Why every country suddenly wants its gold back
Why every country suddenly wants its gold back
Robert WhiteSat, June 27, 2026 at 7:00 AM UTC
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Gold has surpassed US bonds as central banks’ most sought-after investment - Science Photo Library RF
Central banks across the globe have been repatriating gold for years, but there are signs the trend is accelerating.
The number of countries increasing domestic storage of the precious metal has nearly doubled since last year, according to the World Gold Council.
While both the Federal Reserve in New York and the Bank of England, the two largest custodians of gold in the world, have been considered havens for decades, the Banque de France completed the relocation of 129 tonnes of gold from the US back within its own bordersin January.
The Deutsche Bundesbank and Banca d’Italia are also facing calls to bring home reserves from abroad.
Yet the Bank’s own holdings have been rising since September, suggesting its position as a custodian in bullion markets remains strong. So what is happening with the repatriation of gold?
‘A political symbol’
Analysts believe one factor is that committing to sovereignty over bullion is a show of strength in an increasingly hostile global order.
Populist governments in the Netherlands, Hungary and India have all repatriated gold in recent years in an effort to please voters.
“Holding a lot of gold at home becomes this symbolic strength,” Adrian Ash, the director of research at Bullion Vault, said.
“Central bank gold reserves are very much a political symbol. And many pressure groups, particularly on the Right, asked why so much of their national wealth was at the mercy of central banks overseas. They said: ‘We should have it all at home.’”
By holding gold domestically, central banks also eliminate the risk that a foreign country reneges on its promise to hold it.
Mr Ash pointed to increasing geopolitical risk as a factor behind the repatriation trend, citing the Russian invasion of Ukraine and subsequent sanctions in February 2022.
Hundreds of billions of pounds worth of Russian assets have been frozen abroad, creating tensions that are adding to the concern about the safety of storing gold overseas.
US interventions have also had an impact.
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Earlier this month, gold surpassed US bonds as central banks’ most sought-after investment, principally as a result of the White House’s aggressive foreign policy.
Mr Ash said Donald Trump’s tariffs, wars and territorial threats had provoked a “sudden collapse in trust” that the White House would be “friendly to its allies”.
He added: “Central banks and sovereign states buying gold, particularly when they keep it at home, really does speak to a world of mistrust and broken cooperation, and that’s been increasingly true.
“If you look at what happened with the US in Venezuela, and if you look at what happened with Iran, negotiating with Iran through bombers, I think that is playing into the appetite for gold among central banks.”
‘Pervading sense of uncertainty’
In an increasingly unstable world, the location of gold storage is paramount if the global order breaks down or a typically reliable country goes rogue.
Ned Naylor-Leyland, of Jupiter Asset Management, said: “When you think about gold, the only thing that matters is where it is, who has it and is there an encumbrance with a chain of ownership issue.
“Central banks understand that point, and they think, ‘you know what, we’ll have our gold back and we’ll look after it ourselves’.”
But while the World Gold Council’s survey points to an increase in repatriation, in part owing to populist politics and a changing global outlook, the Bank’s holdings in gold have increased every month since November last year.
The Bank’s website shows that the weight of gold in its custody is at its highest point since at least September 2022.
Ross Norman, of Metals Daily, said London retained “primacy” in gold markets, despite competitors such as Dubai, Singapore and Hong Kong looking to steal its crown.
“The Bank of England’s gold holdings are rising,” he added. “It’s a reflection that there’s an awful lot more gold being bought by central banks: some is being held in London, which is increasing, and a lot more is going home to their domestic countries or into other locations.
“What it tells you is the pervading sense of uncertainty about the world at the moment – hence buying gold, and hence holding in different jurisdictions.”
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Source: “AOL Money”
