Why are European countries moving their gold out of North America?

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Why are European countries moving their gold out of North America?

When the central bank of the Netherlands confirmed this week that it had moved tonnes of the country’s gold out of North America, it said the relocation would make it “better prepared for severe crises”.

Some 86 tonnes from the combined total of about 313 tonnes held in the US and Canada were relocated to London “in view of increasing geopolitical unrest”, it said, so the shiny stuff could be “readily available for use in a crisis situation”.

Questions were bound to follow. Why were the Dutch doing this? Were they anticipating some major economic shock on the horizon?

It seems not, but the move was clearly in response to the unstable and uncertain state the world finds itself in, with trade and military wars prompting countries to take precautions and hold their gold closer to home.

Earlier this year, France announced it had removed its gold reserves from the US to home shores. Meanwhile, Germany’s Bundesbank transferred more than 216 tonnes of the metal from storage locations abroad – 111 tonnes from New York and 105 tonnes from Paris – over a few years ending in 2016.

It is a strategy which has played out before in times of global instability. “Some European central banks moved part of their gold holdings to New York during the Cold War,” said research analysts Lina Thomas and Daan Struyven of Goldman Sachs.

Joseph Cavatoni, senior market strategist at the World Gold Council, told the BBC while wars and trade tensions were “playing into some of these decisions”, it didn’t “top the list” of motivating factors.

Inflation, interest rates and just having gold in a place where it can be traded quickly also played a role.

“I don’t get a sense that there’s an impending doom,” Cavatoni said, “but what I do think is people are being better educated around how to manage their reserve assets, growing their reserve assets, and actually thinking more effectively around how to make the most of those assets.”

De Nederlandsche Bank said the gold removed from the US and Canada between March and August this year was now being held in the vaults of the Bank of England.

“We expect that we will never need to use them, but we do need to strengthen our resilience and preparedness,” said the governor of the Dutch central bank, Olaf Sleijpen.

London was seen as the best choice due its position in the world as a major trading centre. If you want to be able to buy or sell gold fast in a crisis, London is the place to be, which makes the Bank of England a popular storage spot.

Getty Images The Bank of England in the city of London holds tonnes of gold bars in its vaults. This is an aerial view of the bank which is a historic building. — The Bank of England in London holds a lot of gold bars in its vaults

The Bank is one of the largest custodians of gold in the world. Underneath the 300-year-old institution in central London sits about 400,000 bars worth more than £200bn.

According to industry surveys by the World Gold Council, the Bank of England remains the most popular vaulting location, but central banks are increasingly diversifying where they store the precious metal.

Where to store your country’s gold is “increasingly top of mind for reserve managers”

In the modern world, there are many ways to shift your treasure around. The Dutch sold about 59 tonnes in New York and then bought more stocks in London, meaning that amount didn’t need to be hauled across the Atlantic.

But more than 27 tonnes were “physically transferred” from the US and Canada to the Dutch town of Zeist. A similar quantity was also sent from Zeist to London.

Companies that perform such services are tight-lipped on how operations are carried out, but it’s fair to say the security measures and planning are extensive to avoid the risk of a real-life Italian Job.

Cavatoni, of the World Gold Council, said one standard approach to move gold stocks was to sell the commodity in one place and buy it in another. “Let’s say I want my gold in New York and I have it in London. I could sell it in London, buy it in New York, same day, same time, effectively book transfer without actually having to put it on any other logistical change.”

There are only a few select companies which handle gold shipments across borders, one of which is Brink’s Global Services, who told the BBC it had seen “increased demand” from the likes of central banks in recent times.

“Heightened geopolitical and economic uncertainty, along with gold’s growing role as a strategic reserve asset, appear to be contributing to this trend,” said Nader Antar, Brink’s executive vice president.

A line chart showing the price of gold per ounce in US dollars, from 2006 to 2026, adjusted for inflation to show mid-2026 prices. At the start of the time series, in September 2006, the inflation-adjusted price was around $985. The price generally trended upwards over the following two decades, although with several periods of volatility. After rising to around $1,500 in early 2008, it fell sharply during the global financial crisis, reaching a trough of around $1,116 in October 2008. The price then recovered and climbed through the 2010s, exceeding $2,500 in 2011 and again in 2012, before easing back and fluctuating mostly between $1,500 and $2,500 for much of the following decade. From late 2023 onwards, growth accelerated, with the price rising rapidly from around $2,000 to a record high of around $5,394 in February 2026. Since that peak, the price has fallen back but remains well above historical levels. In the latest data, for July 2026, the price stood at around $4,046.

The reason gold storage is such a topic in the minds of central banks is because they have been increasingly buying the stuff. But storing it at home comes at a cost, said Thomas and Struyven of Goldman Sachs.

“Domestic storage requires investment in physical security, audit infrastructure, and insurance; costs that can be disproportionate for smaller central banks,” they said.

Over the past four years, central banks have accumulated an annual average of 1,000 tonnes of gold, up significantly from the 500 tonnes average over the preceding decade, according to the World Gold Council.

The trend stretches back to the global financial crisis. And that is only expected to go up in the next year.

Gold has been having a moment in recent years. Its price has surged to hit a series of record highs, passing $5,000 an ounce in January.

There are several reasons behind its value jumping, but a major factor has been the precious metal’s position in the human psyche as a so-called safe haven asset, to invest during periods of financial and geopolitical turmoil caused through trade and military wars.

Inflation and interest rates also influence gold’s popularity. Due to the commodity’s scarcity and the value placed on it across thousands of years, it is somewhat resistant against rising prices, and so is seen as a good investment.

“Over the past half-century, gold prices have risen much faster than the Consumer Price Index (CPI) – the most closely watched measure of inflation,” according to investment bank Charles Schwab.

While the price of gold has fallen from the record high seen early this year, it still remains at a high level historically.

According to researchers at Goldman, the price is forecast to rise to $4,900 (£3,624) per troy ounce by the end of 2026, $300 more than it was in August.

The demand for gold from central banks is one key reason why prices are surging

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