Spain is facing a choice many central banks have already made: keep some gold abroad for liquidity—or bring it home to guard against geopolitical risk. Money Metals News Service reports growing calls for Madrid to repatriate any Spanish gold still held in the United States, even as the Bank of Spain declines to say how much sits in New York or whether a move is planned.
Spain keeps quiet, pressure builds
Money Metals reports the Bank of Spain holds roughly 289 tonnes of gold, the sixth-largest reserve among EU countries. According to El País, the central bank refused to disclose how much, if any, is in New York, citing confidentiality. El País, citing anonymous sources, also reported that most of Spain’s gold is already within Spanish borders and that any U.S.-held portion is likely small.
El País quoted Instituto de Estudios Bursátiles professor Luis Garvía arguing that repatriation would fit the European Union’s “strategic autonomy” framework, not a nationalist posture.
Allies move their bullion
Per Money Metals, the Netherlands recently shifted 86 tonnes of gold from North America to London, citing “increasing geopolitical unrest” and a desire to “strengthen crisis preparedness.” Money Metals also reports that France completed a repatriation project earlier this year, with the Banque de France selling “non-standard” bars stored in New York and using the proceeds to buy bars meeting international reserve standards.
Why central banks are pulling back
El País linked the repatriation push to the “weaponization of the dollar” and to fears of asset freezes or confiscation, pointing to sanctions after Russia’s 2022 invasion of Ukraine. The outlet wrote that concern “is not only the distrust aroused by U.S. President Donald Trump,” adding that the freezing of Russian assets “set off alarm bells in nonaligned countries.”
India is also repatriating aggressively. Money Metals, citing the Economic Times of India, reports the Reserve Bank of India brought home 100 tonnes in spring 2024 and another 104 tonnes over the following six months. The Economic Times of India attributed the shift in part to episodes where G7 countries restricted access to sovereign assets, noting, “Those episodes … have reshaped how central banks think about custody.”
Germany and Italy reopen the debate
Money Metals reports that German politicians across the spectrum have renewed calls to bring more bullion home. Germany’s Bundesbank moved 674 tonnes from Paris and New York to Germany in 2013 and still stores about one-third of its gold in New York, according to the same report. Earlier this year, economist Emanuel Mönch—a former Bundesbank head of research—called it “too risky” to keep reserves in New York, arguing, “Given the current geopolitical situation, it seems risky to store so much gold in the U.S.” Money Metals also notes similar repatriation calls in Italy.
London and New York: liquidity vs. control
While the Netherlands moved metal to London for proximity and liquidity, El País reported that Venezuela was unable to retrieve its gold from the UK after British authorities refused release, saying they did not recognize Caracas’s monetary authority. El País added: “London is one of the world’s largest gold trading centers, which gives reserves a great deal of liquidity. But in times of rising authoritarianism, that immediacy is no longer so attractive.”
According to Money Metals, a 2023 World Gold Council survey found a “substantial share” of central banks concerned about potential sanctions after Western countries froze nearly half of Russia’s $650 billion gold and forex reserves. The WGC reported that 68% of surveyed banks plan to keep gold at home, up from 50% in 2020. Reuters quoted one central bank official, anonymously: “We did have it [gold] held in London… but now we’ve transferred it back to our country to hold as a safe haven asset and to keep it safe.”
What Spain must weigh
Spain’s central bank has not disclosed any plan to repatriate gold from the U.S., per El País and Money Metals. Advocates argue Europe-wide “strategic autonomy” supports bringing metal home, while others value the liquidity of major trading hubs. Money Metals’ Mike Maharrey frames the broader trend as underscoring the appeal of holding physical gold with minimal counterparty risk. Spain’s next move remains undisclosed.
