Central banks are taking a fresh look at where they keep their gold as geopolitical tensions, trade disputes and economic uncertainty reshape the way countries manage their reserve assets. The Netherlands became the latest country to adjust its gold-storage strategy after its central bank shifted around 86 tonnes of gold from vaults in the United States and Canada to London. De Nederlandsche Bank (DNB) said the move was intended to make the reserves “better prepared for severe crises”.
The tonnes were moved between March and August this year, with the Dutch central bank saying the relocation took place “in view of increasing geopolitical unrest”. The gold is now stored at the Bank of England, where it can be accessed more readily if required.
The move has inevitably raised questions over whether central banks expect a major financial or economic shock. However, officials and market experts suggest the decision is more about improving preparedness than predicting an imminent crisis.
The Netherlands is not alone in reconsidering overseas .
France earlier this year announced that it had brought its gold reserves back from the United States. Germany has also previously reduced the amount of gold held abroad. Its Bundesbank transferred more than 216 tonnes from New York and Paris, including 111 tonnes from New York and 105 tonnes from Paris, as part of a process completed in 2016.
Such decisions have historical precedent. Goldman Sachs research analysts Lina Thomas and Daan Struyven noted that gold-storage strategies have changed according to the prevailing geopolitical environment, as per a BBC report.
“Some European central banks moved part of their gold holdings to New York during the Cold War,” said research analysts from Goldman Sachs.
Why London Is Emerging As A Preferred Gold Hub
The Netherlands’ decision to move gold to London reflects the city’s importance in the global bullion market. Experts believe that the central bank was not expecting to use the reserves in an emergency but wanted to improve its ability to respond if circumstances deteriorated.
London offers a major advantage because of its deep and highly developed gold market. The Bank of England is among the world’s largest gold custodians, with roughly 400,000 bars valued at more than £200 billion stored in its underground vaults.
According to World Gold Council industry surveys, the Bank of England remains the most popular location for central-bank gold storage. At the same time, reserve managers are increasingly examining whether their holdings should be distributed across multiple locations.
Where countries store their bullion is becoming “increasingly top of mind for reserve managers”, according to Thomas and Struyven of Goldman Sachs.
Central Banks Are Buying More Gold
The growing debate over storage locations is closely tied to a wider shift in central-bank reserve management: countries have been accumulating substantially more gold. According to the World Gold Council, central banks have purchased an average of around 1,000 tonnes annually over the past four years. That compares with an average of approximately 500 tonnes a year during the preceding decade.
The stronger appetite for bullion can be traced back to the global financial crisis and has continued as governments seek assets that can provide diversification during periods of financial stress.
Holding large quantities domestically, however, comes with additional costs. Goldman Sachs analysts said maintaining gold at home requires significant spending on security, auditing systems and insurance.
“Domestic storage requires investment in physical security, audit infrastructure, and insurance; costs that can be disproportionate for smaller central banks,” they said.
That creates a balancing act for reserve managers: keeping gold closer to home can improve control and accessibility, while overseas storage can provide access to established financial centres and specialised infrastructure.
Record Gold Prices Add To Central-Bank Demand
The debate over gold storage comes at a time when the metal has become comparatively more valuable. Gold prices have climbed to a series of record levels in recent years, crossing the $5,000-per-ounce threshold in January. Although prices have subsequently eased from that peak, bullion remains historically expensive.
Gold’s appeal during periods of inflation, economic uncertainty and geopolitical instability remains a major part of its attractiveness to investors and central banks alike.
Goldman Sachs researchers expect prices to remain elevated. They forecast the metal reaching $4,900 (£3,624) per troy ounce by the end of 2026, around $300 above its August level.
For central banks, rising prices create another incentive to manage bullion strategically. The growing demand from official institutions is itself one of the factors supporting the metal’s elevated valuation, according to Thomas and Struyven.