German Lawmaker Urges Repatriation of Gold Reserves Held in US

(MENAFN) A senior German politician has called for the immediate return of the nation’s gold reserves stored in the United States, warning that President Donald Trump’s “unpredictable” policies pose a growing threat to Germany’s economic security, a news magazine reported Friday.

Marie-Agnes Strack-Zimmermann of the Free Democratic Party (FDP) argued that bringing the reserves back to Germany would reduce strategic vulnerabilities at a time of heightened global instability. “At a time of growing global uncertainties and under the unpredictable US policies of President Trump, it is no longer acceptable that around 37% of Germany’s gold reserves, more than 1,230 tons, are stored in New York,” she said.

Gold markets have surged dramatically, climbing nearly 70% in 2025 alone. Futures prices hit a record $4,860 per ounce this week, driven by central bank purchases, inflation fears, and geopolitical tensions. The rally intensified after Trump threatened tariffs on European nations opposing his Greenland acquisition plan, though he later softened his stance.

The Bundesbank currently holds 1,236 tons of gold—valued at $178 billion—at the US Federal Reserve in New York. For decades, Germany has kept a large portion of its reserves abroad, a practice rooted in Cold War-era strategy and market considerations.

Strack-Zimmermann said that rationale no longer applies. She stressed that “mere faith” in “transatlantic partners” cannot substitute for sovereignty in economic and security policy.

Germany began repatriating some of its reserves between 2013 and 2017, moving gold from New York and Paris back home. Roughly half of the country’s holdings are now stored domestically, with the remainder split between New York and London.

The debate comes as global central banks accelerate gold purchases to hedge against currency risks. A recent media report noted that Russia’s gold stockpile has surged by about $216 billion since February 2022, offsetting the impact of Western asset freezes. Gold now accounts for 43% of Russia’s reserves, up from 21% before the Ukraine war, making it the world’s fifth-largest holder.

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