Germany's Gold Hoard: A Risky Investment Under Trump?
As tensions between the US and Europe escalate under President Donald Trump, Germany is being urged to withdraw its vast gold reserves from US vaults. The country holds approximately €164 billion (£122 billion) worth of gold, the second-largest in the world after the US, with over 1,200 tonnes stored in New York.
Economists like Emanuel Mönch, a former head of research at Germany's federal bank, the Bundesbank, are warning that storing this amount of gold in the US is too risky given Trump's unpredictable nature. "Given the current geopolitical situation, it seems risky to store so much gold in the US," Mönch told the financial newspaper Handelsblatt. "In the interest of greater strategic independence from the US, the Bundesbank would therefore be well advised to consider repatriating the gold."
This sentiment is shared by Michael Jäger, head of the European Taxpayers Association and the Association of German Taxpayers, who believes that Trump's desire to generate revenue could pose a threat to the safety of Germany's gold reserves. "Trump is unpredictable and he does everything to generate revenue," Jäger said in an interview with the Rheinische Post. "What happens if the Greenland provocation continues? The risk is increasing that the German Bundesbank will no longer be able to access its gold. Therefore, it should repatriate its reserves."
The issue of Germany's gold reserves has gained traction beyond the far-right Alternative für Deutschland party, which has long advocated for the return of the gold. Even moderate voices within the Greens and Social Democratic parties are now speaking out in favour of relocation.
However, not everyone is convinced that withdrawing the gold would be a good idea. Clemens Fuest, president of the Institute for Economic Research (Ifo), warns that such a move could lead to unintended consequences and "only pour oil on the fire of the current situation."
Despite these concerns, Germany's total gold reserves are worth almost €450 billion, with over half held at the Bundesbank in Frankfurt am Main. The country has been auditing its gold supplies regularly, and the Bundesbank president, Joachim Nagel, recently assured that there is "no cause for concern" over the German gold held at the US Federal Reserve.
As Trump's rhetoric continues to harden towards his western partners, Germany is facing a difficult decision. Will it heed the warnings of economists and take steps to repatriate its gold reserves, or stick with the status quo? The answer will have significant implications for Germany's financial independence and its relationship with the US.
As tensions between the US and Europe escalate under President Donald Trump, Germany is being urged to withdraw its vast gold reserves from US vaults. The country holds approximately €164 billion (£122 billion) worth of gold, the second-largest in the world after the US, with over 1,200 tonnes stored in New York.
Economists like Emanuel Mönch, a former head of research at Germany's federal bank, the Bundesbank, are warning that storing this amount of gold in the US is too risky given Trump's unpredictable nature. "Given the current geopolitical situation, it seems risky to store so much gold in the US," Mönch told the financial newspaper Handelsblatt. "In the interest of greater strategic independence from the US, the Bundesbank would therefore be well advised to consider repatriating the gold."
This sentiment is shared by Michael Jäger, head of the European Taxpayers Association and the Association of German Taxpayers, who believes that Trump's desire to generate revenue could pose a threat to the safety of Germany's gold reserves. "Trump is unpredictable and he does everything to generate revenue," Jäger said in an interview with the Rheinische Post. "What happens if the Greenland provocation continues? The risk is increasing that the German Bundesbank will no longer be able to access its gold. Therefore, it should repatriate its reserves."
The issue of Germany's gold reserves has gained traction beyond the far-right Alternative für Deutschland party, which has long advocated for the return of the gold. Even moderate voices within the Greens and Social Democratic parties are now speaking out in favour of relocation.
However, not everyone is convinced that withdrawing the gold would be a good idea. Clemens Fuest, president of the Institute for Economic Research (Ifo), warns that such a move could lead to unintended consequences and "only pour oil on the fire of the current situation."
Despite these concerns, Germany's total gold reserves are worth almost €450 billion, with over half held at the Bundesbank in Frankfurt am Main. The country has been auditing its gold supplies regularly, and the Bundesbank president, Joachim Nagel, recently assured that there is "no cause for concern" over the German gold held at the US Federal Reserve.
As Trump's rhetoric continues to harden towards his western partners, Germany is facing a difficult decision. Will it heed the warnings of economists and take steps to repatriate its gold reserves, or stick with the status quo? The answer will have significant implications for Germany's financial independence and its relationship with the US.
i mean can we blame em tho? trump is all about gettin that dough no matter what 
but germany wants to keep their gold safe and sound, ya feel me? it's like they're thinkin "hey, we got our own money, why do we need to store ours with some unpredictable dude" 
but at the same time, if germany pulls their gold out it could get all messy and diplomatic 
like trump's tweetstorm or something
especially after all the drama with the greensland provocation 
I think Germany should be careful about storing so much gold in the US vaults 
, but it's also possible that they'll just have to deal with it 
.
. On one hand, storing the gold in the US could provide a hedge against market fluctuations or economic instability 
.
. What's the worst that could happen? The US decides to sell it and uses the money for, like, roads or something 
? I don't think so 
? And what about all the audits and whatnot...I'm sure it's not that hard to keep track of a few million tonnes of gold 
It's not like Trump's going to blow up the place or anything 
️. Or maybe I'm just being too laid back 
...what do you guys think?!
. Maybe it's time for Germany to take care of its own gold stash, ya know? 
germany has been storing all that gold in the us vaults like it's a safe haven but what if trump decides to take it all 
Emanuel Mönch is literally saying that storing that much gold in the us is too risky under trump's leadership and i can totes see why... i mean, who wants their country's gold reserves at risk? 
its like, come on guys! why are you even considering keeping your gold in the us when trump is making all these crazy moves?
he's got a track record of doing random stuff that's, like, super unpredictable...like that time he tweeted about getting sick from pizza 
it's not like they're gonna get any special treatment or anything 
. I guess its all about weighing the risks and the pros and cons 
. Maybe Germany should just keep an eye on things and be prepared for whatever happens? 
.
I was just thinking about this weird dream I had last night where I was a baker and I had to make 1000 croissants in one hour 
. If Germany were to pull out of US vaults, it could get complicated with trade and diplomatic relations 
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. It's not just about safety, but also about having more control over their financial future 