Dutch Central Bank moved 86 tons of gold reserves to London

Exactly 86 tons of gold were removed from the safes and transferred to another country in a remarkable operation that lasted months. Behind the change of address of billions of euros of reserves lies a global concern that has been growing recently.

According to Wio News, the operation started in March and lasted until August. While some of the gold was physically transported, a much more unusual method was used for the 59-ton portion.

So why did 86 tons of gold move? The most striking detail is hidden in the justification of the operation.

'INCREASING GEOPOLITICAL UNRESTIVE'

The owner of the move in question was soon revealed: The Dutch Central Bank (DNB).

The bank shifted a significant part of its gold reserves located in New York, USA, and Ottawa, Canada, to London, the capital of England. The main reason for the decision was clearly stated: "Increasing geopolitical unrest."

According to DNB, keeping a larger portion of the reserves in London will enable gold to be used much faster in the event of a serious financial crisis or geopolitical shock.

Because London hosts the world's largest, deepest and most active physical gold market. Hundreds of billions of dollars of gold transactions are carried out in the city every week.

DNB President Olaf Sleijpen said in his statement after the move, "With this step, we increased the availability of our gold reserves."

Sleijpen said that they hope that gold will never be needed, but it is necessary to strengthen the country's resilience and preparedness against crises.

59 TONS OF GOLD NEVER MOVED

The most striking detail of the operation emerged in how the 86 tons were displaced. Not all gold was physically transported between continents. Approximately 27 tons of gold were removed from safes in North America and first sent to the DNB cash center in Zeist, the Netherlands, and from there it was transported to London.

There was no physical transportation for the remaining 59 tons. While this amount of gold was sold in New York, an equivalent amount of gold was simultaneously purchased in London. Thus, while the risks that may arise from transporting gold between continents were reduced, expensive remelting processes were also avoided.

THE NEW ADDRESS OF GOLD HAS BEEN ANNOUNCED

After the operation, there was a remarkable change in the distribution of reserves. The proportion of Dutch gold held in New York decreased from 31.3 percent to 18.5 percent. Canada's share also fell from 19.7 percent to 18.5 percent.

The proportion of gold held in London increased from 18.1 percent to 32.1 percent. 30.8 percent of the Netherlands' gold reserves continue to be held within the country.

The total gold reserves of the Netherlands are at the level of 612.4 tons and the value of these reserves is over 72 billion euros.

It is a normal practice for central banks to change the places where gold reserves are kept from time to time. However, the increase in global political uncertainties and policy tensions between the two sides of the Atlantic increases the importance of gold reserves in Europe being not only safe but also rapidly available when necessary.

This 86-ton move was one of the striking signs of this new era.