Global Central Banks Rush to Repatriate Gold Reserves Amid Sanctions Concerns

Central banks around the world are shifting their gold reserves closer to home as they reassess their physical gold holdings. Spain is one of the countries facing pressure over where to store its bullion, with the Bank of Spain declining to say how much gold it holds in New York or whether a move is planned due to confidentiality.

The discussion follows other countries repatriating their gold reserves, such as the Netherlands moving 86 tonnes from North America to London and France selling 'non-standard' bars stored in New York. India has also been actively bringing its gold back home, with 100 tonnes repatriated from the UK in spring 2024 and a further 104 tonnes over the past six months.

The trend is driven by concerns over sanctions and reserve freezes, as seen with Russia's $650bn gold and FX reserves being immobilised last year. The World Gold Council survey shows that 68% of central banks plan to keep their gold onshore, up from 50% in 2020.