Germany wants its gold reserves back from the US

Concerns are growing in Germany regarding the security of gold reserves held in the US. Political figures and organizations are calling for the gold to be brought back to the country.

Don't leave your news choices to an algorithm - decide for yourself what you read. Add 12punto to your preferred sources!

Germany wants its gold reserves back from the US

Discussions regarding the security of gold reserves in Germany have reignited during the Donald Trump era in the US. Unions and politicians affiliated with the Christian Democratic Union argue that these reserves should be brought back to Germany.

CSU Member of the European Parliament Markus Ferber expressed his concerns on the matter, stating, "One must not forget that Trump is unpredictable and could develop creative approaches toward foreign gold reserves. The US is no longer as reliable a partner as it once was."

Michael Jaeger, President of the European Taxpayers Association, also launched a similar campaign, calling for the return of "our gold to our homeland."

Approximately half of Germany's total gold reserves of 3352 tons are located in Frankfurt, while 37 percent are held in the Federal Reserve vaults in New York. The remaining 405 tons are stored at the Bank of England. This situation dates back to post-World War II economic conditions and is explained by Germany's decision to keep its reserves, which were formed following trade surpluses, abroad.

DOUBTS HAVE INCREASED

Donald Trump's criticisms of Fed Chair Jerome Powell and the debates surrounding the independence of the Fed have increased doubts regarding the security of Germany's gold reserves. However, a Bundesbank spokesperson stated that the New York Fed remains a reliable depository, saying, "The fundamental criteria for the weighting of gold reserves are security and marketability."

Bundesbank President Joachim Nagel sent a message of confidence, stating, "I am following this debate closely, but it does not worry me. I have full confidence in our colleagues at the New York Fed."

Recently, investors looking to protect themselves from political risks in the US have begun directing their gold to safer havens such as Singapore. This shift is being evaluated as an indicator of investors' search for safe havens.

News Source: 12punto