First, the conclusion: China does store some of its gold in the US, but this isn't a "forced move"; it's a standard practice in the global financial system. Just like keeping your money in a bank close to home, it's not for fear of losing it, but for the convenience of access and transactions.

To understand this, we have to start with the "gold warehouse" hidden underground in Manhattan.

Root 1: Historical foreshadowing, security is the primary reason.

Storing gold in the US isn't a choice unique to China; it's a global "collective consensus" since World War II.

1. New York Gold Vault: The World's "Public Warehouse" of Gold

The New York Federal Reserve Bank's underground vault is buried 20 meters deep in bedrock on Manhattan Island, equivalent to the depth of seven or eight stories. It currently houses nearly 7,000 tons of gold from over 60 countries and international organizations, including part of China's reserves.

This vault was originally chosen because during World War II, European countries, fearing their gold would be destroyed in the war, shipped it to the United States, where its mainland was spared from bombing. The United States became a "safe haven" for gold, and naturally, after the war, it became a central gold storage center.

The vault's security is impenetrable: the door weighs 90 tons and requires three keys to be inserted and turned simultaneously to open. Each country's gold is stored separately in 122 compartments, never commingled, and strict procedures for weighing and testing its purity are followed. The German central bank once calculated that storing gold here would save significant storage and security costs compared to building its own vault.

2. The Dollar-Gold Peg: Storing US Dollars Became a "Trading Necessity"

After World War II, the Bretton Woods system was established, directly pegging the US dollar to gold, and then the currencies of other countries to the dollar. Simply put, international trade at that time required first exchanging one's own currency for US dollars, and then exchanging US dollars for gold or other commodities.

Storing gold in New York made trading incredibly convenient: China didn't need to ship gold bars from China to France for gold settlements with France; it could simply move the gold from a compartment in China to one in France at the New York vault. The handling fee was much lower than the cost of shipping gold bars. This "book transfer" became a common practice in global gold trading.

Root 2: Practical Convenience, the Inevitable "Settlement Center"

Even after the dollar was decoupled from gold, New York remained the "main battlefield" for global gold trading, and its convenience was unmatched.

1. Trading Efficiency: New York is the "Stock Exchange" for gold

80% of global gold trading is conducted in New York. The London Bullion Market Association (LBMA) gold pricing and the New York Mercantile Exchange (COMEX) gold futures trading both require physical gold for settlement.

If the People's Bank of China wants to adjust its gold reserves, for example by purchasing gold from other countries, it can directly settle the gold in a New York vault and receive the gold the same day. If it were to ship the gold back to China and then trade it, the transportation, insurance, and security checks alone would take weeks, and there might also be exchange rate fluctuations. Just like you wouldn't take your money home and then transfer it out when trading stocks, gold trading also requires "local settlement."

2. Cost Advantage: Free Storage + Low Transaction Fees

Even more practically, the New York Fed does not charge a storage fee for gold stored by countries. It only charges a small handling fee for transactions and transfers. This is significantly lower than the cost of building a vault, hiring security, and having it appraised.

For example, building a vault that can store 100 tons of gold would cost hundreds of millions of yuan for construction and security equipment alone, and millions more in annual maintenance costs. For countries that frequently trade gold, storing gold in New York is clearly more cost-effective.

Is it truly safe in the US? Can it be reclaimed?

This is the question everyone is most concerned about, and the answer lies in the "rules" and "practical operations."

1. Clear Ownership: Gold is a "deposit," not a "collateral."

First, let's be clear: ownership of the gold in the New York vault belongs entirely to the depository country; the Federal Reserve is merely a "custodian." Every gold bar in the vault is numbered and marked for purity. Upon deposit, it is repeatedly checked and matched to the depository country's records. The US has no right to use it, and there is no such thing as "seizure."

Germany repatriated 300 tons of gold from New York in 2013 and another portion in 2020—not because it couldn't be reclaimed, but because it was found more convenient for trading. Japan, Italy, and other countries have similar practices, each tailored to their needs.

2. Risks are indeed changing: China is "diversifying its reserves."

But the situation has changed in recent years: the US national debt has exceeded $36 trillion, with debt-to-GDP ratio exceeding 123%, and the creditworthiness of the US dollar has been declining. Central banks around the world have been quietly adjusting their gold reserves. In 2024, global central banks net purchased 1,044.6 tons of gold, a record high.

China is also "diversifying its reserves": from January to April 2025, it imported 181 tons of gold, with April alone seeing a 73% surge in imports. Swiss customs data shows that 553 tons of gold were shipped directly to China in 2024, accounting for 40% of annual imports. This means that China is bringing more gold back home and increasing its domestic reserves.

Data from the State Administration of Foreign Exchange of China shows that China's gold reserves have increased for six consecutive months, increasing by nearly 1 million ounces in six months. This isn't a fear of not being able to repatriate US gold, but rather an effort to optimize its reserve structure. Just as you wouldn't keep all your money in one bank account, a country wouldn't keep all its gold in one place.

Not "forced to store gold in the US," but a "rational choice"

Looking back at the issue of "China storing gold in the US" now becomes much clearer:

• It's not "forced" by the US to store gold, but rather a historical practice established after World War II;
• It's not "unsafe," but rather clear ownership, convenient transactions, and lower costs;
• It's not "unretrievable," but rather the decision to store gold is based on trading needs, and reserves are now being gradually diversified.

People's concerns about the safety of gold are essentially concerns about the protection of national wealth. However, China's gold reserve strategy has always been clear: some is stored in New York for convenient trading, some is shipped back home to strengthen its foundation, and holdings are continuously increasing—in April 2025 alone, 127.5 tons were imported, equivalent to 11 frigates compressed into gold bars and stored.

In fact, the location of gold storage has never been the core of wealth security. During World War II, the United States relied on its strength to become a "gold safe haven." Now, countries are increasing their gold holdings and diversifying their reserves, which is essentially an adjustment to their "reliance on a single currency."

China is currently "putting its eggs in different baskets" and promoting the internationalization of the RMB—by signing currency swap agreements with multiple countries and settling commodities in RMB, gradually reducing its reliance on the US dollar. As the RMB's influence in international transactions grows, it will have greater control over where and how to store its gold.

So, there's no need to worry about "storing gold in the US": it was once a convenient option for transactions, but is now adapting to the changing global financial landscape. True wealth security has never relied on "hiding gold" but on a nation's economic strength and financial influence. China is demonstrating this through action.