France Nearly Earned 13 Billion Euros by Gold Trading
Between July 2025 and January 2026, the Bank of France got rid of 129 tons of gold stored in the United States to repurchase the same amount of gold in Europe.
Initially, the idea was not to distance from a doubtful ally, but rather to modernize France’s gold reserves by exchanging obsolete bullion for internationally standardized bars.
Interestingly, this operation allowed the country to generate an additional €12.8 billion in value! How was this possible?
The Bank of France did not actually increase its gold holdings, which remain at approximately 2,437 tons. The gains announced are the result of a subtle accounting mechanism. The French gold in New York dated back to the 1960s-1970s was sold at a high price in 2025-2026 and then repurchased at a higher cost, resulting in a significant balance sheet gain.
According to Governor François Villeroy de Galhau, this decision was primarily economic and operational, rather than political. The aim was to have more liquid, standardized, and readily deployable gold reserves on the European markets.
The decision to repatriate the gold reserves from the United States marks a historic moment for France. It aligns with a long-term strategy dating back to the 1960s when a significant portion of French gold was already repatriated. The modernization of the remaining gold reserves is expected to be completed by 2028.
The move strengthens the country’s financial sovereignty, ensuring easy access to these strategic reserves without any barriers in times of crisis.
France currently holds a solid position among the top gold reserves globally, ranking fourth on the list.
This decision, although claimed to be non-political, is viewed amidst a tense geopolitical climate. The strategy employed by France is seen as a model of anticipatory sovereignty in the uncertain global monetary landscape.
The historical precedence of France’s strategic decisions related to gold reserves reinforces the current move to secure and standardize its holdings amid global uncertainties.
Several countries, including Germany, the Netherlands, and Austria, have recently repatriated significant amounts of gold from the United States for various reasons, showcasing a broader trend in gold reserve management.
(Sources: Banque de France, RFI, The Gold Observer)
