As the Dutch central bank looks to repatriate some of its gold reserves back from the New York Federal Reserve, Dennis Gartman, the editor and publisher of The Gartman Letter, has questioned what reputational damage this could cause for the U.S.
The Dutch central bank last week confirmed that it was shipping gold from the U.S. to the Netherlands to "spread its gold stock in a more balanced way", adding that it would have a "positive effect on public confidence".
It comes after the Germans made a similar move in 2013, indicating that it would transfer 300 tons from New York by 2020. The Bundesbank has surprised many in the industry, however, by only moving 5 tons last year in what it called a "run-up phase of gold repatriation".
Gartman stressed that it was a complicated issue which "is made all the more complicated by the fact that the Germans have talked about repatriation but have repatriated only a very small sum".