Germany Wants (a tiny bit) of it’s Gold Back

Ger­many wants it’s Gold Bul­lion Reserves back.

German gold bullion coin

Ger­man gold bul­lion coin

Ger­many has the sec­ond largest gold reserves in the world. Or at least it should do. A quick look at the Wikipedia gold reserves chart shows that as of year end 2011 total offi­cial hold­ings are 3,396 met­ric tonnes of gold.

Gold Bul­lion Reserves of top 10 nations

The thing is, as with most cen­tral banks (that are not BOE, or Fed­er­al Reserve) some por­tion of these reserves are held off-shore. This is most­ly a rel­ic of Nixons tyran­ni­cal dis­man­tling of the gold stan­dard back in 1971 (August 15th — A very Black Day), when gold was actu­al­ly used for set­tle­ment, and if not shipped at least moved from one part of the vault to anoth­er (I kid you not).

Any­way, back to Ger­many. They want their gold back. Who wants their gold back? Good ques­tion, depends who you ask:

Here are the play­ers:

* The Peo­ple (Das deutsche Volk) — Would like their gold back
* The Bun­des­bank — Seem strange­ly ambiva­lent about the whole affair
* Ger­man Par­lia­ments Bud­get Com­mit­tee — pushed by the peo­ple to take action
* Ger­many Audit Court — pushed the Bun­des­bank to do some­thing by the Par­lia­ment
* Fed­er­al Reserve Bank of New York — claim it’s too secure to audit

After years (maybe decades) of ask­ing, they have got to the point that our good old friends at the Fed­er­al Reserve stat­ed that it would not be pos­si­ble

in the inter­est of secu­ri­ty and of the con­trol process”.

Excuse me?

Imag­ine going to your bank to get a bank bal­ance, ask­ing to see your safe deposit box (you do have one right?), or oth­er­wise access to your prop­er­ty and then being told — “No. In the inter­est of secu­ri­ty and of the con­trol process”. How would you feel? How would you react? What would you do next?

Ger­many is believed to have approx­i­mate­ly 2,000 tonnes (a lot) over­seas in for­eign cen­tral bank (evil corp) vaults: Fed­er­al Reserve, BoE, Bank of France. Notice a con­nec­tion between those names? Yeah, they are the so called *Allies* at the end of the 2nd World war (Rus­sia strange­ly miss­ing). How help­ful they were to pro­tect Ger­ma­nies Gold in it’s vul­ner­a­ble state after the end of the war. Here is an inter­est­ing pic­ture of US Sol­diers from 1947 in Ger­many get­ting ready to export that wealth — for safe keep­ing (for the record — Gen­er­al Pat­ton Third Army unit — 1947):

US Soldier in 1947 removing German Gold Bullion Reserves to America

US Sol­dier in 1947 remov­ing Ger­man Gold Bul­lion Reserves to Amer­i­ca

Res­o­lu­tion — It seems that the Bun­des­bank (prob­a­bly not the Ger­man peo­ple) are quite hap­py to work out the details off-line over time and deter­mine what to do next :

The dis­cus­sions have been fruit­ful and the Fed­er­al Reserve has expressed a com­mit­ment to work with the Bun­des­bank to explore ways to address the audit obser­va­tions, con­sis­tent with its own secu­ri­ty and con­trol process­es and logis­ti­cal con­straints.”

It also appears that they have lots of trust in their US com­pa­tri­ots:

had no doubts about our Amer­i­can part­ners, at no point in time. For us it’s a ques­tion of reg­u­lar­i­ty and how we’ll pro­ceed in the future”

Why?

With this much mon­ey at stake — how would you accept any­thing oth­er than an audit? The gold have nev­er been audit­ed once since it was moved to US. No won­der the Ger­man peo­ple are furi­ous about this — I know I would be.

In the mean­time the Bun­des­bank has come up with an incred­i­bly under whelm­ing solu­tion — repa­tri­ate 50 tonnes of their Gold every year for three year. Oh, so that would be a grand total of 150 tonnes…Leaving let’s see…2,000 — 150 is about 1,850 tonnes unex­am­ined, unau­dit­ed, and unproven. There is some­thing fishy going on here.

If you believe that the big guys (Fed­er­al Reserve, BoE, etc) real­ly do not have any gold left any­more, and let’s sup­pose fur­ther that the Bun­des­bank either know or sus­pect this, then maybe this is a “get me off the hook” move. This would give the Fed­er­al Reserve time to buy Gold on the open mar­ket and ship it back to Ger­many — a rea­son­able amount. The illu­sion is main­tained that all is well. I sus­pect this is what is going to hap­pen. Maybe even the Audit court, and the Ger­man Bud­get Com­mit­tee know this too?

Ques­tions to pon­der:
* If the gold real­ly is gone — where is it now?
* If the gold is gone was this done with or with­out the knowledge/permission on the Bun­des­bank?
* Which coun­tries will be next to move on this *touchy* sub­ject?

One oth­er thing — A sim­i­lar move has been request­ed in Switzer­land to repa­tri­ate their off-shore gold reserves. This will become very inter­est­ing because in Switzer­land the peo­ple have the right to a ref­er­en­dum (just need 50,000 peti­tion) on any top­ic they so wish.…Things should be hot­ting up soon…

Stay tuned, buy phys­i­cal gold and sil­ver, store it wise­ly, and start think­ing hard and deep, and take action…More about that soon

Ref­er­ences:
* http://en.wikipedia.org/wiki/Gold_reserve
* http://www.spiegel.de/wirtschaft/soziales/rechnungshof-fordert-bundesbank-zur-inventur-der-goldreserven-auf-a-862719.html
* http://www.businessweek.com/news/2012–10-25/new-york-fed-to-help-bundesbank-meet-gold-audit-requirements

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