Germany and Italy face increasing pressure to repatriate roughly $245 billion in gold that is currently stored in vaults at the U.S. Federal Reserve.
Concerns have grown among European politicians and taxpayer advocacy groups after public criticisms of the Federal Reserve by President Trump. These critics worry that a tense political relationship could put foreign-held assets at risk or at least create uncertainty about their safety and access.
As it stands, a significant portion of both countries’ reserves is held in New York: Germany keeps about 1,200 tonnes there—approximately one-third of its total reserves—while Italy stores roughly 43% of its gold in the same facility. The concentration of such large amounts of foreign gold inside a single foreign jurisdiction has prompted debate about whether those holdings should be returned home.
Supporters of repatriation argue that bringing the bullion back would strengthen national financial sovereignty and reduce political and operational risk. They point out that holding reserves domestically provides direct control over physical assets and reassures citizens that their nation’s wealth is readily available in a crisis.
Opponents caution that moving large quantities of gold is costly, complex and potentially risky in its own right. Transporting tonnes of bullion requires heavy security, insurance and precise logistical coordination. There is also the question of whether domestic vaults can match the security standards and liquidity services provided by established central bank repositories such as the Federal Reserve.
Financial authorities must weigh several factors when considering repatriation: the cost of relocation, the capacity of domestic storage, the diplomatic and legal implications of withdrawing assets from a foreign central bank, and the potential impact on market perceptions. For some policy makers, a mixed approach—retaining some reserves abroad while increasing domestic holdings—may offer a pragmatic balance between security and diversification.
The debate over where to store sovereign gold highlights broader questions about how central banks manage reserves in an increasingly politicized international environment. Whether countries decide to keep bullion abroad or bring it home, the underlying goal remains the same: protecting national wealth while ensuring access, liquidity and confidence for taxpayers and markets alike. Any decision will likely involve careful consultation among finance ministries, central banks and security experts to ensure transparency and minimize risk.