Spain confronts the dilemma of what to do with gold held in the US Federal Reserve

Spain debates whether to repatriate the gold it custody in the United States Federal Reserve, a move other European countries have already initiated amid a context of growing international uncertainty.

## The gold moving across the globe

The global order is turbulent, and some of the key pieces on this chessboard are literally solid gold. Several European central banks have decided to retrieve their gold reserves that were held in the **New York Federal Reserve**. **The Netherlands** made its move public recently, but **France** and **Germany** had already taken steps in this direction. Meanwhile, **Italy** faces increasing social pressure to do the same. The **Banco de España** admits having part of its gold reserves in the United States, but due to confidentiality reasons, it does not disclose what percentage this represents of the total or if it plans to move it. The main reason for this fluctuation is not solely the distrust generated by former U.S. President **Donald Trump**. In **2022**, the freezing of Russian assets abroad, as part of sanctions for the invasion of Ukraine, sounded alarms in countries not aligned with major powers. In **2024**, **India** repatriated a massive quantity of gold it had stored in the **Bank of England**, and then extended this operation to reserves held in **Basel**. **Venezuela** attempted to retrieve its reserves in **London** to aid the country's reconstruction after an earthquake, but **London** has refused custody since **2018**, not recognizing the monetary authority of Caracas. **London** is one of the world's largest gold trading centers, which provides much liquidity to reserves. However, in times when authoritarianism seems to be gaining ground, that immediacy is no longer as attractive.

## A closely guarded secret

According to some experts, bringing the gold back to Spain would not only be a gesture of sovereignty but also part of an autonomy strategy for the **European Union**. Spain is particularly reserved about the gold it manages; only the total amount is known: **nine million Troy ounces** (about **281 tonnes**). By the end of **2025**, this amounted to about **33.2 billion euros**. It is known that the majority is held in the Gold Chamber of the **Banco de España**, but an unspecified portion is distributed among the **Basel Payment Bank**, the **Bank of England**, and **New York**. Despite being the fourth economy in the Eurozone, Spain ranks sixth in gold holdings, tied in quantity with **Austria**. The Austrian central bank, however, details how it distributes its reserves: most are in **Vienna**, but it holds **84 tonnes** in the **United Kingdom** and **56** in **Switzerland**. Unlike other European capitals, Spanish gold is a relatively recent acquisition. During the Civil War, the **Banco de España** sent the gold to **Moscow** and **Paris** to finance the Republican defense; by the end of the conflict, the reserves were depleted. A few years later, at the **Bretton Woods Conference**, a new international financial architecture was designed based on the gold standard. Despite the isolation of the Franco regime, Spain joined the **IMF** in **1958**, and by then had accumulated the necessary gold reserves to integrate into the system. Until **1972**, one ounce of gold was equivalent to **35 dollars**, and with this fixed exchange rate, central banks used the metal as a basis for issuing currency. Experts explain that gold is not just any financial asset; it is the foundation of monetary policy and how trust is managed.

## Gold after the gold standard

Although the world abandoned the gold standard, central banks still maintain it as a backing for their currencies, alongside other assets such as foreign exchange (especially dollars) or public debt. In **2007**, shortly before the Great Recession, **Madrid** decided to sell nearly one-third of the gold it considered “less profitable,” one reason why its holdings are smaller than those of neighboring countries. The gold of each Eurozone country is managed individually —and the **ECB** has issued no recommendations regarding its repatriation—but national reserves count as part of the total Eurosystem cushion. The **ECB** also holds its own gold reserves, but relies on those of others to back the common currency. **Frankfurt** appears to have a greater preference for public debt, something not all analysts view favorably. Some believe that coordinated action within the Eurosystem would be the most sensible approach, rather than opening the door to “abrupt repatriations.” Market sources, who prefer to remain anonymous, suggest that the amount of Spanish gold deposited in the **Federal Reserve** is small. Therefore, some analysts believe it would not be worth moving, arguing that the risk of an embargo or confiscation is very remote and unlikely. The impact, they say, would be more symbolic, and in the current context, adding “useless excuses” does not seem like a good idea.