European Countries Flee North American Gold Reserves Amid Geopolitical Tensions
The Dutch central bank has moved 86 tonnes of gold from North America to London, citing the need for 'better preparedness' in case of a crisis. The relocation comes as several European countries are shifting their gold reserves out of North America due to growing geopolitical tensions and instability.
The Netherlands is not alone in this move. France removed its gold reserves from the US earlier this year, and Germany's Bundesbank transferred over 216 tonnes of gold from storage locations abroad between 2013 and 2016.
According to Joseph Cavatoni, senior market strategist at the World Gold Council, while wars and trade tensions are contributing factors, they 'don't top the list' of motivating reasons. Inflation, interest rates, and having gold in a place where it can be traded quickly also play a role.
The Bank of England is one of the largest custodians of gold in the world, holding over 400,000 bars worth more than £200 billion in its vaults. The bank remains the most popular vaulting location for central banks, but they are increasingly diversifying their storage options.