Central Banks Shift Gold Reserves to London Amid Crisis Planning

Central banks are increasingly considering how they manage their gold reserves during times of crisis. The Netherlands has recently shifted part of its holdings from North America to London, where it can be traded more quickly in a crisis.

The Dutch central bank moved around 86 tonnes of gold from New York and Ottawa to London, without buying any new bullion. This change brings London's share of the country's gold reserves up to 32.1%, while those held in North America have decreased to 18.5% each.

Central banks have been steadily increasing their gold holdings over the past few years, with a record high of over 1,000 tonnes added between 2022 and 2024. According to a recent survey by the World Gold Council, 89% of reserve managers expect global central bank gold holdings to increase in the next 12 months.

London's status as the world's largest over-the-counter market for physical gold makes it an attractive location for central banks looking to quickly access their reserves. The Bank of England holds around 400,000 bars, or roughly 5,000 tonnes, on behalf of foreign central banks and international organizations.