Germany is once again raising questions about the safety of its gold reserves stored abroad, particularly the large share held at the Federal Reserve Bank of New York. With over 3,351 tonnes of gold, Germany is the second-largest holder of gold reserves in the world—trailing only the United States. Historically, much of this gold was stored overseas as a legacy of the Cold War and post-World War II arrangements. But today, a growing number of German conservatives are asking: is the gold still there, and should it all be brought home?

This renewed scrutiny is rooted in both economic and geopolitical anxieties. As of 2022, roughly 37% of Germany’s gold remains in New York, equating to over €100 billion in value. While the Bundesbank has worked to repatriate a portion of the reserves over the past decade, critics argue that relying on foreign powers—especially in uncertain political climates—poses a national risk. “We don’t audit what we can’t see,” a senior member of the conservative CDU party remarked recently, sparking fresh calls for Germany to retrieve its remaining gold.

The concern isn’t just German. Other European nations also store gold overseas, particularly in the U.S. and U.K. Italy holds approximately 2,452 tonnes of gold, France has 2,437 tonnes, and the Netherlands and Switzerland maintain significant reserves as well. If all these nations were to collectively demand their gold back, the economic and symbolic impact would be substantial. Such a move could shake confidence in the U.S. Federal Reserve and trigger questions about the credibility of U.S. custody over international assets.

From a financial markets perspective, a large-scale European gold repatriation could create a ripple effect. Investors may interpret it as a signal of declining trust in the dollar and the U.S. financial system. This could put downward pressure on the dollar and increase volatility in gold markets. Central banks might also face logistical challenges in securely transporting and storing the massive volumes of gold domestically. However, proponents of repatriation argue that these costs are worth the added security and sovereignty over national wealth.

Ultimately, this debate is about more than just bullion bars. It touches on the heart of Europe’s long-term financial independence, especially as the global power balance shifts and economic blocs redefine their alliances. If Europe continues down the path of reclaiming its gold, it could accelerate discussions about forming a more robust, euro-based financial system—one that’s less reliant on U.S. institutions. Whether these warnings will lead to action remains to be seen, but the conversation is picking up momentum across the continent.