A gold warning flashing red. Is a new crisis forming?

In a move that could signal a new crisis on the horizon, the Dutch central bank has relocated a quarter of its gold reserves from North America to London. De Nederlandsche Bank (DNB) disclosed this decision, stating it is aimed at crisis preparedness due to increasing geopolitical unrest. The bank holds 612.4 tonnes of gold, valued at €72.2 billion as of the end of 2025, with 32% currently held in London, up from 18.5% before the move.

Unlike a straightforward transfer of physical gold, DNB transferred 27 tonnes to its secure vault near Zeist, while 59 tonnes were sold and replaced with gold purchased in London. The remaining gold was moved to London. Central banks typically do not cite geopolitical risk for routine reserve changes; this is the first time DNB has explicitly linked the move to rising geopolitical tensions.

The bank holds 612.4 tonnes of gold, valued at €72.2 billion as of the end of 2025. The relocation to London, the world's principal wholesale gold market, allows for quicker deployment of reserves in a crisis, as gold stored in London can be traded without physically moving the bars. However, the decision goes beyond efficiency; DNB explicitly linked the relocation to geopolitical unrest and crisis preparedness.

While there's no indication of a specific threat like the US seizing Dutch assets, DNB's move suggests that current geopolitical conditions have deteriorated enough to justify the change. The decision comes at a time of strained Western alliances, with the US fighting Iran and its disputes with allies escalating. Gold is particularly valuable in such crises as it can be sold, pledged, or exchanged for liquidity without relying on other institutions' creditworthiness.