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Thread: Gold: German Bundesbank Begins Officially Repatriating Gold From The Fed

  1. #1
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    Gold: German Bundesbank Begins Officially Repatriating Gold From The Fed

    German Bundesbank Begins Officially Repatriating Gold From The Fed

    January 15, 2013, at 10:22 pm
    by Jim Sinclair in the category General Editorial | Print This Post | Email This Post
    My Dear Friends,

    According to Handelsblatt, a respected publication, Germany is serious about repatriating significant amounts of gold held outside of Germany, mostly by the Federal Reserve. This sends a message about storing gold near you and taking delivery no matter who is holding it.

    When France did this years ago it sent panic amongst the US financial leadership to the degree of monetary aggression. Why? The inviting question has always been does the US have fungible gold assets to the degree claimed.

    Have you signed the petition for audit of US Gold that Bix sent you yesterday?



    ReservenBundesbank will deutsches Gold zurückholen

    14.01.2013, 21:07 Uhr

    Nach der Gründung der Bundesbank wurden große Teile der deutschen Goldreserven aus Sicherheitsgründen bei den Alliierten deponiert. Nun soll das Gold aus New York und Paris zurückgeholt werden.

    FrankfurtDie Bundesbank hat ein neues Konzept ausgearbeitet, wo sie künftig ihre Goldreserven lagern will. Nach Informationen des Handelsblatts sieht dieses Konzept, das am kommenden Mittwoch bekanntgegeben werden soll, vor, den heimischen Standort aufzuwerten, in New York dafür weniger Gold zu lagern und überhaupt kein Gold mehr in Paris zu horten.

    Damit reagiert die Notenbank auch auf einen Bericht des Bundesrechnungshofes, der die Jahresabschlüsse der Bundesbank prüft und ihr empfohlen hatte, ein aktuelles Lagerstellenkonzept zu erstellen und zu dokumentieren.


    Charles De Gaulle was the first person in modern history to call the hand of the USA on its then obligation to convert French held dollar reserves into gold. I was a senior trader at the time.

    History will look back on this salvo fired across US war financing as being the beginning of the end of the US dollar as the reserve currency of choice.

    The reaction on the part of the US was to cut the tie between the dollar and convertibility. This again raises the question of does the USA have fungible gold to the degree that is claimed without 3rd party audits or any viewing publicly whatsoever.

    If it is true as reliable sources today reported that Germany wishes to repatriate a significant amount of its gold, then that request is a modern version of the first salvo that Charles de Gaulle fired at the US treasury over convertibility.

    Assume that no close violated Alf’s downside price and it is possible that today’s revelation concerning Germany is an event leading to gold’s first main target above the recent high of $2111. It is significant because under normal circumstances no major central bank would insult another major central bank in that manner.

    Today’s report, if true, is a salvo fired at the concept that the USA has all the gold it claims and all the gold it stores for others. If true, this event is the most important gold development since Charles De Gaulle called the US hand that it would stand by convertibility which many then assumed it could not because even then the amount of gold held was publicly questioned.

    Please review the following video of Charles De Gaulle


  2. #2
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    Oct 2008
    Bundesbank to pull gold from New York and Paris in watershed moment

    Germany’s Bundesbank is to repatriate gold reserves held abroad to tighten control and combat currency crises in the future, pulling a chunk of its holdings from New York and all its bullion from Paris.

    The Bundesbank holds just 13pc of its total holdings at the Bank of England Photo: Alamy

    By Ambrose Evans-Pritchard

    7:56PM GMT 15 Jan 2013

    The move marks an extraodinary breakdown in trust between leading central banks and has set off ferment among gold enthusiasts, with some comparing it with France’s withdrawal of gold from the US under President Charles de Gaulle as the Bretton Woods currency system crumbled in the late 1960s.

    Handelsblatt said the Bundesbank will announce on Wednesday that it intends to relocate the gold to vaults in Frankfurt, said by insiders to include parts of the old archive library. Germany has 3,396 tons of gold worth roughly £115bn, the world’s second-largest holding after the US. Most of the reserves were stored abroad for safety during the Cold War.

    The bank holds an estimated 45pc of its gold at the US Federal Reserve in New York, and 11pc at the Banque de France, lower than originally thought.

    A report by Germany’s budget watchdog in October revealed that the bank halved its holding in London a decade ago, a period when the Bank of England was selling part of Britain’s gold at the bottom of the market to buy euros.

    The gold was purportedly withdrawn because London was charging €500,000 a year in storage costs. The Bundesbank said part of 930 tonnes brought back was melted down for checks, and "not one gram was missing". It currently holds just 13pc of its total holdings at the Bank of England.

    The Bundesbank says there is little reason to keep gold in Paris now that Germany is reunified and at peace. The bank will retain some reserves in London and New York for trading and liquidity purposes.

    "Gold stored in your home safe is not immediately available as collateral in case you need foreign currency," said Bundesbank board member Carl-Ludwig Thiele late last year.

    "Take, for instance, the key role that the US dollar plays as a reserve currency in the global financial system. The gold held with the New York Fed can, in a crisis, be pledged with the Federal Reserve Bank as collateral against US dollar-denominated liquidity. Similar pound sterling liquidity could be obtained by pledging the gold that is held with the Bank of England."

    The latest shift in strategy follows criticism by the German Court of Auditors, who said in a confidential report that the gold held abroad had "never been verified physically" and was not under proper control. A growing chorus of lawmakers in the Bundestag has demanded a return of all Germany’s gold in case the financial crisis escalates.

    Veteran gold trader Jim Sinclair said the Bundesbank’s move is a pivotal event in the gold market and the latest warning for investors that they should keep metal bars under their physcial control, rather than relying on paper contracts.

    "This sends a message about storing gold near you and taking delivery no matter who is holding it. When France did this years ago it sent panic amongst the US financial leadership. History will look back on this salvo as being the beginning of the end of the US dollar as the reserve currency of choice," he said.

    Many analysts say the world is moving towards a de facto gold standard again as China, Russia and other reserve powers boost their holdings to diversify out of dollars and euros.

    Unlike Britain, Spain, Switzerland, Holland and others, Germany did not sell any of its gold when bullion was out of fashion. Nor did Italy. The two countries are now sitting on very substantial reserves that are starting to take on political significance.


  3. #3
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    Oct 2008
    Germany looks to repatriate gold; less trust in Fed?

    Germany looks to repatriate gold; less trust in Fed?

    16th Jan 2013 Barbara Koilmeyer

    MADRID (MarketWatch) — Goodbye, Big Apple. Adieu, Paris. It seems the Bundesbank could finally be ready to bow to some longstanding public pressure and bring its foreign gold reserves home.

    Germany’s Handeslblatt newspaper claimed Monday night that the Bundesbank has developed a new strategy that involves fewer gold bars flung afar. The original reason for holding its gold at the New York Federal Reserve and other central banks — in places for decade as a measure of security — no longer holds, the newspaper said.

    The central bank’s press office said a news conference is planned for Wednesday morning, and the topic will be gold reserves. See the full story in Handelsblatt (needs translation) .
    Click to Play
    German economy contracts

    The German economy contracted by a larger-than-expected 0.5% in the fourth quarter of 2012. With exports slowing and the euro rising, any recovery for Germany or the rest of the euro zone in 2013 will be gradual.

    The relationship between a central bank and its gold are closely watched by gold investors, since central banks hold so much of the world’s bullion supply. The Bundesbank’s expected move, and the possibility of more details, renewed questions over the size of the central bank’s holdings and what it plans to do with it -- particularly as Europe wrestles with a prolonged economic crisis.

    “People have gotten a sense of how bad things could become and gold is the ultimate means of payment. The euro won’t last forever, [and] gold, for various reasons, is the anchor,” said Thorsten Polleit, Frankfurt-based chief economist at Degussa, a precious-metals firm.

    What’s more, the report sparked a flurry of speculation that Germany had grown more uneasy with its U.S. counterpart, whose government is meanwhile facing a fierce fight over raising the debt ceiling.

    At a time when trust in official institutions is waning, “perhaps your reserve assets are safer at home — after all, the U.S. reaches a debt ceiling in about six weeks’ time and failure to see it extended would put the U.S. and the dollar in default,” said Ross Norman, chief executive of precious-metals news and information provider Sharps Pixley, agreed the Bundesbank can’t be blamed. Read Der Spiegel on Germans fretting about their foreign gold reserves.

    Lifting the veil

    The public has been long demanding an audit of the German gold reserves and repatriation of those reserves, Degussa’s Polleit said. Some fuel was thrown on that fire in the last year by the financial crisis.

    But the Bundesbank traditionally keeps a veil of secrecy around gold. It hasn’t had its worldwide reserves audited down to the last bar for decades, if ever, Polleit noted. So it may be a bit of a mystery just what is in the vaults of the New York Federal Reserve, which holds a 45% chunk of Germany’s gold reserves. The Bank of England and the Bank of France hold 13% and 11% each. The Bundesbank itself holds 31% of those reserves.See more on the Deutsche Bundesbank's gold holdings as per Dec. 31

    Deutsche BundesbankEnlarge Image

    By country, Germany has the largest gold holdings behind the U.S.

    “In recent years it’s been quite popular to swap gold stocks for holding government bonds. ... There’s no exact data but some fear gold could have been lent out. It might still be there in physical terms but its kind of hard to decide who is the actual owner,” said Polleit. He said the Bundesbank has said some bars might have been checked, but not the total stock. Read what the Bundesbank had to say about auditing last October.

    Still, Polleit isn’t expecting some “aha” moment from the Bundesbank to have any effect on physical prices. He expects gold will hit $2,070 an ounce this year on the view that governments are printing ever great amounts of money.

    On Tuesday, gold futures GCG3 -0.52% traded above $1,680 an ounce on the Comex division of the New York Mercantile Exchange, poised to finish at a nearly two-week high.See: Gold, platinum near par.

    Rationalizing the move

    The central bank’s moves also raised the notion that trust was deteriorating among the world’s big central banks, even between close allies.

    While it’s “one thing for a ‘crazy, lunatic’ dictator such as Hugo Chavez to pull his gold out of the Bank of England, it is something entirely different, and far less dismissible, when the bank with the second most official gold reserves in the world proceeds to formally pull some of its gold from the bank with the most,” wrote financial blog ZeroHedge. Read article on ZeroHedge

    In 2011, Venezuela’s combative president Hugo Chavez ordered the repatriation of 85% of the country’s gold reserves, mostly from European central banks, a move Chavez said would protect his nation’s bullion in times of economic turbulence. Read more on Chavez's gold repatriation.

    PIMCO founder Bill Gross wondered, over Twitter Tuesday, whether a possible move to repatriate gold by the Bundesbank might be a sign “central banks don’t trust each.” See Tell Blog on Gross' Tweet about gold.

    The notion that the Federal Reserve can’t be trusted to protect a nation’s wealth is a familiar one in the gold market, where some buyers have sought an asset protected from what they view as dangerous monetary policy that will eventually impale the U.S. dollar .

    The Bundesbank bringing its gold home isn’t a negative for the market -- just the contrary, said Carsten Fritsch, senior commodity analyst at Commerzbank AG.

    “If at all, than it shows that confidence in gold is rising,” he said. “Gold is the currency of last resort. It is therefore better to have it at home.”

    Barbara Kollmeyer is an editor for MarketWatch in Madrid. Follow her on Twitter @bkollmeyer.

  4. #4
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    Oct 2008
    More on Germany's repatriation of their gold from the Fed

    Our oldest granddaughter Molly is taking college courses in Barcelona this winter. One of her classes is on democracy in Western Europe. She learned that over 30% of French citizens support the Skin Heads (a.k.a a later-day version of the Hitler Youth, right on down to their use of the Swastika) because they want all foreigners out, starting with the Muslims from North Africa and of course, the Jews. The Skin Heads are responsible for overturning head stones in Jewish cemeteries and for attacks on Jewish students and elderly. Usually, nothing is done. The more things change, the more they stay the same. Why would any Jew still want to live in France? Beats me! Are we already forgetting the lessons of WW2? It seems like some of the French have. I think it's going to be a very long time before I see Paris again!

    Check it out. Platinum is now selling at the same price as gold. Spot price for an ounce of either is about $1,680. Last spring I suggested our readers buy platinum, which at the time was selling for $150 an ounce less than gold. It turned out to be a very good time to buy platinum.

    In today's daily, Jim Sinclair, Bill Murphy (LeMetropole Cafe) and Andy Hoffman add to yesterday's discussion on Germany's repatriation of her gold. This has the potential to set the gold market on fire. Today it will be interesting to see what the "official" statement from the Bundesbank says. If the published rumors are accurate, then today could be gold's Fourth of July with all the fireworks that go with it. It will bring to the forefront the issue of whether the US really owns all the gold that they claim to have stored at Fort Knox, but never allows an independent audit to verify that its really there. If the unthinkable occurs, and we really have sold and leased out our gold, where will the US come up with one half of a year's supply to satisfy the Germans? And if they have to go into the market to source it, what will happen to the price? And what will happen to the credibility of the Fed and the dollar?

    Personally, I expect delays, excuses and games to be played, but no immediate delivery back to Germany. That is all it will take for gold to soar. This event may set off an avalanche of similar requests to repatriate gold stored at the Fed by numerous smaller countries. It's going to be put up or shut up time for the Fed. This one can't be swept under the rug. Who knows? Maybe the Fed will come up with the gold and silence the "conspiratorial" voices among us. Bix must be on the edge of his seat this morning! And Murphy too!

    Here is what Ranting Andy had to say:ALL POLITICIANS ARE LIARS; and thus, it shouldn't have surprised anyone when this SHOCKING, WATERSHED ANNOUNCEMENT emerged last night; that the Bundesbank has demanded most - if not all - its New York and Paris-stored gold to be returned to Frankfurt...It Begins: Bundesbank to Commence Repatriating Gold from New York Fed

    In other words, the German FEAR of American CORRUPTION became too much to bear; so much so, they "called the Fed out" in front of the ENTIRE WORLD. And better yet - in perhaps Zero Hedge's GREATEST ARTICLE OF ALL TIME - they finally acknowledged the GRAND SCALE of WESTERN GOLD MANIPULATION...

    In simple game theory terms, the first party to defect from the prisoner's dilemma of all the bulk of global gold being held by the Fed, defects best; then the second, and the third. Until, in this particular case, the last central bank to pull its gold from the NY Fed and the other 2 primary depositories of developed world gold, London and Paris, just happens to discover their gold was never there to begin with; and instead, served as collateral to paper gold subsequently re-hypothecated several hundred times, and whose ultimate ownership deed is long gone.

    I CANNOT OVEREMPHASIZE THE IMPORTANCE OF THIS HISTORIC EVENT; once and for all, PROVING the Fed is not considered thebastion of freedom and financial strength decades of PROPAGANDA have purported. Not to mention, the likely ramifications of such aprofound disclosure...-Tuesday Morning Commentary 1/15/2013

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