Germany, Italy Face Pressure to Repatriate US$245 Billion in Gold as Trust in US Custody Wavers
The comments below are an edited and abridged synopsis of an article by Giann Liguid, Investing News Network
Germany and Italy are under mounting pressure to begin repatriating foreign gold reserves held abroad, particularly those stored at the US Federal Reserve in New York. Together, these nations control the second- and third-largest gold holdings in the world, surpassed only by the US. Currently, more than one-third of their reserves—valued at an estimated US$245 billion—are kept in foreign vaults, igniting new debate over national control, transparency, and security.
The longstanding rationale for storing gold abroad was grounded in postwar economics and New York’s dominance in global gold trade. However, recent political developments, including former US President Donald Trump’s increasing influence over US institutions, have prompted officials across Europe to advocate for repatriating foreign gold reserves. Fabio De Masi, a former MEP affiliated with Germany’s new BSW party, and Michael Jäger of the Taxpayers Association of Europe, both support bringing bullion back home to ensure sovereignty over national assets.
Similar views are gaining ground in Italy. Enrico Grazzini, a respected economic analyst, voiced concern over the 43% of Italy’s gold still held in the US, calling it a serious risk under what he described as an “unreliable” administration. These warnings gained momentum ahead of Italian Prime Minister Giorgia Meloni’s recent Washington visit, though her government has yet to revive its earlier push for gold repatriation.
Concerns are not just theoretical. Trump’s recent comments about the US Federal Reserve and lower interest rates have rattled financial observers. His attempts to politicize supposedly independent institutions have reinforced European fears of diminished control over national assets. Advocates for repatriating foreign gold reserves argue that domestic custody offers greater accountability and financial autonomy.
This is not an entirely new movement. Between 2013 and 2017, Germany repatriated 674 metric tons of gold from New York and Paris following a grassroots campaign. Although costly, the move restored public confidence. By 2020, half of Germany’s reserves were held domestically, yet 37% remain in US vaults.
A broader trend is taking shape. According to the World Gold Council’s 2025 survey, 59% of central banks now hold some or all gold reserves domestically—up significantly from 41% the previous year. Meanwhile, only 7% of respondents had planned domestic storage in 2024, highlighting a sharp rise in support for repatriating foreign gold reserves.
Further complicating matters is a proposed US House Bill (HB 3795) calling for the first full audit of American gold holdings in over 60 years. The bill, championed by Representative Thomas Massie, aims to inventory and assess US gold at Fort Knox, West Point, and the Denver Mint. Critics argue previous checks focused on containers—not the actual gold.
Jp Cortez of the Sound Money Defense League underscores that clarity is urgently needed. Questions persist not only about the presence of the gold, but also its purity, ownership, and potential entanglements—adding urgency to the European push for repatriating foreign gold reserves.
As global financial systems grow more politicized and less transparent, Germany and Italy’s move to reevaluate custodial arrangements reflects a larger shift: one that prioritizes sovereignty, trust, and tangible control in a time of growing uncertainty.