German gold reserve to stay at New York Fed
Germany has decided its gold is safe in American hands.
Surging mistrust of the euro during Europe’s debt crisis fed a campaign to bring Germany’s entire US$141 billion gold reserve home from New York and London. Now, after politics shifted in Chancellor Angela Merkel’s coalition, the government has concluded that stashing half its bullion abroad is prudent after all.
“The Americans are taking good care of our gold,” Norbert Barthle, the budget spokesman for Mrs Merkel’s Christian Democratic bloc in parliament, said in an interview. “Objectively, there’s absolutely no reason for mistrust.”
Ending talk of repatriating the world’s second-biggest gold reserves removes a potential irritant in US- German relations.