Dutch shift 86 tonnes of gold from US, Canada to UK due to 'geopolitical unrest'

The Dutch central bank recently relocated 86 tonnes of its gold reserves from the United States and Canada to London, citing rising geopolitical tensions. The Dutch National Bank (DNB) explained that gold reserves in London are more easily tradable than those stored in New York and Ottawa, making them more accessible for crisis situations. DNB President Olaf Sleijpen stated that this move enhances the bank's preparedness and resilience, even though a deployment of gold is unlikely.

Before the transfer, the Dutch bank stored 31.3% of its gold reserves in New York and 19.7% in Ottawa. Post-move, these figures are expected to be equal at 18.5% each, with the remaining 30.8% remaining in the Netherlands. A total of 27 tonnes of physical gold was moved from the US and Canada to Zeist, with an equal amount then transported to London, avoiding the need to melt down gold bars.

Laurent Schwartz, president of the Paris-based National Gold Counter, noted that central banks have been redistributing their gold reserves for the past decade. Schwartz suggested that the current political climate in the US might prompt other central banks to favor different storage locations. He highlighted that London's deeper and more liquid market makes it a more suitable option for rapid crisis deployment.

John Plassard, an analyst at Cite Gestion Private Bank, believed that the Dutch move was designed to increase immediate availability in case of a crisis, though it is currently a one-off action. He cautioned that if other central banks follow suit, it could undermine confidence in the US. In January, Germany expressed concerns about the security of its gold reserves in New York, though the Bundesbank decided against shifting its reserves away from New York for now.