And why does it take 7 years to repatriate 19 % of Germany’s gold reserves?
- Bundesbank to Repatriate 674 Tons of Gold to Germany by 2020 (Bloomberg, Jan 16, 2013):
The Bundesbank will repatriate 674 metric tons of gold from vaults in Paris and New York by 2020 to restore public confidence in the safety of Germany’s reserves.
The phased relocation of the gold, currently worth about 27 billion euros ($36 billion), will begin this year and result in half of Germany’s reserves being stored in Frankfurt by the end of the decade, the Bundesbank said in a statement today. It will bring home all 374 tons of its gold held at the Banque de France and a further 300 tons from the New York Federal Reserve, it said. Holdings at the Bank of England will remain unchanged.
And the other 50%???
Back in the mid-1920s, the head of the German Central Bank, Herr Hjalmar Schacht, went to New York to see Germany’s gold. However the NY Fed officials were unable to find the palette of Germany’s gold bullion. The Chairman of the Federal Reserve, Benjamin Strong was mortified, but to put him at ease Herr Schacht turned to him and said ‘Never mind, I believe you when you when you say the gold is there. Even if it weren’t you are good for its replacement.’ (H/T The Real Asset Company)
Source: The Germans Don’t Trust Obama With Their Gold – And Can You Blame Them? (Telegraph, Jan 18, 2013)
Aaaannd it’s gone …
- Hedge fund managers: The Gold of the Bundesbank’s gone (Deutsche Wirtschafts Nachrichten, July 21, 2013):
The hedge fund manager William Kaye says it’s naive to think that the Federal Reserve would their bearings in the U.S. gold reserves ever get back. The former “German” Gold is no longer as such. U.S. banks have received from the Fed in order to suppress the gold price. The gold stocks entering the market. “Germany will never again see the gold,” said Kaye.