The German central bank may resume gold purchases for the first time in nearly three decades amid growing uncertainty in the global economy. Bundesbank President Joachim Nagel said there are strong reasons for central banks to continue diversifying their reserves through the precious metal. His statement raises the question of a possible change in the reserve policy of Germany, which holds the second largest official gold reserves in the world after the United States.
In a speech at an international conference on precious metals in the Italian city of Sorrento on October 5, Nagel pointed out that the increase in government debts and geopolitical tensions are changing the way central banks assess the security of their assets.
According to him, the increase in government bond yields in recent weeks is making them more attractive to investors again. At the same time, the growing indebtedness of governments is increasing concerns about credit risk, which increases the importance of gold as a means of diversification.
However, Nagel did not announce a specific decision by the Bundesbank to buy gold, nor the amount or timeframe for such operations. His statement is related to the prospects for the reserve policy of central banks in general.
Germany has over 3,300 tons of gold, which ranks it in second place in the world in terms of the size of official reserves. A significant part of the reserves is stored in Frankfurt, and the remaining quantities are located in vaults in New York and London.
In recent years, the question of the whereabouts of German gold has also acquired political significance. Against the backdrop of tensions in transatlantic relations, German economists have called for the return of part of the reserves stored in the United States. However, the Bundesbank traditionally emphasizes the importance of security, liquidity and the ability to quickly sell assets.
Meanwhile, gold is increasing its importance in the reserves of central banks around the world. According to data presented by Nagel, its share in global reserves has grown from around 14% in 2023 to almost 25% in 2025. The main reason is the significant increase in the price of the precious metal, and not just the increase in physical quantities.
A possible decision by the Bundesbank to increase its physical gold reserves would have important symbolic significance for international financial markets. For now, however, Joachim Nagel's statement indicates a change in the assessment of the role of gold, without constituting an officially announced purchase program.