Central Banks Redistribute Gold Reserves for Crisis Preparedness

Central banks around the world are rethinking where they store their gold reserves. The latest example is the Netherlands, which has moved about 86 tonnes of its gold from New York and Ottawa to London. This doesn't mean the country's buying more bullion - it just means the existing holdings are now closer to the world's most liquid gold market.

The Dutch central bank said the move is aimed at improving crisis preparedness, allowing for faster trading in a time of need. The Bank of England's vaults hold around 400,000 bars, or roughly 5,000 tonnes, making it one of the largest gold custodians globally.

London is also the world's largest over-the-counter market for physical gold, where gold can be traded without leaving the vault. This convenience and liquidity are key reasons central banks want their gold stored there.