Government officials and experts in Germany are getting more worried about the safety of Germany’s gold that is kept in the United States. This is happening because the relationship between the US and the EU is getting worse.
Germany has the second-largest amount of gold in the world — 3,352 tonnes. Only the US has more. But almost 40% of Germany’s gold, which is around 1,250 tonnes, is stored in the vaults of the New York Federal Reserve, according to the German newspaper Bild.
Gold is useful in times of global problems because it can be turned into money easily. Germany’s central bank, the Bundesbank, believed that keeping some gold in the US would make it easier to get US dollars quickly if needed. But now, many people in Germany are starting to feel nervous about this. The gold is now worth more than 100 billion euros. They are especially worried because President Trump has often hinted he plans to have more control over the Federal Reserve. Some people are now saying the authorities should initiate the return of the gold back from the US.
Michael Jäger from the European Taxpayers’ Association told Bild that the Bundesbank and the German government should act quickly during this time of political change all over the world. He agrees with people that all gold must be kept in the state. He said that since Berlin and Brussels are talking about taking on a lot of new debt, Germany must have fast access to its gold if a crisis happens. He added that, at the very least, the officials should check the gold that is stored in the US. He even suggested testing the gold bars to make sure they are real.
Markus Ferber, a member of the European Parliament, agreed. He told Bild that he wanted regular checks of the German gold and even suggested that Bundesbank officials should go, take each bar, and write down the final number.
But the Bundesbank does not seem worried. In February, its president, Joachim Nagel, said they are confident about the New York Fed. He called it a safe and loyal partner for storing Germany’s gold.
The New York Federal Reserve is the largest keeper of gold in the world. It stores around 6,330 tonnes of gold for over 30 foreign national banks. Besides Germany, countries like Austria and Sweden also keep their gold there.
