The Netherlands moves Gold out of North America citing geopolitical risk

The Netherlands moved approximately 86 tonnes of gold valued at over €10 billion from North America to London, citing “increasing geopolitical unrest” and a desire to “strengthen crisis preparedness.”

The country joins a growing list of countries moving gold out of the U.S to reduce counterparty risk.

According to a statement from De Nederlandsche Bank (DNB), it sold 59 tonnes of gold stored in New York and used the funds to purchase gold in London “that meets the international market standards.” It also physically moved more than 27 tonnes of gold from the U.S. and Canada to Zeist, simultaneously transferring a similar amount of gold from Zeist to London to avoid remelting bars.

“Combining the processes of buying and selling and physical transport has allowed DNB to spread the risks associated with such a complex physical gold relocation operation, while also ensuring efficiency and cost-consciousness.”

The statement said the operation also served as crisis preparation.

“Moreover, experience of both approaches will be useful in the event that another relocation is required during a potential future crisis, and one of the two approaches proves impossible due to circumstances at the time. This also fits in with DNB’s efforts to increase its crisis preparedness.”

The Netherlands holds 612.4 tonnes of gold in its reserves. According to the DNB, about 18 percent of its gold remains in the U.S., with another 18 percent stored in Canada. Thirty-two percent of its gold reserves are now stored in London, with 31 percent stored within the country’s borders.

Based on the DNB’s statement, it’s clear that worries about access to its gold were a primary reason for the move.

“Gold that is held with the Bank of England must meet modern international trade standards and is regarded as the world's most easily tradable gold and will therefore be the most readily available for DNB in a crisis situation. The gold reserves held in New York and Ottawa cannot be utilized as quickly and directly in such a situation.”

A broader trend: We don't trust America

Notably, countries with historically friendly relations like the Netherlands are beginning to judge the U.S. as a political risk.

As the Financial Times reported, “The transfer follows calls from European politicians and taxpayer lobbyists to repatriate gold reserves from the U.S., warning that an unreliable American government under President Donald Trump may otherwise seize them amid growing transatlantic tensions.”

France completed a gold repatriation project earlier this year. The Banque de France (BdF) unloaded “non-standard” gold bars of varying purity and size that were stored in New York. The central bank used the proceeds to purchase new gold bars that meet international reserve standards for weight, purity, and certification. Think of it as exchanging “junk silver” for pure .999 silver coins.

The upgraded gold will remain safely within French borders.

At the time, Metals Focus senior analyst Junlu Liang said these gold movements show how central banks are reassessing the role of gold in reserve management.

“In some countries, domestic political considerations have further strengthened calls to relocate gold holdings closer to home.”

There have also been calls for gold repatriation from German politicians spanning the political spectrum. The Bundesbank brought half of its gold home in 2013, moving 674 tonnes of gold from Paris and New York back to Germany. However, the Bundesbank still stores about one-third of its gold in New York vaults.

Earlier this year, Emanuel Mönch, a leading German economist and former Bundesbank head of research, said it’s “too risky” to keep gold reserves in New York.

“Given the current geopolitical situation, it seems risky to store so much gold in the U.S. In the interest of greater strategic independence from the U.S., the Bundesbank would therefore be well-advised to consider repatriating the gold.”

India is another country aggressively repatriating its gold. In the spring of 2024, the Reserve Bank of India brought 100 tonnes of gold home, repatriating it from vaults in the UK. Over the last six months, the Indian central bank has repatriated another 104 tonnes.

Based on data from the Management of Foreign Exchange Reserves, India now has about 680 tonnes of its 880.52-tonne gold reserves (77 percent) stored within its borders. Approximately 197.67 tonnes remain stored in vaults at the Bank of England and the Bank for International Settlements. 

According to the Economic Times of India, the weaponization of the dollar by the U.S. is one of the key factors driving gold repatriation, specifically aggressive sanctions levied on Russia after it invaded Ukraine and the freezing of Afghanistan’s reserves by Western powers.

“Those episodes, involving G7 countries restricting access to sovereign assets, have reshaped how central banks think about custody.”

According to the World Gold Council survey, the Bank of England remains the most popular overseas vaulting location. Fifty-seven percent of the central banks surveyed indicated they held some gold in the UK. That was down from 64 percent last year.

Domestic vaulting was the second-most popular option, with 49 percent expressing it as their preference.

The number of banks vaulting at least some gold in New York also dipped, falling from 17 percent last year to 14 percent before the Netherlands removed some of its gold.