As U.S. Treasury moved to shore up its bond market, the Netherlands rushed 86 tons of gold out of America because of ‘geopolitical unrest’
For six months between March and August, the Dutch central bank quietly shifted 86 tons of gold out of New York and Ottawa to London, saying the move made it “better prepared for serious crises.” Confirming the action yesterday, De Nederlandsche Bank (DNB) stated that the decision had been made “due to the increasing geopolitical unrest” and therefore wanted to improve the “tradability” of Dutch gold.“Gold stored in London at the Bank of England … is considered the most easily tradable gold in the world,” wrote DNB. “This makes it the fastest way for DNB to deploy in a crisis situation. The part of the gold stock located in New York and Ottawa is less directly deployable.”
TL;DR
- The Dutch central bank moved 86 tons of gold from New York and Ottawa to London over six months.
- The relocation was motivated by increasing geopolitical unrest and a desire for better crisis preparedness and gold tradability.
- Gold stored in London at the Bank of England is considered the most easily tradable.
- Economists view this move as a dramatic signal about trust and the international reputation of the United States.
- The Banque de France also previously reallocated gold holdings away from New York to Europe.
- These actions occur as the U.S. national debt surpasses $40 trillion and questions arise about its fiscal trajectory and safe harbor status.