Shift in relations and unpredictability of Donald Trump make it ‘risky to store so much gold in the US’, say experts

Germany is facing calls to withdraw its billions of euros’ worth of gold from US vaults, spurred on by the shift in transatlantic relations and the unpredictability of Donald Trump.

Germany holds the world’s second biggest national gold reserves after the US, of which approximately €164bn (£122bn) worth – 1,236 tonnes – is stored in New York.

  • StinkyFingerItchyBum@lemmy.caEnglish
    8·
    3 hours ago

    Silverlinings: Trump putting a hard stop capital control will instantly shake the world out of it’s stupor of normalcy. It would set all foreign capital into a panic and the value of USD would drop and the foreign holdings of debt and equities would stop, drop and roll.

    Most of the biggest collective investors are pensions and insurance corps and they are legally obligated to buy only safe assets. Nothing about this administration is safe. Now the pressure on rating agencies would be enourmous to lie and say they are “safe” when that would just destroy their credibility. Memories of the 2008 bloodbath come to mind, but this time, no global coordination of a response.

    Saying no to Germany’s gold now would only start a massive financial shitshow of increadible speed and destruction.

    • Kjell@lemmy.worldEnglish
      6·
      8 hours ago

      I’m thinking that other countries might rush to withdraw their gold even if Germany get their gold. Because Trump might very well say something on social media about how awful Germany is when they are taking back their gold and that he maybe should stop it. Which could trigger other countries since no one will be the last one with large gold reserves in USA.