The ongoing geopolitical tensions are prompting central banks around the world to re-evaluate where to store their gold reserves. The Dutch Central Bank announced this week that it had relocated approximately 86 tons of gold from New York and Ottawa to London between March and August of this year in order to enhance its response capabilities and the availability of its reserves during times of crisis.
London's share has risen to 32.1%
After the adjustment, London's proportion of holding Dutch gold reserves rose to 32.1%, higher than the previous 18.1%, making it the largest overseas gold storage location for the Netherlands. The Governor of the Dutch Central Bank, Olaf Sleijpen, stated that this adjustment improved the convenience of trading gold reserves and also enhanced overall resilience.
Most are completed through substitution.
This time, most of the adjustment did not involve directly transporting gold bars from North America to the UK. The Dutch Central Bank revealed that they first sold about 59 tons of gold in New York and then purchased an equivalent amount of gold in London to complete the replacement.
In addition, over 27 tons of gold were actually transported back to the Netherlands from the United States and Canada, while a similar amount of gold was transferred from the Netherlands to London. This indicates that this reallocation involved both book replacement and physical transfer.
Central banks of multiple countries re-examine the availability of reserves
The Dutch central bank stated that keeping gold in London is advantageous for faster sales in emergency situations, as London is one of the world's major gold trading centers, and the relevant gold bars also meet international trading standards. The bank refers to gold as "ultimate reserve assets," emphasizing its role in the face of extreme systemic risks.
Similar actions are not limited to the Netherlands. The French Central Bank sold its remaining gold reserves in New York between July 2025 and January 2026, and purchased alternative gold bars in Europe instead. A survey by the World Gold Council in June revealed that over the past year, 10% of central banks have diversified their overseas gold storage locations, up from 2% a year ago; 9% of central banks have increased their local storage proportion.
Gold remains at a high level.
This change occurred against the backdrop of gold's continuous strength in recent years. Driven by geopolitical risks and central bank buying, spot gold closed at around $4,470 per ounce later on Thursday, representing a year-on-year increase of about 3.5%; in late January this year, gold prices briefly rose to a record high of nearly $5,600 per ounce.
