The way nations manage their wealth is undergoing a period of rapid modernization, and Germany’s gold is no exception. Critics of the current system argue that the Cold War-era policy of storing gold in New York is outdated and out of sync with the 21st century. The push for repatriation is being framed as a necessary “software update” for the nation’s financial security strategy.
Germany’s gold holdings are a massive €450 billion pillar of its economy, with €164 billion currently held in the United States. Advocates for change argue that the original reasons for this arrangement—protection from Soviet aggression—are no longer valid. They believe that a modern, independent Germany should house its reserves within its own borders.
Emanuel Mönch has highlighted the inefficiencies of the current system, suggesting that the logistical hurdles of overseas storage are an unnecessary burden. He argues that bringing the 1,236 tonnes of gold back would simplify the Bundesbank’s operations and provide greater strategic flexibility. For Mönch, this is about aligning Germany’s physical assets with its modern economic goals.
This perspective is particularly popular among younger economists who view the current arrangement as a historical relic. They argue that the world has moved from a bipolar to a multipolar order, and Germany’s storage strategy should reflect that change. The goal is to create a more streamlined, transparent, and domestically-focused reserve system.
Despite the logic of modernization, the German government remains cautious about disrupting long-standing international agreements. They argue that the current system provides essential links to global markets and that the New York Fed remains a world-class custodian. For now, the administration seems content with the “legacy” system, even as the calls for an upgrade grow louder.