European Central Banks Flee North American Gold Reserves Amid Geopolitical Uncertainty

European central banks are moving their gold reserves out of North America in response to growing geopolitical uncertainty. The Netherlands' central bank, De Nederlandsche Bank, recently relocated 86 tonnes of its gold from the US and Canada to London, citing a need for 'better preparedness for severe crises'.

This move is not isolated - France has also removed its gold reserves from the US, while Germany's Bundesbank transferred over 216 tonnes of gold from storage locations abroad between 2013 and 2016.

Experts say that inflation, interest rates, and the ability to quickly trade gold in a crisis are all contributing factors. 'I don't get a sense that there's an impending doom,' said Joseph Cavatoni, senior market strategist at the World Gold Council, 'but what I do think is people are being better educated around how to manage their reserve assets...'

London was chosen as the new storage location due to its position as a major trading centre. The Bank of England holds over 400,000 gold bars worth more than £200bn, making it one of the largest custodians of gold in the world.