Germany’s vast gold reserves have become the focus of renewed political and economic debate, as calls grow for part of the stockpile to be used to support households, businesses and public investment.

The German Bundesbank holds 3,350 tonnes of gold, making it the world’s second-largest national reserve after the United States. With gold prices recently rising above $4,700 per troy ounce, the value of Germany’s holdings has climbed to nearly €440 billion.

Marcel Fratzscher, president of the German Institute for Economic Research (DIW), has suggested that some of this reserve could be put to practical use. He described the gold stockpile as a valuable resource in times of economic strain and argued that selling a portion could help fund investments in infrastructure and education, while also easing financial pressure on consumers and businesses.

The proposal comes as Germany continues to grapple with rising living costs. Consumer prices remain elevated, with sectors such as transport seeing particularly sharp increases. Official figures show that the Motorists’ Index, which tracks driving-related expenses, was 6.7% higher in March than a year earlier.

Germany’s gold reserves are not all held domestically. About one-third, or 1,236 tonnes, is stored at the Federal Reserve Bank of New York, while another 404 tonnes is held in London. The remainder is kept in Frankfurt. All reserves remain under the ownership and management of the Bundesbank.

The overseas storage arrangement dates back to the post-war Bretton Woods era, when Germany’s trade surpluses were converted into gold. Although the Bundesbank repatriated 374 tonnes from Paris in 2017, most of its foreign-held gold remains in New York.

That has prompted fresh political scrutiny. Some lawmakers and advocacy groups have questioned whether Germany should continue to keep such a large share of its reserves abroad, particularly in the United States.

The Alternative for Germany party has called for the full repatriation of the country’s gold, while also suggesting it could serve as backing for a future national currency. The proposal has been widely rejected by mainstream parties, which have defended both the security of the reserves and Germany’s commitment to the euro.

Others have focused less on location and more on whether some of the gold should be sold. Supporters of that view argue that the reserves could be used more actively during periods of economic difficulty.

The Bundesbank, however, has consistently opposed any sale. It regards gold as a cornerstone of financial stability and a long-term safeguard for confidence in Germany’s monetary system.

While no immediate policy change appears likely, the discussion reflects growing pressure on policymakers to consider every available option as Europe’s largest economy faces mounting economic challenges.