In brief
European central banks are relocating gold reserves from North America to London’s vaults to enhance resilience amid rising geopolitical tensions. The Dutch moved 86 tonnes to London in March‑August, while France and Germany have also shifted holdings. Analysts note the move is not a sign of imminent crisis but a strategic effort to improve liquidity, diversify risk, and cut storage costs. With gold prices hitting record highs, central banks are buying more bullion, further supporting price momentum.
When the Dutch central bank announced this week that it had transferred 86 tonnes of its gold out of North America, officials said the move would make the country "better prepared for severe crises." The bullion was relocated from the US and Canada to London’s Bank of England vaults, where it can be accessed quickly if a crisis occurs.
The Dutch move follows similar actions by France, which recently withdrew its reserves from the US, and Germany, which transferred over 200 tonnes from New York and Paris. Such re‑organization reflects a broader trend of central banks diversifying where they store precious metals, a practice that dates back to the Cold War.
"We expect that we will never need to use them, but we do need to strengthen our resilience and preparedness," said Olaf Sleijpen, governor of the Dutch central bank.
London is seen as the optimal hub because it is a major trading centre where gold can be bought and sold swiftly. The Bank of England is the world’s largest custodian of gold, holding around 400,000 bars worth over £200 bn beneath its historic building.
Gold has surged in recent years, with prices hitting record highs of over £5,000 per ounce in early 2026. The commodity remains a coveted safe‑haven asset, particularly as inflation and geopolitical unrest constrain other markets.
Central banks have increased their annual gold accumulation to the average of 1,000 tonnes in the last four years – a rise from 500 tonnes the previous decade – according to the World Gold Council. The creation of a French and Dutch precedent signals a shift in reserve management toward more diversified storage and lower security costs.
Experts suggest that the trend will continue as the price of gold remains high and central banks look for assets that can serve as a hedge against inflation and uncertain financial conditions.
