Why Europe's Gold Is Coming Home: The US Custody Crisis Nobody's Talking About

There’s a quiet storm brewing in European capitals, and it has everything to do with gold bars sitting in a Manhattan vault. Germany and Italy—holders of the world’s 2nd and 3rd largest gold reserves—are being pressured to bring back over $245 billion worth of bullion currently stored at the US Federal Reserve. And honestly? The timing couldn’t be more loaded.

The Postwar Setup That’s Falling Apart

This arrangement traces back to WWII’s aftermath, when New York became the global financial hub and keeping gold in Fort Knox seemed like the safest bet. Fast forward 80 years: Germany still has 37% of its reserves in the US, Italy holds 43%. That was fine when Washington represented stability. Today? Not so much.

The pressure is coming from everywhere. Germany’s BSW party politician Fabio De Masi recently told the Financial Times that repatriation makes “strong arguments.” Italy’s economic commentators are openly warning that trusting “an unreliable Trump administration” with nearly half their gold is “very dangerous for national interest.” Even the Taxpayers Association of Europe is sounding alarms: “It’s our money, it should be brought back.”

Trump’s Fed Interference = Trust Collapse

The catalyst? Trump’s recent public statements about “forcing” the Fed to cut rates—basically signaling he wants control over what’s supposed to be an independent institution. To Europeans already jittery about US reliability, this reads as: your gold reserves are hostage to American political whims.

It’s worth remembering Germany already tried this. A grassroots movement that started in 2010 pushed the Bundesbank to repatriate 674 metric tons from New York and Paris between 2013-2017 (cost: 7 million euros). By 2020, half of Germany’s reserves were back home. Lesson learned: if you want your gold, you gotta go get it.

The Global Shift Is Real

This isn’t just European drama. According to the World Gold Council’s latest survey:

• 59% of central banks now hold at least some gold domestically (up from 41% in 2024)
• 43% of surveyed central banks plan to increase holdings—a record high
• Only 7% wanted more US storage last year, but that interest jumped significantly by 2025

Translation: the world’s central banks are de-dollarizing their gold. They’re building reserves, keeping it close, and ditching the “trust America” playbook.

The Audit Bomb

Adding fuel to the fire: House Bill 3795 is calling for the first comprehensive audit of US gold reserves in 60+ years. A full inventory and forensic accounting of every gold transaction over the past 50 years. Trump’s already interested, saying he wants to “go to Fort Knox to see if the gold is there.”

Here’s the uncomfortable question experts are raising: do we actually know if the gold is still there? Or has it been leased, swapped, pledged away? One analyst pointed out that much US gold is impure by modern standards (melted down from old coinage), meaning even if bars are physically present, refinement becomes a messy question.

What Happens Next?

Meloni’s government went quiet on the repatriation question once she took power in 2022—classic political flip-flop. But the pressure won’t disappear. European voters are asking uncomfortable questions, central banks are moving reserves domestically, and Trump’s Fed statements have basically torpedoed the “American stewardship” narrative.

The postwar gold arrangement was built on trust in US institutions. That trust just cracked. Hard.