The short version
- De Nederlandsche Bank has moved 86 tonnes of gold reserves from the US and Canada to London, aiming to improve deployability in crisis situations.
- The move was driven by concerns over geopolitical unrest and the desire for easier access to liquid markets in the UK.
- Analysts view this as a precautionary measure that could signal broader shifts in how central banks manage their assets amid global instability.
De Nederlandsche Bank (DNB), the central bank of the Netherlands, has moved 86 tonnes of its gold reserves from the United States and Canada to London. The decision was announced on Wednesday, with the bank citing 'increasing geopolitical unrest' as a primary reason for the relocation. This move is part of a broader strategy to enhance the deployability of gold reserves in potential crisis situations.
According to The Guardian Business, the DNB stated that holding gold in London allows for easier trading and faster deployment compared to storage in New York or Ottawa. President Olaf Sleijpen emphasized that while the bank assumes it will never need to deploy the gold, strengthening resilience and preparedness is necessary. The total Dutch gold stock amounts to 612.4 tonnes, valued at €72.2 billion ($83.7 billion) at the end of 2025.
Before the transfer, 31.3% of the Netherlands' gold was held in New York and 19.7% in Ottawa. After the move, each country accounts for 18.5% of the reserve, while the share held in London increased from 18.1% to 32.1%. The bank still retains 30.8% of its gold domestically in the Netherlands. The operation involved both physical transfers and financial transactions to minimize risks associated with moving large quantities of precious metals.
The transfer took place between March and August of this year, involving the movement of more than 27 tonnes of physical gold from the US and Canada to Zeist, followed by a similar quantity from Zeist to London. This approach prevented the need to melt down gold bars and spread the risks associated with physical transport. The DNB highlighted that combining buying, selling, and physical transport helped mitigate potential issues during the relocation.
Laurent Schwartz, president of the Paris-based National Gold Counter, noted that central banks have been moving reserves around for about a decade. He suggested that the current political context in the United States might be pushing certain institutions to favor other storage locations. The London market is considered the deepest and most liquid, making it easier for central banks to lend gold to other banking institutions during times of crisis.
John Plassard, an analyst at Cite Gestion Private Bank, described the Dutch move as intended to ensure 'more immediate availability in the event of a crisis.' While he characterized it as a 'fairly one-off move,' he warned that if other central banks followed suit, it could damage confidence in the US. Earlier this year, concerns were raised in Germany about the security of its reserves in New York, though the Bundesbank has decided not to shift its holdings away from the US for now.
The decision to relocate gold reserves reflects growing anxieties about geopolitical risks and the stability of traditional storage locations. The New York Times and WSJ reported that the move is driven by a desire for greater flexibility and security in an uncertain global environment. By diversifying storage locations, the DNB aims to reduce exposure to any single jurisdiction's political or economic instability.
CNBC highlighted that the move is part of a broader trend among central banks to reassess their asset management strategies. The emphasis on 'crisis preparedness' suggests that policymakers are prioritizing resilience over convenience. This shift could have implications for global financial markets, particularly if other nations decide to follow the Netherlands' example.
The relocation of gold reserves also underscores the importance of liquidity in times of crisis. London's status as a leading hub for gold trading makes it an attractive option for central banks seeking quick access to their assets. The ability to trade and lend gold efficiently can provide valuable support during economic downturns or geopolitical tensions.
In summary, the Netherlands' decision to move 86 tonnes of gold reserves from the US and Canada to London highlights the evolving landscape of global finance and security. As geopolitical unrest continues to shape international relations, central banks are increasingly focused on safeguarding their assets and ensuring readiness for potential crises. This move may serve as a precedent for other nations considering similar adjustments to their reserve management strategies.
Sources behind this briefing
Go to the original reporting
- The Guardian Business↗Dutch central bank moves 86 tonnes of gold to UK from US and Canada, citing ‘geopolitical unrest’
- The New York Times↗Dutch Central Bank Cuts Gold Reserves in U.S., Citing ‘Geopolitical Unrest’
- Al Jazeera↗Why has the Netherlands moved $10bn of its gold from the US?
- WSJ↗Netherlands Moves Gold From New York to London, Citing Geopolitical Unrest
