New York: Amid rising global tensions, European central banks are quietly reshuffling where they keep their gold — not because they expect disaster, but to make sure they can act fast if one strikes.
The Netherlands led the latest wave, confirming this week that it moved 86 tonnes of gold out of the United States and Canada and into vaults in London.
De Nederlandsche Bank (DNB) said the shift, carried out between March and August, was made “in view of increasing geopolitical unrest” so the metal would be “readily available for use in a crisis situation.”
The bank stressed it does not expect to need the gold, but wants to “strengthen our resilience and preparedness,” DNB governor Olaf Sleijpen said.
Why London, not home?
The choice of London is deliberate. The Bank of England runs one of the world’s largest gold vaulting operations and sits at the heart of the global bullion market. For a central bank, that means gold stored there can be bought, sold or pledged more quickly than reserves parked in New York or Ottawa, as reported by BBC.
DNB explained that part of its North American holdings “cannot be utilised as quickly and directly” in an emergency. By moving to London, the Dutch ensure their gold meets the highest international trading standards and can be deployed without delay. Industry experts say this is less about panic and more about smarter reserve management.
Goldman Sachs researchers forecast the price of gold will climb to $4,900 (£3,624) per troy ounce by the end of 2026 — about $300 higher than in August. Thomas and Struyven say strong buying by central banks is one of the main drivers behind the surge.
Joseph Cavatoni, senior market strategist at the World Gold Council, told the BBC that while wars and trade tensions were “playing into some of these decisions,” they did not “top the list” of reasons.
“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.”
A Wider European Shift
The Dutch move follows similar steps by other European nations. Earlier this year, France announced it had removed its gold reserves from the US and brought them home.
Germany’s Bundesbank had already repatriated more than 216 tonnes of gold from abroad — including 111 tonnes from New York — in a multi-year programme that ended in 2016.
Analysts say the trend reflects a broader rethink of where sovereign assets should sit in an era of sanctions, trade wars and military conflicts. “Some European central banks moved part of their gold holdings to New York during the Cold War,” noted Goldman Sachs researchers Lina Thomas and Daan Struyven, pointing out that today’s logic runs in reverse.
Moving gold does not always mean physically shipping bars across the ocean. Central banks often sell in one market and buy equivalent bars in another, achieving the same result with less risk. DNB used a mix of both methods: about 59 tonnes were effectively swapped via market trades, while more than 27 tonnes were physically transferred from the US and Canada to the Dutch town of Zeist, with a similar amount then sent on to London.
Security firms that handle such shipments say demand has risen. Nader Antar, executive vice-president at Brink’s Global Services, told the BBC that “heightened geopolitical and economic uncertainty, along with gold’s growing role as a strategic reserve asset, appear to be contributing to this trend.”
With central banks buying gold at roughly 1,000 tonnes a year — double the average of the previous decade — where to store it has become a top priority. For now, London’s deep markets and trusted vaults make it the preferred hub for European reserves seeking speed, safety and flexibility.
