Germany’s conservative politicians are sounding the alarm over the 1,236 metric tons of gold—worth roughly €113 billion ($122B)—still sitting in the New York Federal Reserve as geopolitical tensions mount and trust in U.S. leadership continues to erode.
For decades, the U.S. was considered the safest possible custodian for gold. But under President Donald Trump, that belief is being tested like never before.
Gold in the Crosshairs
The Bundesbank keeps 37% of Germany’s gold reserves in the U.S. for fast access to dollars in case of crisis. But with Trump now openly undermining European industries, supporting Germany’s far-right AfD party, and allies like Elon Musk calling for U.S. vault inspections, trust in the Fed’s neutrality is evaporating.
“Of course, the question now arises again,” said CDU lawmaker Marco Wanderwitz, who has pushed for repatriation since 2012.
“Bundesbank officials must personally count the bars,” added EU lawmaker Markus Ferber, demanding verification.
2013 Flashback: France’s Gold Came Home
This isn’t the first time Germany has pulled gold out of foreign vaults. In 2013, rising nationalist pressure led the Bundesbank to repatriate all gold held in France, arguing Paris was no longer essential for currency exchange in the euro era. Now, over 50% of reserves are back in Frankfurt, with 13% still in the Bank of England.
Bundesbank Defends Fed
Despite political pushback, the Bundesbank continues to publicly defend the U.S. as a storage partner:
“We have a trustworthy and reliable partner in the Fed,” said President Joachim Nagel, insisting “it doesn’t keep me awake at night.”
Still, critics warn that Trump’s consolidation of executive power, volatile trade policy, and politicization of institutions—including threats to the Fed’s independence—are new variables that didn’t exist in 2013.
Why Now?
The gold panic isn’t just symbolic. For Berlin, it’s part of a broader shift away from postwar certainties as:
- Trump doubles down on reciprocal tariffs, targeting European exports
- U.S. election interference and NATO skepticism alarm German officials
- Trump ally Elon Musk calls for a Fort Knox audit—fueling fears globally
“The unthinkable is suddenly thinkable again,” writes POLITICO’s Carlo Martuscelli.
Germany’s gold, long hidden deep beneath Manhattan, is now a lightning rod for fears about American stability in the Trump era. With global financial trust fraying fast, Europe may soon face a defining question: What happens if even the gold stops feeling safe?
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