European Central Banks Shift Gold Reserves from North America to London

European central banks are shifting their gold reserves from North America to London amid rising geopolitical tensions. The Netherlands has followed in the footsteps of France and Germany by relocating part of its gold reserves to London's Bank of England. Between March and August, De Nederlandsche Bank (DNB) transferred 86 tonnes of its approximately 313 tonnes held in the US and Canada to London.

The move was made 'in view of increasing geopolitical unrest' to ensure the gold is 'readily available for use in a crisis situation,' according to DNB. The Bank of England was chosen for its status as a major global trading hub, with vaults containing around 400,000 gold bars valued at over £200 billion.

DNB sold about 59 tonnes in New York and purchased an equivalent amount in London, eliminating the need for transatlantic transport. The relocation involved both physical transfers and gold transactions, with more than 27 tonnes physically moved from the US and Canada to the Dutch town of Zeist before being transferred to London.

The Netherlands' decision aligns with a broader trend of increasing gold purchases by central banks. Over the past four years, central banks have averaged annual acquisitions of 1,000 tonnes, a significant rise from the previous decade's average of 500 tonnes per year.