Several European countries are moving hundreds of tons of gold from the United States and Canada to their own countries or to other destinations. The Dutch central bank recently announced the removal of 86 tons of gold out of the 313 tons of gold kept in North America. Not only the Netherlands, but also there French central bank and Germany's Bundesbank have brought back large amounts of gold from abroad to their countries in the past few years.
Why are European countries suddenly changing hands on their gold reserves? Are they foreseeing a major economic disaster. Although there is no definite danger of destruction, the main reason for this is the global situation. Growing geopolitical instability. Central banks are taking precautions in the context of regional conflicts and trade wars. This step is to ensure that their valuable assets are easily and quickly used in the face of any emergency crisis.
Countries are giving importance to strategic location in the transfer. A large part of the gold to be removed by the Dutch country is kept in the vault of the Bank of England in London. As one of the world's leading trading centers, London is the most suitable place for quick gold buying and selling and transactions during a crisis.
This transfer process is not primarily about carrying gold physically on cargo ships or planes. To avoid risky and expensive transportation, gold is often sold in one place and bought in another at the same time. This process is called a book transfer.
But the demand for physical gold transportation for security reasons has increased the work of international security agencies several times. In addition, inflation, interest rate fluctuations around the world, and the position of gold as a safe investment or safe haven are encouraging banks to stockpile more of this valuable asset.
In the last four years, central banks have accumulated an average of 1,000 tons of gold per year. Which is many times more than the average annual deposits of 500 tons in the previous decade. Which is many times more than the average annual deposits of 500 tons in the previous decade. All in all, it can be said that there is no fear of imminent destruction. Rather, European countries are choosing to transfer gold to strengthen and make their reserve management more effective in the face of growing economic uncertainty and geopolitical risks.