Netherlands moves gold from US to London: Why UK capital is a major storage hub
The Dutch central bank has relocated $12 billion in gold from New York and Ottawa to London, accounting for over a quarter of its bullion. Jan Kubicek, a board member of the Czech central bank, said London serves as Europe’s gold market.
The Dutch central bank has recently transferred a significant portion of its gold reserves from the United States to London, in response to growing geopolitical tensions worldwide. This move comes as London is home to the world's most active and liquid gold market, with hundreds of billions of dollars worth of precious metal traded there each week.
The Bank of England, which is the primary storage partner for central banks, offers the ability to quickly buy, sell, or lend large amounts of gold when needed. Furthermore, gold held at the Bank of England complies with global standards for bar weight and purity, making it easily exchangeable and tradable across international markets.
As a result, London now accounts for almost one-third of the Netherlands' gold reserves, making it the largest storage location for the country.
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