Netherlands takes 86 tons of gold from US, Canada to London

The Netherlands has moved a large amount of gold stored in North America to London amid growing geopolitical instability. A total of 86 tons of gold has been moved from the United States and Canada to the Bank of England, the Dutch central bank (DNB) said on Wednesday (September 2).

The DNB said the gold was transferred from the United States and Canada to London in a complex process that took several months. The Dutch central bank believes that gold held at the Bank of England can be traded relatively quickly and easily in any crisis situation.

"It was essential to take this step to further strengthen our capabilities and preparedness," said DNB President Olaf Schleippen.

The Netherlands' decision comes amid an ongoing trade dispute between the United States and Canada, with both countries recently announcing new tariffs on each other's goods after trade talks failed.

According to DNB, as part of the transfer process that lasted from March to August, 27 tonnes of gold bars were taken from New York and Ottawa to the city of Zeist in the Netherlands. The same amount of gold was then sent from there to London. In this case, the gold bars did not need to be melted.

DNB did not provide details on how the huge amount of gold was transported across the Atlantic Ocean, but said the rest of the transfer was completed by selling gold in New York and then buying an equal amount in London.

"By combining direct transportation with the purchase process, the risks of complex operations such as moving such a large amount of gold have been avoided," DNB said in a statement.

However, the Dutch central bank did not clarify what exactly it meant by 'geopolitical instability'. In the meantime, trade tensions between the United States and Canada are increasing. The United States' tariff policy has put a lot of pressure on Canada's steel, aluminum, lumber and auto industries. In August, it was announced that an additional 50 percent tariff would be imposed on about 28 billion Canadian dollars worth of Canadian goods.

DNB said that gold stored at the Bank of England is considered the most liquid in the world, so it would be easier to access in London during a crisis than in the US or Canada.

Source: BBC