Discussion on Withdrawing 1,200 Tons of Gold Bars from New York
Related to Trump's Administration's Neglect of Europe
Germany's next government is reportedly considering withdrawing its gold bars stored in an underground vault in New York, USA.
On the 4th (local time), the British daily The Telegraph reported that senior officials of the Christian Democratic Union (CDU), a member of Germany's next ruling coalition, are discussing plans to withdraw Germany's gold bars in New York due to concerns that the United States is no longer a reliable partner following the inauguration of Donald Trump's second term administration.
Marco Wanderwitz, a former member of the Bundestag from the CDU, confirmed the discussion through the German tabloid Bild, stating, "The issue has resurfaced," confirming that the talks are indeed taking place.
Germany is the world's second-largest holder of gold after the United States. After the end of World War II, Germany rebuilt its economy based on the Marshall Plan, the U.S. European recovery program, significantly increasing exports and accumulating a large trade surplus. The surplus was converted into gold under the Bretton Woods system.
Currently, Germany stores about 1,200 tons of gold in the underground vault of the Federal Reserve Bank in Manhattan, New York. In monetary terms, this amounts to approximately 113 billion euros (about 181 trillion Korean won). This is estimated to be about 30% of Germany's total gold holdings worldwide.
Germany's next government considering withdrawing its gold bars from the United States is interpreted as related to the Trump administration's seemingly hostile stance toward Europe in economic and diplomatic matters. Since the start of the Trump administration, the U.S. has imposed high tariffs on European allies and has neglected security issues.
Until now, storing gold in U.S. vaults was considered a convenient way to quickly secure dollars during economic recessions, but the situation has changed with the conflicts between the Trump second-term administration and European countries.
Michael Jaeger of the European Taxpayers Association said, "It would be better for the German central bank to move all German gold bars in the U.S. to Frankfurt, where the German central bank is located, as soon as possible, or at least to Europe."
However, the German central bank stated, "There is absolutely no doubt that the Federal Reserve Bank of New York is a reliable partner in storing gold bars."
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