Why are European countries moving their gold out of North America?
Saturday, 5 September 2026
Warm-up
- Where do countries keep gold, and what risks do they think about?
- When might you move savings to feel safer? Why?
- What makes a city a good place to trade gold?
Vocabulary
- relocate
- to move something from one place to another for a reason
- vault
- a strong, secure room where valuable things are stored
- custodian
- an organisation that safely holds assets for others
- geopolitical
- relating to politics between countries and regions
- diversify
- to spread things across places or types to reduce risk
- reserve
- money or assets kept for future or emergency use
- commodity
- a basic good, like gold or oil, that is traded
- resilience
- the ability to handle shocks and recover quickly
Reading
The Netherlands relocated 86 tonnes of gold from North America to London. Its central bank said the move would make the country better prepared for severe crises amid increasing geopolitical unrest. London was chosen so the metal can be traded quickly in a crisis, keeping it close to markets.
From a combined 313 tonnes in the US and Canada, holdings were reshaped between March and August. Some was sold in New York and bought in London to avoid a long haul. Analysts say inflation, interest rates, and how to manage reserve assets also mattered. Gold is a global commodity, so location can reduce risk.
The Bank of England is a major custodian, with about 400,000 bars in its vaults worth over £200bn. Central banks are diversifying storage: France brought reserves home, and Germany shifted 216 tonnes from abroad, finishing in 2016. Keeping gold at home raises costs, but it may build resilience.
Comprehension
- How many tonnes did the Netherlands move to London?
- Why was London chosen for the relocation?
- What other factors influenced the decision besides geopolitics?
- Which other European countries changed where they store gold?
- Roughly how much gold does the Bank of England hold?
Grammar focus
Modals for past deduction
Use modal + have + past participle to make a deduction about the past. "must have" = strong certainty; "might/could have" = weaker; "can't have" = impossible. (Examples constructed.)
- Analysts **must have thought** the move reduced risk.
- The relocation **can't have been easy** for staff.
Grammar exercise
Complete each sentence using a modal for past deduction (must/might/can't).
- After reports, the bars (relocate) ___ before then.
- Seals were intact, so the shipment (be) ___ tampered with.
- Analysts said the move (reduce) ___ risk by then.
- No flights were delayed, so transit (take) ___ the usual route.
- No records were found, so reserves (adjust) ___ before now.
Discussion
- Is it safer to keep national gold at home or abroad? Why?
- Should central banks diversify storage across several cities?
- Does London's role help your country in any way? How?
- When might gold be a better asset than cash or bonds?
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