Economists are urging this European country to withdraw its gold from the US: “Too risky”

Germany now ranks as the world’s second‑largest holder of national gold reserves, behind only the United States.

The country has roughly €164 billion worth of gold — about 1,236 metric tons — stored in New York. But rising tensions between Denmark and the United States, fueled by President Donald Trump’s renewed push for the U.S. to acquire Greenland, have sparked serious concern among economists about the safety of Germany’s gold on American soil.

Emanuel Mönch, a prominent economist and former head of research at Germany’s central bank, the Bundesbank, is urging the government to bring the gold home. He told the financial newspaper Handelsblatt that “given the current geopolitical climate, it seems risky to store so much gold in the United States.” For the sake of “greater strategic independence from the U.S.,” he argued, the Bundesbank should consider repatriating its reserves.

Mönch isn’t alone. A growing number of economists and financial experts say storing Germany’s gold domestically would strengthen Europe’s strategic autonomy — a goal the European Union has been pursuing for months, according to The Guardian. Even so, their calls aren’t gaining traction. Stefan Kornelius, spokesperson for the coalition government led by Chancellor Friedrich Merz, recently admitted that Berlin is not considering withdrawing its gold from New York at this time.

Rising concerns

Adding to the pressure is Michael Jäger, head of the European Taxpayers Association and the German Taxpayers Association. Jäger argues that Trump’s insistence on acquiring Greenland is proof enough that Germany’s gold is no longer safe in the Federal Reserve’s vaults. “Trump is unpredictable and will do anything to generate revenue. That’s why our gold is no longer secure in New York,” he told the Rheinische Post.

“What happens if the Greenland provocation continues? The risk grows that the Bundesbank could lose access to its gold. It should repatriate its reserves,” he added. Jäger has sent formal letters to both the Bundesbank and Germany’s Finance Ministry urging immediate action.

Public concern is rising as well. What was once a talking point limited to the far‑right Alternative for Germany (AfD) is now gaining traction among mainstream economists.

Only 37% of Germany’s gold is in New York

Katharina Beck, finance spokesperson for the Green Party in the Bundestag, has joined the calls for relocation. She describes Germany’s gold reserves as an “important anchor of stability and trust” that should not become “pawns in geopolitical disputes.”

But Clemens Fuest, a leading economist and president of the Ifo Institute, warns that repatriating the gold could escalate tensions further, saying the move would “only add fuel to the fire.”

Germany doesn’t keep all its gold in the United States. Following the principle of not “putting all your eggs in one basket,” a large share is stored at the Bundesbank in Frankfurt. About 37% is held at the Federal Reserve Bank of New York, while 12% is stored at the Bank of England in London. The Bundesbank says it conducts regular audits of all its gold holdings.

Joachim Nagel, president of the Bundesbank, attended the International Monetary Fund meetings in Washington, D.C., last October and reassured attendees that there was “no cause for concern” regarding Germany’s gold in New York. His message was echoed by Frauke Heiligenstadt, financial‑policy spokesperson for the Social Democrats, who said she understood the worries but saw no reason for panic.

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