Germany and Italy Face Mounting Pressure to Repatriate Billions in U.S.-Held Gold

Political pressure is growing in both Germany and Italy to repatriate a significant portion of their gold reserves—worth more than $245 billion at current market value—from the vaults of the Federal Reserve Bank of New York, where they have been stored for decades. Amid escalating geopolitical tensions and waning confidence in the stability of the global financial system, these calls reflect a broader trend toward monetary sovereignty and reducing reliance on U.S. institutions.

Massive Reserves Stored Abroad

Germany, the world's second-largest holder of gold after the United States, maintains 3,352 tonnes of gold reserves, around 37% of which are still held in New York. Italy, ranked third globally, holds 2,452 tonnes, with more than a third similarly stored on U.S. soil.

Fears of Political Risk and U.S. Leverage

The push for repatriation comes amid growing concern among some European policymakers that gold held overseas could be weaponized—used as a financial tool or diplomatic lever—particularly if Donald Trump returns to the White House. His previous tenure raised fears of unilateral decision-making that could undermine the Federal Reserve’s independence or impact sovereign transactions.

Many analysts argue that under current global conditions, physical gold should remain within the reach of the owning nations, especially as a crisis asset or emergency reserve, and that decades-old institutional trust in foreign custodians may no longer be sufficient.

Germany’s Precedent and Strategic Diversification

These concerns are not entirely new. Between 2013 and 2017, Germany repatriated 674 tonnes of gold from Paris and New York to Frankfurt, in a move that cost around €7 million. The operation was framed as a strategic step toward a more balanced distribution of reserves across domestic and international storage facilities.

Despite this, the Bundesbank has continued to express confidence in its foreign partners, stressing that gold storage decisions are based on liquidity, accessibility, and security considerations, not politics.

Italy Remains Silent as Pressure Builds

In contrast, the Italian government has remained silent. Neither the Bank of Italy nor the Prime Minister’s Office has issued any statement in response to the growing calls for repatriation of Italian gold from the U.S.

Public Sentiment and Strategic Anxiety

Meanwhile, the issue has ignited considerable debate across social media and economic forums. Many European citizens voiced unease over what they see as excessive dependence on the United States. One commenter remarked, “Germany would be foolish not to bring its gold back immediately,” while another warned, “The U.S. could simply say no—and then what?”

These reactions reveal a deeper anxiety about the vulnerability of sovereign assets stored beyond national borders, particularly in an era of global volatility and shifting power dynamics.

A Sovereign Debate in an Age of Financial Uncertainty

What was once a technical matter of reserve management is fast becoming a national sovereignty issue. Lawmakers and economists are increasingly calling for the return of European gold reserves to their home countries. While central banks continue to cling to traditional doctrines of institutional trust, the rising tide of public and political pressure underscores a growing shift in mindset—one that places economic self-reliance and control at the heart of the post-globalization financial order.