German economists are urging the government to repatriate its vast gold reserves from US vaults, citing concerns over the current administration's unpredictability and the shifting transatlantic relations. The call comes as Germany, the world's second-largest holder of national gold reserves, stores approximately €164 billion worth of gold, equivalent to 1,236 tonnes, in New York. Emanuel Mönch, a renowned economist and former research head at the Bundesbank, advocates for bringing the gold home, emphasizing the risks associated with keeping it in the US under the current leadership. Mönch's stance aligns with the broader sentiment among economists and financial experts, who argue that such a move would enhance Germany's strategic independence from the US. Michael Jäger, head of the European Taxpayers Association and the Association of German Taxpayers, supports this view, citing Trump's unpredictable nature and revenue-generating actions as threats to the safety of Germany's gold reserves. Jäger has written to the Bundesbank and the finance ministry, urging them to repatriate the gold. The debate over gold repatriation has gained traction beyond far-right circles, with Katharina Beck, the finance spokesperson for the opposition Greens, advocating for the relocation of gold bars as a means to maintain stability and trust. However, Clemens Fuest, a prominent economist, warns against such a move, suggesting it could have unintended consequences and exacerbate the current situation. Germany's total gold reserves are valued at nearly €450 billion, with half held in Frankfurt, 37% in New York, and 12% in London. The Bundesbank assures that its gold reserves are well-diversified and regularly audited, and the current situation does not warrant panic, according to Frauke Heiligenstadt, the parliamentary group spokesperson on financial policy for the Social Democrats. Yet, with Trump's increasingly hostile rhetoric towards Western allies, more voices within Merz's Christian Democrats are advocating for the relocation of gold reserves, emphasizing the loss of reliability in the US as a partner.
