German politicians fret over gold reserves held in the US

Politicians and experts in Germany are increasingly concerned over the security of the nation’s vast quantity of gold stored in the United States as US-EU relations continue to deteriorate.Germany currently holds the world’s second-largest reserves of gold at 3,352 tonnes, behind only the US. However, it is estimated that about 37% of those (roughly 1,236 tonnes) are held in vaults of the New York Federal Reserve, according to German publication Bild.The yellow metal is known for its ability to provide security and liquidity during geopolitical turbulence. By keeping some of its gold across the Atlantic, the Bundesbank would theoretically have quick access to US currency should the need arise.However, many in Germany are now feeling uneasy bout keeping its precious metal there, now estimated to be worth over €100 billion, especially with US President Donald Trump repeatedly expressing the desire to gain more control over the Federal Reserve.Some are now calling for the German government to bring their gold back as soon as possible.“The Bundesbank and the federal government must show foresight in this phase of global political power shifts and immediately bring back German gold from the USA. Especially at a time when immense new debt is being discussed in Berlin and Brussels, we need immediate access to all gold reserves in an emergency,” Michael Jäger of the European Taxpayers’ Association told Bild.At the minimum, the government should conduct “a review of the reserves” held in the US, and even do a physical test on the gold bars, Jäger added.Markus Ferber, Member of the European Parliament, echoed the same worries to Bild: “”I demand the regular control of the German gold reserves. To do this, official representatives of the Bundesbank must personally count the bars and document their results.”However, as of now, the Bundesbank does not appear to share these concerns. “We have (…) there is no doubt at all that with the New York Fed we have a trustworthy, reliable partner in the storage of our gold holdings,” Bundesbank President Joachim Nagel stated in February.It is estimated that the Federal Reserve Bank of New York, as the world’s largest gold custodian, stores 6,331 tonnes of the metal on behalf of more than 30 foreign central banks. In addition to Germany, other prominent European economies storing their gold with the New York Fed include Italy and Switzerland. Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com