Dutch Central Bank Shifts Gold Reserves from New York and Ottawa to London

The Dutch central bank has moved around 86 tonnes of gold from New York and Ottawa to London, increasing its share of gold reserves held in the UK city. The move aims to improve the country's crisis preparedness by making it easier to access their gold reserves during a financial crisis.

London is the world's largest over-the-counter market for physical gold, with the Bank of England holding around 400,000 bars or roughly 5,000 tonnes in its vaults. The gold stored at the Bank can change ownership without leaving the vault, making it easier to sell or swap for foreign currency during periods of market stress.

The Dutch central bank has taken a different approach than other countries, such as France which has brought US-held gold back home to Paris. While some countries are choosing to hold their gold domestically, others like Serbia plan to keep it in London. The move by the Dutch central bank is part of a trend where central banks are rethinking how they manage their gold reserves.