Germany Finishes Gold Bar Repatriation Ahead of Schedule
The German government finished its planned repatriation of gold holdings by transferring the last bars held at the Banque de France in Paris back to Germany. The German government’s plan was to hold at least 50% of its gold within Germany, a task which has now been completed through transfers from New York and Paris. Those gold holdings are now in Frankfurt, securely stored underneath the Bundesbank’s headquarters. Each of the bars that recently arrived was tested upon arrival to confirm authenticity. The Bundesbank refused to provide details on the exact means by which the latest shipment of gold was repatriated.
Germany remains one of the world’s largest government holders of gold, with nearly 3,400 tonnes in storage. Now that 50% of its gold is back in Germany, roughly one-eighth of its holdings remain with the Bank of England in London and the rest is stored in the Federal Reserve Bank of New York’s gold vault.
Germany’s foreign holdings of gold arose from a desire to keep its gold safe in the event of a Soviet invasion during the Cold War. The end of the Cold War and the adoption of the euro by both France and Germany obviated the need for so much gold to be held abroad, especially in France. Despite the fact that significant amounts of German gold remain overseas, the German government sees no future plans to repatriate any further gold reserves.