Spain weighs repatriating gold from New York Fed

Spain considers repatriating gold stored at the New York Federal Reserve

Gold is coming home. Or so it seems. Several European central banks have begun moving reserves custodied at the New York Federal Reserve, while Spain watches warily without deciding. The Netherlands made its move public; France and Germany had already taken steps; Italy resists pressure. Banco de España admits holding part of its reserves in the United States but refuses to disclose how much, citing confidentiality. It does provide the total figure: nine million troy ounces, 281 tonnes, approximately €33.2 billion in 2025.

Distrust toward Donald Trump is not the only trigger. In 2022, the freezing of Russian assets abroad raised alarms among non-aligned countries. In 2024, India massively repatriated gold held at the Bank of England, later extending operations to Basel. Venezuela has been trying since 2018 to recover its gold from London without success: the City does not recognize Caracas's monetary authority. Holding metal nearby offers liquidity; amid rising authoritarianism, that immediacy loses appeal.

Why Spain holds less gold than Austria or Lebanon

History explains the deficit. During the Civil War, Banco de España sent gold to Moscow and Paris to fund Republican defense. After the conflict, reserves were exhausted. Spain joined the IMF in 1958 and secured gold-backed currencies to participate in the system. Until 1972, an ounce equaled $35. Then came the Great Recession, and in 2007 Madrid ordered the disposal of nearly a third of its gold, deeming it "unprofitable." Consequently, the eurozone's fourth-largest economy ranks sixth in holdings, tied with Austria, whose central bank discloses details: most in Vienna, 84 tonnes in the UK, and 56 in Switzerland.

Who decides and on what criteria

Each capital manages its gold, but national reserves count as an Eurosystem buffer. The ECB states it has issued no recommendations on repatriation. Frankfurt prefers sovereign debt. Some argue coordinated Eurosystem action would be prudent, noting abrupt repatriations create unnecessary loopholes. Conversely, Professor Luis Garvía sees it clearly: "Bringing gold back to Spain wouldn't be a sovereignty gesture; it would be part of the EU's strategic autonomy framework." He reminds us gold is not just any financial instrument: it underpins monetary policy and trust.

Antiestéticar of embargo and the ghost of Solbes

Concern over seizure pervades discussions. Market sources suggest deposits at the Fed are minimal, leading some analysts to believe moving them isn't worthwhile: the impact would be symbolic and generate useless excuses. The 2007 wound remains open. People recall that the then-economic chief sold over a third of reserves at $500 per ounce because he saw no upside potential. Shortly after, the metal skyrocketed. Bitter irony sets in naturally: leave it out and they take it; bring it here and they polish it off.

The dilemma no one wants to solve

With these elements, the decision appears more political than financial. Repatriating signals sovereignty; leaving it where it is signals confidence in the system. Neither option comes cheap. And while the world order seeks balance, the pieces remain solid gold. The most honest prediction: Spain won't make a move until someone with more weight does first.