German central bank: We’re still taking back our bullion
In November, the Dutch central bank has secretly brought 120 tonnes of gold, valued at nearly $5 billion, of the European nation’s gold reserves held in New York back to Amsterdam.
The Netherlands seems to have been much more successful in their attempts to repatriate bullion held in New York than the Germans, which has reserves of 3,387 tonnes, second only to the United States.
In January 2013 Germany’s central bank, the Bundesbank, said it will ship back home all 374 tonnes it had stored with the Banque de France in Paris, as well as 300 tonnes held in Manhattan by the US Federal Reserve, by 2020.
Fast forward two years and Buba, as the Federal Bank of Germany is often called, only managed to bring home a paltry 37 tonnes of gold, a mere 5 tonnes of that came from the US, the rest from Paris.
Then in June the ruling Christian Democratic Party headed by Angela Merkel, seemed to give up on the endeavour altogether, removing a possible irritant in US-German relations.
Perhaps not entirely.
As reported this week by Koos Jansen at BullionStar – one of the best trackers of physical gold flows around the globe – according to Buba, all’s going to plan with Germany’s repatriation plans:
“We are within our plan with our delivery of gold from the Fed and the Banque de France,” BuBa-executive Carl-Ludwig Thiele told the German Press Agency dpa in Frankfurt.
Source: The World Gold Council.
Peter Boehringer, founder of Repatriate Our Gold in Germany told Jansen “every number below 70-100 tonnes would be shamefully little – and therefore this is exactly the range I am expecting in the final announcement with numbers (due early 2015).”
While a much-anticipated Swiss referendum to repatriate the country’s gold, force the central bank to keep 20% of its reserves in bullion and stop all sales were voted down, the French may be next in line.
Last month it emerged that the frontrunner for France’s presidency, Marine Le Pen, has asked the central bank to urgently repatriate its gold reserves and immediately discontinue any gold sales programmes.
In May last year Austria, perhaps unnerved by Germany’s experience with their bullion and mindful of Brown’s Bottom, sent a team of auditors to check on gold held by the Bank of England.
Only 17% of Austria’s 280 tonnes of gold reserves are held inside the European nation with the Bank of England holding the bulk or some 150 tonnes worth more than $6.2 billion.
In November 2011, Venezuela repatriated some 180 tonnes of gold held in vaults in London and elsewhere to store it with the Caracas central bank under orders from late President Hugo Chavez.
{{ commodity.name }}
{{ post.title }}
{{ post.date }}
4 Comments
amadeusk331 .
I don’t know what is more pathetic; the government lying to everyone saying they have over 8000 tonnes of gold in their “reserves”, or that people actually believe such garbage. There is no gold at the FED; the only gold the US has is a measly sum at the treasury which they use for minting coins. The said gold is long gone; liquidated during the end and after the end of Bretton-Woods. All hat gold is now in Europe in Rothschild vaults, Chinese (and other Asian) national reserves, under Indian mattresses and safety deposit boxes and in Russian strongholds… Western society is too stupid to realize the value of gold and how it works as an insurance policy for nations that hold power…That’s why CNBC and their mindless media whores are out there touting the most useless of financial instruments (equities, and worthless paper)…and the average bozo on the street is more than content with losing 25% per decade via inflation on their savings in banks which pay them nothing. Asia and Russia and some competent European countries’ populations save gold and silver… The majority of the population, the morons like the US or Canada, UK, Australia and other Anglo-Commonwealth countries, are happy saving pieces of paper and electronic numbers that lose value monthly…That’s why these people will get wiped out at the next currency reset. GOLD and SILVER have NEVER failed – throughout 6000 years of human civilization… FIAT money has ALWAYS, faied, and those holding it (with no tangible assets or commodities) have lost everything.
chris baus
The governments and the banks do not want gold because it keeps inflation in check and prevents money printing. This is against the current economic theories that inflation of 3-4% is needed to demonstrate the GDP growth. This would not be possible with gold as a base. This is the reason that the banks and the governments do want gold to stop being assurance of value.
But what a choice an investor has knowing that what happen in Cyprus is going to be legislated in G20 countries according to their commitment in Brisbane? Only to put their wealth in assets which are small and can hold value. And gold is on top of the list. It is far safer to keep gold than to know ,that in the time of crisis the government/bank can legally take your saving away as it happen in Cyprus. And G20 is committed to make it legal. In time of crisis you on your own.
It is then up to people to decide, not the governments. The West reliance on debt leads to abandoning savings and loosing the sight of gold positions. In Asia where saving is a must, gold is part of wealth preservation. Which concept wins? Well knowing that China and India are half of globe population and Indonesia is not far behind the bet is that gold will stay as it did for thousands of years. No wonder that the Dutch got their gold back. Dutch are smart – if it doesn’t matter then better if it is in the country. I would not believe any PR from Buba, their talk is like Putin’s: say to calm the public. This actually may mask serious trouble for Buba.
Geo in To
I am Canadian. Where are our gold reserves? We are not listed in the top 10! We are a producing nation and I would like if our governments build up our gold reserves.
joseph
it is not the government’s gold here in USA…the gold belongs to the Central Bank…Ft Knox is empty of US govt gold. What is there belongs to Federal Reserve…and next, for our American students only, the USA is located on the “North” American continent…..