The Dutch central bank recently moved 86 tonnes of gold to London, shifting its reserves from 18.1% to 32.1% in the city, surpassing the 30.8% held domestically. The bank cited improved liquidity, easier trading, and better crisis preparedness as reasons for the move, marking a shift from past practices where countries like Germany and the Netherlands repatriated gold for safety. Meanwhile, India has taken the opposite approach, increasing its domestic gold holdings to 880.52 tonnes by March 2026, with 77% stored in India.
Both strategies have valid points. Holding gold domestically ensures sovereignty but limits its usability, while storing it in financial hubs like London allows for quick sales, loans, or pledges during crises. Central banks primarily trade gold in London, with the Bank of England’s vaults holding a significant share of global reserves. India’s 1991 crisis, where it had to pledge gold to the Bank of England to raise funds, highlights the importance of market access.
Asia is now building alternatives to London’s dominance. China has been buying gold for 22 consecutive months, while Singapore and Hong Kong are expanding their gold services. India, as the world’s second-largest gold consumer, could play a bigger role by developing the India International Bullion Exchange (IIBX) into a regional hub for storage, trading, and clearing, attracting central banks from South Asia, the Gulf, and Africa.