Germany is sitting on a goldmine — literally. And one top economist says it's time to cash in.
Marcel Fratzscher, head of the DIW, wants Germany to sell part of its massive €440 billion gold hoard to fund crisis relief, education, and infrastructure. His argument? The gold is an underused buffer while households and businesses struggle with energy shortfalls.
Germany holds about 3,350 tonnes of gold — one of the largest official stocks in the world. Most sits in Frankfurt (1,710 tonnes), with significant chunks in New York (1,236 tonnes) and London (404 tonnes).
Fratzscher calls his proposal "pragmatic" — using an existing public asset instead of borrowing more. But there's a catch: the Bundesbank controls the reserves, and the chancellor can't just order a sale. Any move would require broad political consensus and strict adherence to central bank rules.
Critics warn that selling could move gold prices and leave Germany exposed to future shocks. Others demand transparency on where the money goes.
Fratzscher also took aim at the government's fuel tax cuts ("tankrabatt"), calling them ineffective. His alternative? Car-free Sundays and national speed limits.
The proposal breaks a long-standing taboo. Germany now faces a choice: hold onto its gold as a security blanket, or spend it to ease today's economic pain. 💰🇩🇪
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