European Countries Flee US Gold Reserves Amid Geopolitical Unrest

The Netherlands has moved 86 tonnes of gold from US and Canadian vaults to the Bank of England in London, citing 'increasing geopolitical unrest'. The transfer includes both physical movement of gold and trading of gold in New York for gold in London. This move follows France's earlier decision to shift 129 tonnes of its gold from New York.

Gold reserves have been increasing globally, with the market value rising by 268% between 2018 and 2025, according to the International Monetary Fund. The Netherlands' Bank said it aimed to keep a larger share of its gold in London 'to strengthen the function of gold as an anchor of trust'. France now holds 2,437 tonnes of gold, the fourth-largest reserve globally.

Experts suggest countries are moving their gold reserves out of the US due to concerns about the stability of institutions. Scott French notes that gold is a commodity with intrinsic value, increasing over time, but doesn't provide income. John Hawkins suggests countries are worried about rising interest rates and government debt, making bonds less valuable.