History of Gold in Germany

4 December 1871. A law of 4 December 1871 introduced the mark of 100 pfennig, based on gold, as the common currency of the new German Empire. The 10 and 20 mark gold coins held 0.3584 g of fine gold per mark, and most of the gold came from France's 5 billion franc war reparations.

9 July 1873. Wilhelm I signed the Muenzgesetz on 9 July 1873, abolishing the old state currencies and formally adopting the gold standard. By the end of 1873 the mints had struck gold coins worth about 1 billion marks.

The Reichsbank was created as the central bank of the German Empire, completing monetary unification. Its tasks included minting gold coins and issuing banknotes.

After the great inflation, private ownership of gold was banned in various forms. The ban was only lifted in May 1955.

20 June 1948. The Deutsche Mark replaced the Reichsmark in West Germany on 20 June 1948. The Bank deutscher Laender, set up on 1 March 1948 in Frankfurt, was the new central bank.

West Germany acquired its first 25 tonnes of gold in 1951 as export surpluses began to build reserves. It joined the Bretton Woods system in 1952, when systematic gold accumulation began.

From May 1955 private individuals in West Germany could again legally own and trade gold.

German gold reserves peaked at the end of 1968 at about 129.7 million troy ounces (roughly 4,000 tonnes), the year the London Gold Pool ended. Much of the gold had arrived through the European Payments Union and Bretton Woods settlements.

When the European Monetary System began, the Bundesbank transferred 23.8 million ounces (about 740 tonnes) to the European Monetary Cooperation Fund.

January 1999. With the start of the euro, the Bundesbank transferred EUR 12.2 billion of reserves to the ECB, 15% of it as physical gold (7.46 million ounces). Since then gold has been drawn down only in small amounts for gold coins.

Twelve tonnes of gold were used for a commemorative gold coin marking the end of the Deutsche Mark. From 2001 the Bundesbank released 3 to 11 tonnes a year for German gold coin series.

The Bundesbank decided that from 2020 half of Germany's gold should be stored in Frankfurt. All gold held in Paris (374 tonnes) and 300 tonnes from New York were to be moved home.

23 August 2017. The Bundesbank finished moving 674 tonnes to Frankfurt about three years ahead of schedule. Afterwards 1,710 tonnes (50.6%) were in Frankfurt, 1,236 tonnes in New York and 432 tonnes in London, out of about 3,378 tonnes.

31 December 2025. Rising gold prices lifted the value of the Bundesbank's gold to a record EUR 395 billion at the end of 2025, making gold the main support of its balance sheet.

Margrave Karl Friedrich of Baden let Frenchman Jean Francois Autran open a pocket-watch factory in Pforzheim, which the same year expanded into jewellery and steel goods. This is seen as the start of the 'Gold City'.

16 July 1884. The Fineness Act lets makers sell gold and silver at any fineness, but a stated fineness must be in thousandths, at least 585 for gold, and carry a maker's mark. Germany has no compulsory state hallmarking.

In 1913 about 37,500 of Pforzheim's roughly 75,000 residents worked in the jewellery and watch industry.

23 February 1945. An Allied air raid on 23 February 1945 destroyed Pforzheim and halted the jewellery industry. By 1953 the city was again a leading supplier of jewellery and silverware.

About 70% of the German jewellery industry's turnover is generated in Pforzheim, which also has a jewellery museum (Schmuckmuseum).