The Dutch central bank (DNB) has confirmed the transfer of gold worth billions of dollars from North America to London, citing rising geopolitical instability as the reason. Citing the DNB, the BBC reported on Wednesday that 86 tonnes of gold were moved from the United States and Canada through a complex process spanning several months. The gold is now stored at the Bank of England, where the precious metal can be more easily traded during times of crisis. Bank official Olaf Sleijpen stated that this move was necessary to strengthen resilience and preparedness. The decision comes amidst an ongoing trade dispute between the US and Canada; following the failure of trade talks, both nations announced new tariffs on each other’s goods.
The DNB reported that during the transfer process—which took place between March and August—27 tonnes of gold bars were transported from New York and Ottawa to Zeist in the Netherlands. Subsequently, an equivalent amount and quality of gold was sent to London; the gold bars did not need to be melted down and recast. Details regarding exactly how such a vast quantity of gold was transported across the Atlantic Ocean were not disclosed. The remainder of the transfer was executed by selling gold in New York and repurchasing it in London.
A statement noted that by simultaneously managing the processes of trading and direct physical transport, the risks associated with such a complex physical gold transfer could be distributed. The DNB did not specify exactly what it meant by “geopolitical instability.” However, the US economy remains in a state of uncertainty due to ongoing tensions with Iran, which has impacted global trade. Meanwhile, key Canadian sectors—such as steel, aluminum, timber, and automobiles—have suffered significant blows due to US tariffs. Additionally, in August, the US announced an additional 50 percent tariff on Canadian goods valued at approximately 28 billion Canadian dollars. The DNB stated that the gold held at the Bank of England is considered the “most liquid gold in the world.” Consequently, in times of crisis, gold stored in London can be utilized or sold more quickly than gold held in the United States or Canada. Prior to Wednesday’s announcement, 31.3 percent of the DNB’s total gold was held in New York and 19.7 percent in Ottawa; following the transfer, the share in both locations dropped to 18.5 percent.
The DNB reported that the Netherlands’ total gold reserves stood at 612.4 tonnes, valued at €72.2 billion. After the transfer, the proportion of the DNB’s gold reserves held in London rose from 18.1 percent to 32.1 percent. Additionally, the bank retains 30.8 percent of its total gold reserves within the Netherlands itself.
