Eric Sepanek
SBC Founder
Eric Sepanek is the founder of Scottsdale Bullion & Coin, established in 2011. With extensive experience in the precious metals industry, he is dedicated to educating Americans on the wealth preservation power of gold and silver.
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In early 2026, France finalized a complete repatriation of its gold reserves, pulling remaining holdings out of the U.S. This ends a nearly century-long custodial relationship between Paris and New York.
Although French diplomats claim the move was “not politically motivated,” it adds to a growing trend of countries, including close allies, bringing gold reserves back within their own borders. This is part of a broader shift on the global stage, as the U.S. is no longer viewed as a reliable safe-haven for official investors nor the unquestioned center of the global financial system.
France’s $15 Billion Gold Move
In July 2025, France began selling its reserves held in the U.S., as part of a broader initiative to domesticate their global stockpiles. This process was finalized in January 2026, with Paris pawning off the last of its 129 metric tons in New York, which represented about 5% of the country’s total reserves.
Now, all of France’s 2,437 tons are held within its own borders. The momentous decision was undoubtedly born out of a larger fiscal policy shift, but the French made away with $15 billion in gains. With gold prices sitting near record highs throughout the transition, Banque de France generated a tidy profit in the process.
The official reason for the repositioning was to upgrade the bullion quality to improve tradability, liquidity, and compliance. Much of the reserves held in New York on behalf of France were older gold bars. However, geopolitical experts and financial commentators have cast doubt on this bureaucratic justification. Instead, many see it as a subtle rebuke of reliance on U.S.-based storage.
Central Banks Rethink Where Gold Is Held
France’s move follows a pattern that has been building for more than a decade, with countries steadily bringing gold reserves back under domestic control.
- Venezuela (2011–2012) – Repatriated roughly 160 tonnes from U.S. and European banks as Hugo Chávez pushed to shield reserves from Western financial risk.
- Netherlands (2014) – Moved 122.5 tonnes from New York to Amsterdam, citing the need to have reserves closer to home during periods of financial uncertainty.
- Germany (2013–2017) – Brought back 674 tonnes from New York and Paris to Frankfurt in a widely publicized effort to increase domestic control over national reserves.
- Austria (2018) – Transitioned about 90 tonnes while restructuring its reserve strategy to maintain a more balanced split between domestic and foreign storage.
- Turkey (2017–2018) – Pulled 220 tons of gold out of the U.S. and redirected holdings domestically amid rising geopolitical tensions with the U.S.
- Poland (2019) – Returned 100 tonnes from the Bank of England as part of a broader push to reinforce financial sovereignty and reserve security.
How the U.S. Became the World’s Gold Vault
Foreign countries have held their gold reserves on U.S. soil for over a century. This practice started in the 1920s as New York positioned itself at the center of the global financial system, both for settlement and security. In the aftermath of World War II, European countries flooded U.S. vaults with physical gold for safekeeping.
The Bretton Woods Agreement of 1944, which ironically signaled the beginning of the end for the gold standard, formalized this process when the dollar was pegged to gold, and the USD became the world’s reserve currency.
When looking at how much gold central banks store, a common misconception is that these reserves are held domestically. The U.S. maintains the world’s largest gold reserves of 8,133 metric tons, but the Federal Reserve Bank of New York holds a completely separate 6,331 metric tons, composed entirely of physical gold owned by foreign nations.
Although this figure still represents one of the largest stockpiles of gold bars, central banks have been steadily onshoring their reserves for the past 50+ years. In 1973, the New York Fed’s vault housed a record of more than 12,000 metric tons. These reserves have decreased by nearly 50% in the last five decades. France’s expatriation of its American-held reserves is only the latest example.
Why Central Banks Are Pulling Back
Central banks aren’t making these momentous decisions in a vacuum. This international reordering of gold reserves reflects a waning trust in the U.S. dollar as the world’s reserve currency. A damaging combination of widespread dollar weaponization, sky-high national debt, and declining economic output has significantly damaged faith in the USD, fueling a global de-dollarization effort.
This shift away from the dollar is paired with a surge in central bank gold demand. In fact, global gold demand reached a record 5,000 metric tons in 2025. Instead of leaving stockpiles on U.S. soil, governments are increasingly interested in employing their reserves at home.