• Home
• News

The Dutch central bank, De Nederlandsche Bank (DNB), has transferred more than 78 tonnes of gold reserves from New York to London in a politically sensitive repositioning driven by escalating transatlantic geopolitical frictions, according to a report by the Financial Times.

The redeployment follows growing pressure from European politicians and taxpayer advocacy groups urging the repatriation of sovereign bullion stored in the United States, citing concerns over jurisdictional risk and potential asset freezes under shifting US trade and foreign policy. DNB stated that the transfer aims to bolster "crisis preparedness" by diversifying sovereign reserves across distinct legal jurisdictions.

Enhancing Market Liquidity in London

Olaf Sleijpen, an Executive Board member of DNB, emphasized that the primary operational objective was to improve the immediate tradability of the state's gold holdings. London represents the world’s deepest marketplace for physical gold, clearing over $900 billion in physical bullion transactions weekly.

Trading Standards: DNB noted that bullion held at the Bank of England aligns with modern London Good Delivery standards, offering faster liquidity mobilization during market crises than holdings on separate continents.

Arbitrage Execution: DNB holds 612 tonnes in total reserves. Rather than physically transporting all 85 tonnes relocated from North America (78 tonnes from New York and 7 tonnes from Ottawa), the bank physically shipped only 27 tonnes. The remainder was liquidated on North American exchanges and concurrently repurchased as newly assayed bars in London.

European Central Bank Gold Repatriation Strategies

Central BankReserve ActionExecution Method / Current Positioning

Netherlands (DNB)Relocated 78+ tonnes from NY, 7 tonnes from OttawaShipped 27 tonnes physically; rebalanced remaining volume via London purchases to optimize market access. Total holdings: 612 tonnes.

France (Banque de France)Repatriated all NY Fed holdings (July 2025 – Jan 2026)Utilized a similar sell-and-repurchase mechanism in Europe, generating a net profit of €11 billion.

Germany (Deutsche Bundesbank)Retains ~one-third of reserves in New YorkRepatriated 674 tonnes to Frankfurt between 2013 and 2017. Bundesbank Chief Joachim Nagel maintains full confidence in NY Fed custody.

Gold's Ascendance as the Premier Reserve Asset

The Dutch transfer comes amid a sustained rally in bullion markets, with spot gold rising 25% over the past twelve months to approximately $4,364 per ounce.

According to European Central Bank (ECB) data, gold surpassed US Treasuries last year to become the single largest global reserve asset held by central banks. While Germany's Joachim Nagel reaffirmed that the Federal Reserve remains a secure custodian, increasing numbers of European monetary authorities are actively recalibrating physical vault locations closer to domestic financial centers to mitigate cross-border exposure.