European Countries Are Bringing Their Gold Closer to Home. Why They Are Moving Their Reserves

European countries are taking a closer look at where they keep their gold. The Netherlands has confirmed that it moved about 86 tonnes from the roughly 313 tonnes it held in the United States and Canada to London, citing the need to be better prepared for severe crises and to have the metal available quickly in an emergency.

The decision comes amid geopolitical tensions and economic uncertainty, but it does not mean the Netherlands expects an imminent economic shock. France has also withdrawn gold from the United States, while Germany transferred more than 216 tonnes from overseas storage by 2016. European central banks used similar strategies during the Cold War.

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more prepared for severe crises

De Nederlandsche Bank said the Dutch transfer took place between March and August. London was chosen because it is a major trading center, and the Bank of England remains the most popular location for storing gold. It holds about 400,000 bars worth more than £200 billion.

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I do not have the feeling that a disaster is approaching

The Netherlands avoided moving all the metal across the Atlantic. It sold about 59 tonnes in New York and bought gold in London, effectively transferring the holdings through transactions. More than 27 tonnes were physically moved from the United States and Canada to Zeist, with a similar amount later sent to London. Such operations require extensive security and planning.

Joseph Cavatoni of the World Gold Council said wars and trade tensions influence some decisions, but do not top the list of motives. He said central banks are becoming more informed about how they manage and expand their reserves. A standard method, he explained, is to sell gold in one location and buy it in another, creating an accounting transfer without additional logistics.

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Let us say I want my gold to be in New York and I have it in London. I could sell it in London and buy it in New York, on the same day, at the same time, effectively making an accounting transfer without having to subject it to any other logistical operation.