In times of crisis, many people invest in gold. Central banks and countries also own gold reserves. Germany, for example, has the second largest gold reserves in the world, at 3,550 tons - according to data from the Federal Reserve at the end of 2024.
1,710 tons are stored in Frankfurt, and the rest - abroad. ARD reported that 405 tons are kept at the Bank of England in London, and 1,236 tons - at the Federal Reserve in New York. This means that over a third of Germany's gold reserves, i.e. 37 percent are in the US.
Trump puts pressure on the Central Bank
For years, gold was thought to be safe there. Because central banks are generally independent and have a high level of mutual trust. But US President Donald Trump is trying to change that, the German public media reports. In recent months, he has launched numerous attacks aimed at undermining the independence of the Federal Reserve. He most recently threatened the head of the bank, Jerome Powell, with charges in connection with the renovation of the financial institution's buildings. Powell himself believes that this is just a pretext for putting pressure on him.
Trump previously tried to fire Lisa Cook from the Federal Reserve Board, and the case is currently being considered by the Supreme Court.
For weeks, Trump has been demanding that Powell quickly and comprehensively reduce interest rates, often with offensive posts on the Truth Social platform.
“The more political pressure is put on central banks, as we are currently seeing in the US, the more difficult it is naturally to maintain the basis of trust”, says gold expert Wolfgang Wresnok-Rosbach, quoted by ARD. He states that it is necessary to carefully monitor how Trump will continue to behave with the Federal Reserve and how independent the bank will be in the future.
„America is no longer predictable"
Respectively, storing gold in the US could become a problem for Germany, writes ARD and asks the question - should we be concerned about the security of our gold reserves? „Currently, the gold reserves are in a safe place in the US. But tomorrow it could happen that the US government suddenly says: „We will keep the reserves as a guarantee", commented Wresnok-Rosbach. The risk arising from Donald Trump is high. „Currently, the US is not a reliable partner for the EU", also says the president of the Center for European Economic Research, Achim Wambach.
Under Trump's leadership, German gold is no longer safe in the US, believes capital markets expert Stefan Riesse. "With Trump, America is no longer predictable. We just see that he has something against Europe and especially against Germany." According to Riise, nothing is certain. "If you look at what is happening in Greenland, you inevitably ask yourself whether any old rules apply to the Trump administration at all."
Should Germany take its gold?
That is why more and more experts are recommending that the gold be taken from New York to Germany - this increases independence and flexibility. "The ratio of chances and risks in any case speaks in favor of moving the reserves to Germany," says Riise. If the gold is in Germany, there will be no risks, but as long as it is in the US - the risk is a fact. Until now, this risk has been considered small compared to the high costs of transporting the gold to Germany. “But with Donald Trump, a reassessment of the risks is necessary."
At the same time, experts note that it is important to wait for the right moment. As the president of the ifo Institute for Economic Research, Clemens Fuest, says, rushing will only add fuel to the fire. “This step should be taken sooner in a situation where there are no acute conflicts."
Why is the gold abroad?
The fact that the gold is located abroad has mainly historical reasons, explains ARD. "The reserves were not taken abroad - they were never actually in Germany," says expert Wresnok-Rosbach.
After World War II, Germany quickly found itself with a large surplus in the trade balance, respectively with a surplus of currency, mainly dollars - this money was subsequently converted into gold. There is also something else, as Wresnok-Rosbach explains: "At that time, they did not want to store the gold in Germany - because in the event of a possible war it would fall into the hands of the enemy."
Over time, some of the gold was returned to Germany - 300 tons were transferred from New York, as well as all 374 tons that were stored in Paris.
The Bundesbank does not plan to move
The Federal Reserve has no plans to return the gold for now. The bank's position is that security and trade opportunities are crucial so that the gold can be sold or converted into foreign currencies if necessary.
“Based on these criteria, the Federal Reserve regularly evaluates the locations of its gold reserves. The Federal Reserve in New York is and remains an important place to store our gold within this framework,” the bank said in a statement to the ARD. The Bundesbank had no doubts that German gold was in a safe place in the United States.
Author: Michel Godemayer (ARD)