Dutch central bank moves 86 tonnes of gold to UK from US and Canada, citing ‘geopolitical unrest’

The Dutch central bank has transferred 86 tonnes of gold reserves from the United States and Canada to London, citing "increasing geopolitical unrest" as the reason. The Dutch bank, known as De Nederlandsche Bank (DNB), explained that holding gold in London would make it easier to trade and deploy in crisis situations. With this shift, London now accounts for 32.1% of the Dutch gold reserve, up from 18.1%, while the shares held in New York and Ottawa each decreased from 31.3% and 19.7% to 18.5%, respectively.

The bank moved over 27 tonnes of physical gold from the US and Canada to Zeist, and an equal amount from Zeist to London, avoiding the need to melt down the gold bars. This operation occurred between March and August this year. Laurent Schwartz, president of the National Gold Counter in Paris, noted that central banks have been moving their reserves around for about a decade, and the current political climate in the US might push other banks to favor alternative storage locations.

The London market's depth and liquidity make it more accessible for quick deployment in times of crisis. Dutch central bank president Olaf Sleijpen emphasized that the move improves the "deployability" of the gold reserves and strengthens the bank's resilience and preparedness, even though the gold is not expected to be used. John Plassard, an analyst at Cite Gestion Private Bank, suggested the move was "one-off," but warned that if other central banks followed suit, it could negatively impact confidence in the US.

Despite concerns raised in Germany about the security of its New York reserves, the Bundesbank has decided not to shift its gold away from New York for now, stating that the New York Federal Reserve is still an important storage site for its gold.