A decade ago, when a Financial Times reporter asked to view the famed gold vaults buried beneath the New York Federal Reserve, the answer was a firm no. The vault, sunk 80 feet into Manhattan’s bedrock and home to 507,000 gold bars, is a point of pride — and secrecy — for the Fed, with much of the bullion belonging to nations like Germany and Italy.
But today, that silence is breaking.
In recent weeks, political figures in Germany and Italy have reignited demands for the repatriation of their gold — worth an estimated US$245 billion — amid growing distrust towards the U.S., particularly under the administration of President Donald Trump. The Taxpayers Association of Europe voiced concern over potential interference by Trump in the independence of the Federal Reserve.
Although no gold has visibly left American soil, and neither the Fed nor European governments have acted, the calls reflect deepening cracks in transatlantic financial trust. Ironically, since Trump’s election, gold inflows into the U.S. have accelerated, prompting speculation — without proof — that U.S. agencies may be stockpiling bullion alongside private investors.
The original reason for housing foreign gold in New York was trust in America’s stewardship of the Western-led, dollar-based financial system. But now, voices within Trump’s team, such as Stephen Miran, Chair of the Council of Economic Advisers, and Scott Bessent, Treasury Secretary, are questioning the very foundations of that system, calling it too costly for the U.S.
That shift has global implications.
In Asia, the trend is already visible. Gold purchases are rising sharply, and volatility in Hong Kong’s markets hints at reduced appetite for dollar-denominated assets. Meanwhile, China is advancing the use of the renminbi in trade and expanding its Cross-Border Interbank Payment System (CIPS) to rival the U.S.-controlled SWIFT.
Another key development is the mBridge initiative — a central bank digital currency project launched in 2023 by the Bank for International Settlements (BIS). After Washington pressured BIS to withdraw, China seized control, a move some see as a strategic misstep by the U.S.
Europe, by contrast, has been slow to react. But voices like François Heisbourg are now calling for a “post-American Europe,” not just militarily, but economically. Some analysts, including Elmar Hellendoorn at the Atlantic Council, are pushing for “geofinance,” warning that Europe has become financially dependent on Wall Street, subject to U.S. law and influence. Former Italian Prime Minister Enrico Letta even warns Europe is becoming a “financial colony.”
The European Commission is attempting to push back by fast-tracking a unified capital market, while the European Central Bank (ECB) is developing a digital euro. But the U.S. is countering with dollar-based stablecoins, a move Scott Bessent believes could generate trillions in new Treasury demand.
Still, ECB President Christine Lagarde admits these efforts are not enough to produce a “global euro moment” — unless provoked by crisis, such as a collapse in confidence in the dollar or aggressive U.S. moves against Europe.
Which brings us back to that Manhattan gold. If tensions escalate, it’s not unthinkable that U.S. leaders could use foreign gold held on American soil as collateral for dollar swaps — or as leverage.
Publicly, the Bundesbank remains calm. “We have no doubt that the New York Fed is a trustworthy and reliable partner,” it told the Financial Times. But the very fact that these scenarios are being discussed suggests a new era of strategic gold realignment may be dawning.
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