Netherlands Moves 86 Tonnes of Gold to London Amid Rising Geopolitical Risks

The Dutch central bank has moved 86 metric tonnes of gold from New York and Ottawa to London as part of measures aimed at strengthening crisis preparedness amid rising geopolitical tensions.

The De Nederlandsche Bank (DNB) held 612.4 tonnes of gold worth about €72.2 billion ($83.6 billion) at the end of 2025. Meanwhile, the latest move has highlighted a wider debate over how central banks manage and diversify strategic reserves.

Dutch Gold Holdings Shift Toward London

The transfer did not require the physical shipment of all 86 tonnes across the Atlantic. Instead, DNB physically moved 27 tonnes from New York and Ottawa.

The remaining gold was sold in New York. At the same time, DNB purchased an equivalent amount in London through a book transfer.

This approach avoided the costs and security risks associated with transporting large quantities of bullion. Nevertheless, the change significantly altered the location of Dutch gold reserves.

The share of Dutch gold held in New York fell from 31.3% to 18.5%. As a result, London became the largest overseas custodian of the Netherlands’ gold.

Central Banks Reassess Gold Custody

The Dutch move comes amid a broader reassessment of overseas gold holdings. For example, Germany announced in 2013 that it would repatriate 674 tonnes of gold from New York and Paris to Frankfurt.

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The Bundesbank said the German programme aimed to strengthen confidence in the country’s reserves. Furthermore, Germany completed the repatriation in 2017, ahead of schedule.

France also reduced its exposure to US-based gold custody. Between July 2025 and January 2026, the Banque de France sold 129 tonnes held in New York and acquired equivalent bullion elsewhere in Europe.

Serbia followed a similar path. Since 2022, Belgrade has repatriated its gold reserves. By 2025, Serbia had brought all its gold bars back to the country.

Poland also increased its domestic holdings. In 2019, then-central bank governor Adam Glapinski described gold as an expression of national sovereignty. Warsaw subsequently repatriated 100 tonnes from the Bank of England.

Ukraine War Changed Reserve Calculations

These decisions do not necessarily represent a rejection of Western financial institutions. Nor do they mean central banks expect an imminent collapse of the dollar-based monetary system.

Instead, the moves point to a broader strategy of reserve diversification. In particular, Russia’s invasion of Ukraine changed how governments assess the risks surrounding overseas assets.

The United States and its allies froze more than $300 billion in Russian foreign assets after the invasion. Consequently, central banks faced a new question: whether assets held in another jurisdiction would remain fully accessible during a major geopolitical crisis.

Gold has a unique role in that calculation. Unlike government bonds or bank deposits, physical gold does not carry an issuer’s credit risk.

Central Banks Continue Buying Gold

Central banks have significantly increased their gold purchases in recent years. According to industry data, central banks bought more than 1,000 tonnes annually in each of the three years from 2022 to 2024.

Purchases remained elevated in 2025. During that year, central banks acquired about 863 tonnes of gold.

The buying trend reflects concerns over geopolitical fragmentation and fiscal sustainability. It also reflects questions about the long-term role of the US dollar.

However, the dollar remains deeply embedded in global finance. It continues to dominate international trade, financial markets, cross-border payments and official reserves.

Therefore, the latest gold movements do not signal an immediate end to the dollar’s global role. Instead, they suggest that countries increasingly want alternatives alongside traditional reserve assets.

Gold Becomes a Strategic Hedge

For central banks, gold can provide a hedge against geopolitical and financial risks. At the same time, different countries have different priorities.

Some governments may prefer direct physical control of their reserves. Others, however, may prioritise liquidity, trading access or diversification across several custodians.

The Netherlands’ decision therefore appears less like a rejection of Western financial centres and more like a restructuring of reserve management.

Moreover, Germany, France, Serbia and Poland have demonstrated that gold repatriation can take place gradually without disrupting international markets.

A Quiet Shift in Reserve Strategy

For decades, New York and London remained major custodial centres for central bank gold. Their security, liquidity and links to global markets made overseas custody attractive.

The Ukraine war, however, changed the risk calculation. The freezing of Russian reserves demonstrated that ownership and practical access can become separate issues during geopolitical confrontations.

That lesson could influence reserve management for years. As a result, the growing demand for gold may represent less of an exodus from Western markets and more of a gradual restructuring of sovereign balance sheets.

The Netherlands is the latest example of this shift. Overall, central banks appear to be keeping more options open as geopolitical risks evolve.

Gold cannot predict the future. However, its movement can offer clues about how policymakers assess global risks. The decision to hold strategic reserves closer to home may ultimately say as much about changing geopolitical confidence as it does about gold itself.