European Central Banks Flee North America for Gold Storage in London

European central banks have been relocating their gold reserves from North America to London and other domestic locations in response to growing geopolitical uncertainty. The Dutch central bank, De Nederlandsche Bank, recently announced it had moved 86 tonnes of gold from the US and Canada to the vaults of the Bank of England.

The move is part of a broader trend among European countries to hold their gold reserves closer to home. In August, France announced it had removed its gold reserves from the US to domestic storage, while Germany's Bundesbank transferred over 216 tonnes of gold from abroad between 2012 and 2016.

Gold storage is becoming increasingly important for central banks as they accumulate more gold in their reserves. Over the past four years, central banks have bought an average of 1,000 tonnes of gold per year, compared to just 500 tonnes over the previous decade.