The Blubber

Germany is weighing the possibility of moving a massive portion of its gold reserves out of the United States, citing unease over President Donald Trump's unpredictable approach to foreign policy.

For years, Berlin has kept 1,200 tons of its gold—roughly a third of its total reserves and the second-largest stash globally after the U.S.—in a secure underground vault at the Federal Reserve Bank in New York. But according to a report by Bild, leading members of the Christian Democratic Union (CDU), the party expected to head the next German government, have revisited the idea of repatriating that gold due to concerns that the U.S. can no longer be counted on as a reliable partner.

Marco Wanderwitz, a former minister and long-time CDU lawmaker, told the paper: “Of course, the question has come up again.” Wanderwitz has previously pushed for Germany to gain clearer access to and oversight of its gold holdings, even requesting to personally inspect the bars back in 2012—a request that was ultimately denied.

Germany accumulated much of its gold after World War II, thanks to booming exports and persistent trade surpluses that were converted into gold under the Bretton Woods system.

Markus Ferber, a CDU member of the European Parliament, also supports more oversight. “I demand regular inspections of Germany’s gold reserves,” he told Bild. “Representatives of the Bundesbank must count the bars in person and document the findings.”

These renewed calls for control over the gold were made before Trump’s recent announcement of sweeping tariffs on the European Union, a move that has likely reinforced calls for distancing from U.S. institutions.

The gold Germany holds in New York is worth an estimated €113 billion (roughly £96 billion), making up 30% of the country’s total reserves. The original logic for keeping the gold in the U.S. was to ensure quick access to dollar liquidity in the event of a major financial crisis.

But Michael Jäger, of the Taxpayers Association of Europe, believes the time has come to shift course: “It would be better to bring all German gold reserves to Frankfurt—or at least back to Europe—as quickly as possible.”