Dutch Central Bank Relocates Gold Reserves from U.S. Amid Geopolitical Tensions

De Nederlandsche Bank, the Netherlands’ central bank, has relocated over a quarter of its 345 U.S.-stored gold reserves to London since March, citing heightened geopolitical instability and the need for enhanced crisis preparedness.

The bank explained that gold held at the Bank of England is “regarded as the world’s most tradable” and offers greater accessibility during emergencies. President Olaf Sleijpen emphasized the move strengthens the tradeability of the reserves without compromising security, stating, “We expect never to need them, but must fortify our resilience and preparedness.”

This decision coincides with strained transatlantic relations, as EU officials have voiced concerns over U.S. foreign policy under the Trump administration. Economists and policymakers in Germany and Italy have similarly advocated for repatriating gold reserves, reflecting broader European anxieties about U.S. economic policies and regional conflicts.

Gian Maria Milesi-Ferretti of the Brookings Institution noted that while storage location affects liquidity, European governments may also prioritize domestic perceptions of asset security. “It matters little where gold is stored so long as it is safe and tradeable, but political considerations about holding assets in the U.S. could influence European strategy,” he said.

The Netherlands transferred approximately 95 tons of gold, primarily from the Federal Reserve Bank of New York, with smaller amounts moved from the Bank of Canada. London now holds 32% of Dutch reserves, up from 18%, while storage in the U.S. and Canada each stands at 18.5%. The remaining 30% remains in Zeist, Netherlands, unchanged.

The relocation process involved selling 65 tons in New York, purchasing equivalent quantities in London, and physically transferring nearly 30 tons from North America to Zeist, with subsequent transfers to London. Nearly one-third of Dutch gold reserves are now held in London, enhancing their tradability while maintaining security through established vault systems.

This marks the second European nation this year to reduce U.S. gold holdings, following France’s sale of 140 tons via transactions between July 2025 and January 2026, which generated $15 billion in profit from elevated gold prices. France’s central bank denied political motives behind the move.

Other European nations maintain diversified gold storage: Germany keeps half its reserves domestically, 33% in New York, and the remainder in London; Italy holds 40% domestically, 40% in New York, and 20% in London and Switzerland. Neither Germany nor Italy has announced plans to repatriate reserves.

Central banks globally rely on secure vaults like those at the Federal Reserve and Bank of England, which have never experienced theft. Shared storage facilities enable intra-country gold trading without physical movement, streamlining transactions. The Netherlands’ shift reflects broader trends toward strategic reserve diversification amid evolving geopolitical landscapes.

While the transfer commenced after the U.S.-Israeli strikes on Iran, economists caution that such decisions typically follow lengthy deliberation. “Rapid action suggests multiple factors beyond recent conflicts influenced the timing,” Milesi-Ferretti observed.

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