Why the Netherlands is moving billions in gold to London

The Dutch Central Bank has reportedly confirmed that billions of dollars in gold have been taken out of North America and relocated to London due to escalating geopolitical tensions.

On Wednesday, DNB confirmed that 86 tonnes of gold had been removed from the US and Canada in an extended campaign that took months and are now being held by the Bank of England.

The recent decision comes due to long-running commercial disagreement between the US and Canada as both countries announced fresh tariffs on each other after trade negotiations collapsed.

The bank confirmed that the rest of the transfer was held by selling the gold in New York, and repurchasing in London.

The official statement reads: “Combining the processes of buying and selling and physical transport has allowed DNB to spread the risks associated with such a complex physical gold relocation.”

At present, DNB did not confirm it was in a state of political turmoil, but the US economy remains in a state of extreme instability, impacting global trade.

DNB confirmed that gold is held with the Bank of England and considered as the world’s most easily tradable gold available in major crises still in the US and Canada.

Furthermore, the bank’s share of gold held in London has significantly increased from 18.1% to 32.1% following the recent move, while it retains 30.8% of its reserves in the Netherlands.