Germany brings home its gold stash
Daryl Jackson, News Editor
9 Feb 2017, 5:04 p.m.
The German Federal Bank says it plans to have half its gold reserves moved to Frankfurt by the end of this year.
A lack of confidence in the euro and concerns over the future of Europe means the German public have been uneasy about keeping their gold reserves abroad. Since the height of the cold war its reserves have been held in places like New York and Paris well out of Moscow’s reach.
Germany has the world’s second biggest bullion reserve with a 3,378-tonne, 120 billion-euro gold stockpile. They’ve already moved almost 600 tonnes out of New York and Paris and are hoping to have half its reserves back in Germany by the end of 2017 which is ahead of the original plan of 2020.
"We have a lot of discussions about (U.S. President Donald) Trump, regarding implications on monetary policy, macroeconomics, etc., but we trust the central bank of the U.S.," Bundesbank board member Carl-Ludwig Thiele told a news conference.
"Trump has not triggered a discussion about the storage facility in New York," he said.
The Germans are working hard to pay off debts that were taken out at the height of the banking crisis but it’s thought that the UK’s plans to leave the EU was not a factor in the plan to move more of the country’s reserves back to Germany.
When the relocation has been finalised 1236 tonnes will be kept in New York, 432 tonnes in London and the rest will be in Frankfurt.