France’s secret gold strategy explained: How Banque de France turned US-held bullion into €12.8 billion profit

France gold profit strategy: France’s central bank has quietly wrapped up a long-running effort to bring its gold reserves back home, and it managed to turn the process into a major financial win.

Why France Sold Gold in New York Instead of Moving It

Instead of physically transporting gold from the United States, the Banque de France took a different approach. Between July 2025 and January 2026, it sold 129 tonnes of older, non-standard gold bars that had been stored in New York, taking advantage of record-high gold prices at the time, as per a report. It then used the proceeds to purchase higher-standard bullion on the European market and stored it in Paris.

How Banque de France Turned Gold Sales into €12.8 Billion Gain

This strategy allowed the bank to avoid the complexity of refining and transporting gold across continents. At the same time, it ensured that its reserves met modern international standards more efficiently. The move was part of a broader modernization effort that has been underway since 2005, as per an Analytics Insight report.

In total, the transactions generated €12.8 billion, contributing significantly to the bank’s financial turnaround. The Banque de France reported a net profit of €8.1 billion for 2025, a sharp reversal from the €7.7 billion loss recorded the previous year, as per the Analytics Insight report.

France Now Holds Entire 2,437 Tonnes of Gold in Paris

With this step, France now holds its entire gold reserve, about 2,437 tonnes, in Paris. The 129 tonnes involved in the latest operation accounted for roughly 5% of the country’s total holdings and were completed through 26 separate transactions.

Governor François Villeroy de Galhau Explains the Decision

Governor François Villeroy de Galhau said the decision was not political but practical, as per the Analytics Insight report. He noted that sourcing gold that meets current standards is easier in Europe than upgrading older bars held abroad.

Gold Modernization Plan: Upgrading Reserves by 2028

France still holds around 134 tonnes of older bars and coins in Paris, which it plans to upgrade by 2028 to ensure all reserves meet the same standards.

Germany’s Gold Debate Reignites After France’s Move

The move has also drawn attention beyond France. In Germany, where a portion of gold reserves remains stored in the United States, some economists have renewed calls to bring those holdings back home. However, no such decision has been announced.

Head of the Association of German Taxpayers and the European Taxpayers Association, Michael Jäger said that, “Trump is unpredictable and he does everything to generate revenue,” adding that Germany’s gold is “no longer safe in the Fed’s vaults,” as quoted by Analytics Insight.

FAQs

Why did France bring its gold back to Paris?
To modernize its reserves and make them easier to manage under current standards.

Did France physically move gold from the US?
No, it sold older gold in New York and bought new gold in Europe instead.