In the stormy seas of global finance, gold is often described as a nation’s “anchor.” However, for Germany, a significant portion of that anchor—valued at €164 billion—is currently resting on a distant shore. As geopolitical waves grow more turbulent, a growing number of experts are calling for the anchor to be brought back to the home harbor of Frankfurt to ensure the nation’s stability.
The gold in question represents about a third of Germany’s total €450 billion reserve. Storing 1,236 tonnes in New York was once seen as a strategic advantage, but that view is changing. Critics argue that an anchor is only useful if it is attached to the ship, and that Germany’s physical distance from its gold is a growing strategic liability.
Emanuel Mönch has been a vocal proponent of this “anchor” philosophy. He argues that the primary purpose of gold is to provide confidence during a crisis. If the public perceives that the gold might be inaccessible because it is in a foreign vault, that confidence evaporates. Therefore, he believes the gold must be physically present in Germany to serve its purpose.
This sentiment is shared by many who worry about the “weaponization” of the global financial system. They point to recent examples of international sanctions and asset freezes as proof that even the most secure-looking vaults can become political tools. To protect its “golden anchor,” they argue, Germany must act now to bring the bars home.
The Bundesbank, however, maintains that the anchor is perfectly secure where it is. Officials emphasize that the gold is held under clear legal titles and that the U.S. has always respected international banking norms. They argue that the current arrangement provides the best of both worlds: high-level security in New York and a significant domestic reserve in Frankfurt.