Germany reconsiders storing gold in US

For decades, Germany has stored its gold reserves in the vaults of the US Federal Reserve. However, Oilprice.com reports that growing political uncertainty in Washington has prompted some German lawmakers to reconsider the security of these holdings.

Germany maintains the world's second-largest gold reserves, surpassed only by the United States. About 37% of Germany's gold bullion (1,236 tons) lies deep beneath the streets of Manhattan stored with Federal Reserve. Historically, this arrangement was considered a prudent safeguard, providing Germany with immediate access to dollar liquidity during potential crises.

However, Berlin officials are now reassessing this long-standing policy. The rationale for storing Germany's gold reserves in New York is facing renewed scrutiny. Marco Wanderwitz, a former Bundestag member, has consistently questioned the wisdom of keeping such substantial gold holdings overseas. As early as 2012, he unsuccessfully attempted to personally verify the bullion's presence in the Federal Reserve vaults.

However, the Bundesbank remains calm and rejects all insinuations of risk. Bundesbank President Joachim Nagel has complete confidence in his colleagues from the Fed.