Netherlands Moves 86 Tonnes of Gold to London
The Central Bank of the Netherlands transferred 86 tonnes of gold from the United States and Canada to the Bank of England's vaults in London. The decision was explained by rising geopolitical tensions and the need to ensure rapid access to reserves in the event of a crisis.
As MyJoyOnline reports, this concerns part of approximately 313 tonnes of Dutch gold that had been stored in North America. The transfer took place from March to August. Olaf Sleijpen, head of De Nederlandsche Bank, said that the bank does not expect to need to use these reserves but wants to strengthen resilience and crisis preparedness.
Why London was chosen
London was chosen because of its role as one of the world's main gold trading centers. This makes it possible to quickly buy or sell the metal in a crisis situation. The Bank of England's underground vaults hold about 400,000 gold bars worth more than £200 billion.
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Part of the operation was carried out without physically transporting the metal: the Netherlands sold about 59 tonnes of gold in New York and bought gold in London. More than 27 tonnes were physically delivered from the United States and Canada to the Dutch city of Zeist, after which approximately the same volume was sent to London.
Trend among central banks
Earlier this year, France announced the transfer of its gold reserves from the United States to the country. By 2016, Germany's Bundesbank had moved more than 216 tonnes of gold from foreign vaults: 111 tonnes from New York and 105 tonnes from Paris.
Goldman Sachs analysts Lina Thomas and Daan Struyven note that central banks are increasingly reviewing the locations where their reserves are stored. At the same time, storing gold in a country requires spending on physical security, audits and insurance. According to the World Gold Council, over the past four years central banks have accumulated an average of 1,000 tonnes of gold annually — twice as much as in the previous decade.
