German public figures urge govt to withdraw S$247 billion in gold reserves from US, say it's too risky

A number of German economists and finance experts have urged their government to withdraw its reserves of gold, with a large sum of it held in the U.S. state of New York, citing risk and the unstable geopolitical situation.

Emanuel Mönch, an economist and former head of research of Germany's federal bank (Bundesbank) said the gold reserves should be brought back to Germany as it is "too risky" to let it remain in the U.S.

Speaking to a German financial publication, as reported by The Guardian, Mönch attributed the risk to the current geopolitical situation.

"In the interest of greater strategic independence from the US, the Bundesbank would therefore be well advised to consider repatriating the gold."

Lots of gold

Germany holds about €450 billion (S$678 billion) worth in gold reserves. €164 billion (S$247 billion) of this is stored in New York, weighing 1,236 tonnes.

The rest is stored in Germany, London in the UK, and elsewhere.

Germany is a leading member of the European Union, which has recently come under unprecedented fire from U.S. President Donald Trump.

Trump, in his quest to seize the Danish territory of Greenland for the U.S., has threatened to slap steep tariffs on goods from European nations, as well as considering "military action", although the White House later walked back these comments.

Through the ordeal, Germany sided with its neighbour and EU partner in the standoff with the U.S.

However, Germany and the other European nations are not yet out of the woods, with Trump not ruling out a U.S. exit from NATO, the military alliance between the U.S. and European countries, as well as the UK.

National debate

Other than Mönch, other leading German figures have also advocated for bringing back the gold.

Michael Jäger, the head of the European Taxpayers Association (TAE) and the Association of German Taxpayers, also backed the move, citing Trump's Greenland provocations.

The opposition Green party in Germany's parliament, as well as far-right AfD party, have both supported such a move.

However, another leading German economist, Clemens Fuest, president of the Institute for Economic Research, said it might "pour oil on the fire" and lead to unintended consequences.

Top image from Pixabay.