Europe Shifts Gold Reserves from America: What’s the Destination?
Gold is increasingly becoming a focal point for European central banks amid rising geopolitical tensions. The Netherlands has recently shifted part of its gold reserves from North America to London, following similar moves by France and Germany. This relocation has sparked concerns about potential economic shocks, although experts suggest it is more about adapting to a volatile global landscape.
Why the Netherlands shifted its gold
Between March and August, De Nederlandsche Bank (DNB) transferred 86 tonnes of its approximately 313 tonnes held in the US and Canada to the Bank of England in London. DNB stated that the move was made “in view of increasing geopolitical unrest” to ensure the gold is “readily available for use in a crisis situation.” Governor Olaf Sleijpen emphasized the necessity of strengthening resilience and preparedness amid ongoing trade disputes and military conflicts, including tensions between the US and Canada.
Relocation to London
London was selected for its status as a major global trading hub. DNB considers gold stored with the Bank of England to be the most easily tradable, making it more accessible in a crisis compared to gold held in North America. The Bank of England is one of the largest gold custodians globally, with vaults containing around 400,000 gold bars valued at over £200 billion. Surveys indicate that the Bank of England remains a preferred location for central banks, although there is a trend toward diversifying gold storage.
The Dutch relocation has altered DNB’s reserve distribution. Before the transfer, 31.3% of its gold was in New York and 19.7% in Ottawa. These shares have now decreased to 18.5%, while London’s share increased from 18.1% to 32.1%. Approximately 30.8% of DNB’s gold remains in the Netherlands, with a total gold stock of 612.4 tonnes valued at €72.2 billion as of the end of 2025.
Not all the gold was physically moved
The relocation involved both physical transfers and gold transactions. DNB sold about 59 tonnes in New York and purchased an equivalent amount in London, eliminating the need for transatlantic transport. More than 27 tonnes were physically moved from the US and Canada to the Dutch town of Zeist, and a similar quantity was then transferred to London. DNB noted that this combined approach allowed for risk mitigation during the complex relocation process.
The specific transport methods used have not been disclosed, as companies involved maintain confidentiality. Extensive security measures and planning are required to safely move such large quantities of gold.
Central banks are buying more gold
The Netherlands’ decision aligns with a broader trend of increasing gold purchases by central banks. Over the past four years, central banks have averaged annual acquisitions of 1,000 tonnes, a significant rise from the previous decade’s average of 500 tonnes per year. This trend has persisted since the global financial crisis and is expected to continue.
Storing gold domestically incurs costs, including investments in security, audit infrastructure, and insurance, which can be burdensome for smaller central banks. Earlier this year, France also moved gold from New York to Europe, citing purity standards as the reason. The Banque de France sold 129 tonnes of gold that did not meet the London Bullion Market Association’s standards and purchased an equivalent amount in Europe, resulting in a capital gain of €11 billion in 2025. France’s total gold reserves remained unchanged at 2,437 tonnes.
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