LONDON — The growing popularity of gold as a hedge against global economic uncertainty has reignited debates over where nations choose to store their bullion reserves. Two of the world’s largest gold repositories remain in New York and London, with the Federal Reserve Bank of New York and the Bank of England providing secure vaults for foreign central banks and financial institutions.

As of the end of 2024, the New York Fed held more than 500,000 gold bars, making it the largest single monetary gold storage site worldwide. This figure peaked in 1973, shortly after the United States severed the dollar’s direct backing by gold, a move that diminished gold’s central role in international finance. Despite this shift, advanced economies in Europe and the U.S. have collectively maintained significant gold reserves, accounting for 57% of the global total, according to an analysis by the Brookings Institution. The United States leads with the largest holdings, followed by Germany, Italy, and France. Meanwhile, emerging market central banks have been the primary gold buyers in recent years.

Historically, the issue of gold storage outside national borders has been most pressing for countries facing international sanctions. Venezuela’s long-standing legal dispute seeking access to gold held by the Bank of England exemplifies these concerns. However, more recently, heightened geopolitical rhetoric, particularly from former U.S. President Donald Trump’s critical comments about European allies, has fueled fresh calls among some European officials and lawmakers to repatriate their gold reserves.

In Europe, demands for repatriation have largely come from voices in Germany and Italy. Germany had previously moved portions of its reserves back home about a decade ago, but currently retains roughly half domestically, with about one-third stored in New York and the remainder in London. Italy’s gold is split almost evenly between domestic vaults and those in New York, with the rest held in the United Kingdom and Switzerland. Both countries’ central banks have stated they do not plan any immediate changes to their gold storage arrangements.

Central banks cite several reasons for continuing to store gold in New York and London. Both the Federal Reserve and the Bank of England have long-standing reputations for stringent security; neither has ever reported theft, even during transfers. During World War II, for example, gold stored in London was temporarily moved to Canada to safeguard it from potential wartime losses. Furthermore, storing gold in major financial hubs facilitates liquidity and quick transactions. Krishan Gopaul, senior analyst at the World Gold Council, noted that central banks prefer to keep bullion close to financial centers where buying and selling occur.

The Bank of England currently safeguards approximately 430,000 gold bars across nine vaults for over 60 central banks. This setup allows holders to trade gold internally without physically moving it. While London and New York continue to dominate global gold storage, other cities like Hong Kong are attempting to establish themselves as alternatives, especially for countries seeking options outside Western financial systems.