Fort Knox - the fortified complex in Kentucky, where nearly half of the US government's gold reserves are stored - is synonymous with security. Being "like Fort Knox" means being extremely protected and well-guarded. However, the United States is apparently no longer seen as a safe place to store gold.
The decision by the Dutch Central Bank to move some 86 tonnes of gold from New York to London speaks to growing concerns among some governments about the storage of strategic assets in the US and the ability to easily access them in the event of a crisis.
„De Nederlandsche Bank“ (DNB) cited „geopolitical turmoil” as the reason for the decision. The financial institution said the transfer of gold to different jurisdictions would improve “crisis preparedness.” France also withdrew its remaining gold from the Federal Reserve in New York between July 2025 and January 2026, although the governor of the French central bank, François Villeroy de Gallo, claimed that the motives were not political.
In Germany and Italy, which have the second and third largest gold reserves in the world respectively, there are also already political calls for gold to be withdrawn from the United States – due to concerns about the unpredictability of the Trump administration and its growing hostility to the European Union (EU), including threats to annex part of Greenland.
Gold Rush
Sebastien Thiele, an analyst at “Oxford Economics“, told DW that direct asset seizures are “extremely low risk“ for European central banks. In times of geopolitical uncertainty, however, concerns about easy access to them are growing: “The more fundamental concern is that assets held in another country could become temporarily unavailable in an extreme scenario related to sanctions, legal or geopolitical events,” he explains.
Overall, according to Krishnan Gopaul of the World Gold Council, central banks around the world have been buying more gold since the global financial crisis in 2008 and are increasingly focusing on where and how they store it. As a result, gold prices have reached record levels.
A recent study by the World Gold Council found that central banks have accumulated an average of 1,000 tons of gold over the past four years – double the previous decade, when they averaged about 500 tons of gold.
As the 2008 global financial crisis was followed by the eurozone debt crisis, followed by a series of political crises, a pandemic, and prolonged geopolitical turmoil and conflict, gold has gained increasing importance as a safe-haven asset, Gopaul points out: “Over the past two decades, questions and concerns about the global financial system and the geopolitical environment have been constantly arising in one form or another“.
Why they made these decisions
The decisions of the Netherlands and France to withdraw their gold from the United States and return it to Europe highlight the new emphasis on where gold is stored and the need for it to be quickly and easily accessible in the event of another crisis. Central banks, governments and sovereign wealth funds hold physical gold in various locations, and moving it can be extremely complex, risky and expensive. And its location determines how easily it can be sold or exchanged for currencies or other assets if needed.
“Central banks are paying increasing attention not only to what assets they hold, but also to where they store their reserves, mainly to maximize the stability and flexibility of reserve assets“, says Sebastien Thiele.
Gopaul emphasizes the fact that the Dutch central bank moved its gold to London, not the Netherlands, because the United Kingdom is “one of the most liquid trading centers in the gold market“. The Bank of England is one of the world's largest holders and custodians of gold. It is believed to hold around 400,000 gold bars worth around $270 billion.
Is the US a safe place to be?
While moving gold to a city like London has its own appeal for European entities, it is clear that doubts about the reliability of the US in the Trump era and about the American financial system as a whole are the main factor in making such decisions.
Last week, the manager of Norway’s massive $2.3 trillion sovereign wealth fund said the fund would have to significantly reduce its holdings of U.S. government bonds. The move appeared to be driven by concerns about U.S. bond markets, with rising inflation and government debt pushing up borrowing costs and spooking investors.
Trump’s rhetoric
Sebastien Thiele said gold continues to be sensitive to the U.S. Federal Reserve’s decisions, and the general concern about U.S. financial markets means gold holders are looking for ways to shift their assets. Other reasons for countries and institutions to move their assets include Trump's rhetoric on Greenland, as well as ongoing covert or overt threats to the EU.
Still, the United States, and in particular the New York Federal Reserve in Manhattan, remain the key custodian of a significant portion of European gold - not least that from Germany. Although the Bundesbank returned around 300 tons of gold to Germany between 2013 and 2017, over 1,000 tons of German gold are still stored in the United States.
Author: Arthur Sullivan