The Netherlands has relocated roughly 86 tonnes of gold valued at more than €10 billion out of North America and into London, citing "increasing geopolitical unrest" and a desire to "strengthen crisis preparedness." The move places the Netherlands on a growing list of countries pulling gold out of the U.S. in an effort to reduce counterparty risk. (Article by Mike Maharrey, originally published by GoldSeek.)

Gold remains a core component of central bank reserves worldwide, held as a long-standing hedge and an asset that carries no counterparty liability—unlike foreign currency holdings, which depend on the issuer. Where that gold is stored, however, has become an increasingly political question, as custodial access ultimately depends on the storing country's government.

According to a statement from De Nederlandsche Bank (DNB), the Dutch central bank sold 59 tonnes of gold stored in New York and used the proceeds to purchase gold in London "that meets the international market standards." In parallel, it physically moved more than 27 tonnes of gold from the U.S. and Canada to Zeist in the Netherlands, while simultaneously transferring a similar amount of gold from Zeist to London in order 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 central bank said.

DNB added that the operation also functioned as preparation for a crisis. "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."

Reserves and Storage Distribution

The Netherlands holds 612.4 tonnes of gold in its reserves. Following the operation, the DNB said about 18 percent of its gold remains in the U.S., with another 18 percent stored in Canada. Thirty-two percent of the country's gold reserves are now stored in London, while 31 percent is held within the Netherlands' own borders.

The DNB's statement makes clear that concerns about access to the gold were a primary driver of the relocation.

"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," the central bank said.

London's appeal in this respect is structural: the city hosts the world's largest over-the-counter gold market, and bars conforming to the London Good Delivery standard can be settled and traded without reprocessing—a practical advantage for a central bank prioritizing liquidity under stress.

A Broader Trend of Distrust

Notably, countries with historically friendly relations with Washington—including the Netherlands—are beginning to view 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 its own gold repatriation project earlier this year. The Banque de France (BdF) unloaded "non-standard" gold bars of varying purity and size that had been stored in New York, using the proceeds to purchase new bars meeting international reserve standards for weight, purity, and certification—analogous to exchanging "junk silver" for pure .999 silver coins. The upgraded gold remains within French borders.

At the time, Metals Focus senior analyst Junlu Liang said these movements show how central banks are reassessing gold's role in reserve management. "In some countries, domestic political considerations have further strengthened calls to relocate gold holdings closer to home," Liang said.

Calls for repatriation have also come from German politicians spanning the political spectrum. The Bundesbank brought half of its gold home in 2013, moving 674 tonnes from Paris and New York back to Germany, though it still stores roughly 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 is "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," Mönch said.

India's Repatriation Drive

India is another country aggressively bringing its gold home. In the spring of 2024, the Reserve Bank of India repatriated 100 tonnes of gold from vaults in the UK, and over the last six months the central bank has repatriated another 104 tonnes.

Based on data from the Management of Foreign Exchange Reserves, India now holds about 680 tonnes of its 880.52-tonne gold reserves (77 percent) within its own 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 U.S. dollar is one of the key factors driving gold repatriation—specifically the aggressive sanctions levied on Russia after its invasion of 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," the Economic Times reported.

Shifting Vaulting Preferences

According to a World Gold Council survey, the Bank of England remains the most popular overseas vaulting location, with 57 percent of surveyed central banks indicating they hold some gold in the UK—down from 64 percent last year. Domestic vaulting ranked second, with 49 percent expressing it as their preference. The number of banks vaulting at least some gold in New York also declined, falling from 17 percent last year to 14 percent before the Netherlands removed some of its gold. How these preferences shift further—particularly whether more European central banks follow the Dutch, French, and Indian examples—will be visible in future reserve disclosures and survey data.