Germany’s 355-billion-euro gold stash stays abroad despite rising geopolitical risks
Germany’s Bundesbank holds over 3,350 tons of gold, worth more than 355 billion euros. Most of these reserves remain stored abroad, particularly in New York and London. Officials argue that keeping them overseas ensures flexibility and security during crises.
The EU, meanwhile, is preparing a 140 billion euro loan for Ukraine, using frozen Russian assets as collateral. This move highlights the risks of holding foreign assets in uncertain political climates.
Germany’s gold reserves have been stored in the US since the Cold War era. The Bundesbank retains full control over them and can withdraw or relocate the gold if needed. The primary reason for keeping it abroad is rapid access to US dollars in emergencies.
Despite occasional debates, the Bundesbank sees no need for large-scale repatriation. It insists that foreign storage offers strategic benefits, such as crisis responsiveness and added security. Only partial repatriation has taken place to ensure the reserves remain usable without restrictions.
The EU’s plan to use frozen Russian assets as loan collateral for Ukraine raises questions about asset security. If Russian holdings can be seized, other foreign-held assets might face similar risks in the future. Germany’s federal budget for 2025 stands at around 500 billion euros, making the gold reserves a significant financial safeguard.
The Bundesbank’s decision to keep most gold reserves abroad reflects a balance between security and accessibility. Meanwhile, the EU’s use of frozen Russian assets for Ukraine’s loan sets a precedent for handling foreign-held wealth in times of conflict. Both situations underscore the importance of strategic financial planning in an unpredictable global landscape.
