The rise of protectionist “America First” policies in the United States has forced a major rethink of Germany’s gold storage strategy. As the U.S. becomes more focused on its own national interests, German economists are wondering if the New York Fed is still the neutral custodian it once was. This concern is driving a powerful movement to repatriate the €164 billion in German gold currently held in the U.S.
Germany’s gold reserves, worth nearly €450 billion, are a vital part of its economic sovereignty. With 1,236 tonnes stored in New York, the relationship between Berlin and Washington is literally worth billions. However, as trade tensions and diplomatic friction increase, many in Germany feel that keeping so much wealth in a foreign vault is an unacceptable vulnerability.
Emanuel Mönch has pointed out that “America First” isn’t just a slogan; it’s a fundamental shift in U.S. policy that could have real-world consequences for foreign assets. He suggests that if the U.S. were to face a major economic crisis, it might prioritize its own stability over the legal claims of foreign nations. Repatriation, he argues, is the only logical response to this new reality.
This sentiment is shared by a growing number of German politicians who believe the country needs to be more self-reliant. They argue that the era of total trust in international institutions is over and that Germany must take direct control of its most important resources. The gold in New York is seen as a prime example of a dependency that needs to be ended.
In response, the German government has attempted to downplay the risks. Officials argue that the U.S. remains a committed ally and that the legal protections for Germany’s gold are ironclad. They warn that a sudden move to bring all the gold home could damage relations with Washington at a delicate time, suggesting a more cautious and diplomatic approach.