Gold is supposed to be the ultimate safe haven. But as geopolitical uncertainty rises, European central banks are rethinking where they keep their most trusted reserve asset. After France and Germany, Netherlands became the latest to make an exit, shifting part of its gold holdings from North America to London.The relocation has raised concerns about whether central banks are bracing for a major economic shock.Experts, however, say that the move is less about predicting a crisis and more about preparing for an increasingly uncertain world, where geopolitical tensions, trade wars, inflation and interest rates are reshaping how countries manage their reserves.
Why the Netherlands shifted its gold
Between March and August, De Nederlandsche Bank (DNB) relocated 86 tonnes of the roughly 313 tonnes it held in the US and Canada to the Bank of England vaults in London. According to DNB, the move was made “in view of increasing geopolitical unrest” so that the gold could be “readily available for use in a crisis situation”.Governor Olaf Sleijpen, as cited by BBC, said that it was “necessary to strengthen our resilience and preparedness.” The move comes amid trade disputes and military conflicts, including an ongoing trade dispute between the US and Canada, with both countries announcing fresh tariffs after failed trade talks.The US economy also remains uncertain due to its ongoing war with Iran, which has affected global trade.
Relocation to London
London was chosen because it is a major global trading centre.DNB regards gold held with the Bank of England as the world’s most easily tradable gold, making it more readily available in a crisis than gold stored in the US or Canada.The Bank of England is one of the world’s largest gold custodians. Its vaults beneath the 300-year-old institution in central London hold about 400,000 gold bars worth more than £200 billion.World Gold Council industry surveys show the Bank of England remains the most popular vaulting location, although central banks are increasingly diversifying where they store gold.Goldman Sachs research analysts Lina Thomas and Daan Struyven told the BBC that London is increasingly becoming a top choice for reserve managers looking for a place to store their countries’ gold.The Dutch move has changed DNB’s reserve distribution. Before the transfer, 31.3% of its gold was held in New York and 19.7% in Ottawa. Both shares have now fallen to 18.5%. London’s share has risen from 18.1% to 32.1%, while 30.8% remains in the Netherlands.DNB had a total gold stock of 612.4 tonnes at the end of 2025, valued at €72.2 billion.
Not all the gold was physically moved
The relocation combined physical transfers with gold transactions.DNB sold about 59 tonnes in New York and bought an equivalent amount in London, meaning this portion did not have to be transported across the Atlantic.More than 27 tonnes were physically transferred from the US and Canada to the Dutch town of Zeist. A similar quantity was then moved from Zeist to London. The gold bars did not need to be melted down.DNB said, “Combining the processes of buying and selling and physical transport has allowed DNB to spread the risks associated with such a complex physical gold relocation.”The exact transport method has not been disclosed. Companies involved keep their methods confidential, while extensive security measures and planning are needed to move such quantities safely.
Central banks are buying more gold
The Netherlands’ decision comes as central banks increase gold purchases. Over the past four years, they have accumulated an annual average of 1,000 tonnes, according to the World Gold Council, compared with 500 tonnes a year over the preceding decade. The increase has continued since the global financial crisis and is expected to rise further over the next year.Storing gold domestically also comes with costs. Thomas and Struyven said, “Domestic storage requires investment in physical security, audit infrastructure, and insurance; costs that can be disproportionate for smaller central banks.”France also moved gold from New York to Europe earlier this year, but for a different reason. The Banque de France said 129 tonnes of gold held in New York did not meet the London Bullion Market Association’s 99.99% purity standard. Rather than transport the bars to France and have them remelted, the bank sold them and bought an equivalent amount of gold in Europe.The transaction generated an exceptional capital gain of €11 billion in 2025, according to the Banque de France. France’s total gold reserves, however, remained unchanged at 2,437 tonnes.The central bank said it has followed a policy since 2005 of bringing its gold reserves in line with prevailing market standards.Germany’s Bundesbank transferred more than 216 tonnes from storage abroad over several years ending in 2016, including 111 tonnes from New York and 105 tonnes from Paris.The practice is not new. “Some European central banks moved part of their gold holdings to New York during the Cold War,” Thomas and Struyven told BBC.
