there is no technical or security justification for moving the gold at present, stating, "I have no doubt whatsoever that our gold is safely stored at the Federal Reserve Bank of New York." The central bank believes that holding a portion of its gold reserves in global financial centers like New York and London is essential to ensure the ability to quickly convert the gold into foreign currency in extreme emergencies.
Facts and figures about German gold
Germany possesses the world's second-largest gold reserves after the United States, with these reserves amounting to approximately 3,352 tons by the end of 2024. According to official data:
- More than half of this amount (over 50%) is stored in the vaults of the German Central Bank in Frankfurt.
- There are approximately 1,236 tons (equivalent to 37%) in the vaults of the Federal Reserve Bank of New York.
- The remaining amounts are distributed in the Bank of England in London.
Historical background and strategic context
The roots of Germany's gold reserves abroad can be traced back to the Cold War era, when West Germany transferred most of its reserves to the West (the United States, Britain, and France) for fear of a potential Soviet invasion and seizure of national wealth. With the fall of the Berlin Wall and the end of the Cold War, calls began to grow for the return of this gold.
Germany has already responded to such pressures before, with the German central bank launching a massive program between 2013 and 2017 that successfully repatriated hundreds of tons of gold from Paris and New York to Frankfurt. However, current calls for gold repatriation are more politically and economically charged, given the current geopolitical shifts and Trump's "America First" slogan, making the issue of national asset sovereignty a top priority for German taxpayers.
