Dutch Central Bank Orders Pension Fund To Sell Its Gold

[Bullion_Bob]

Got gold...better yet...got silver? Barbarous relics!!!!!! :D

http://www.zerohedge.com/article/here-comes-executive-order-6102-qe-generation-dutch-central-bank-orders-pension-fund-sell-it

"Perhaps the most stunning example of what may be in store for asset managers and pension funds (and possibly retail holders) who dare to challenge central bank monetary authority comes from the Netherlands, where we have just witnessed the 21st century equivalent of Executive Order 6102.

The story in a nutshell (and as translated loosely from the primary source presented below): the glassworkers pension fund (SPVG) was ordered by De Nederlandsche Bank (DNB, or the equivalent of the Dutch central bank), that it has to sell the bulk of its gold assets. After the SPVG refused to comply with the order, the DNB went to court and the decision has come out, siding with the central bank, ordering the SPVG to sell the required gold within two months.

The pension fund, which invests for 1142 employees, in late 2009 had gold bars worth 34.6 million euros, or about 1400 kilograms. The total fund assets amounted to 288 million euros at that time. The DNB argued gold is a commodity and holding 13 percent was overweight in comparison to the 2.7% average that pension funds are invested in commodities.

DNB has found that such a large proportion of gold is inconsistent with the interests of the participants. SPVG sees gold as a medium of exchange, such as euros, but DNB believes that the price of gold fluctuates too much for it to be classified as an investment. Translation of the translation: the central bank has now directly ordered a fund how to allocate its gold assets, because it explicitly disagreed with the fund's statement that gold is money, claiming instead that it is nothing but a very volatile commodity. Very soon no pension funds in the Netherlands will be allowed to hold any amount of gold more than the merely nominal.

This latest gold confiscation equivalent event is most certainly coming to a banana republic near you."

[chad]

mark my words, this will be done here, only worse. someday they'll make you invest x% of your 401k in treasuries because "they're safe."

[ShortJohnSilver]

Will this lead to a black market (the free market) I wonder?

[ximmy]

mark my words, this will be done here, only worse. someday they'll make you invest x% of your 401k in treasuries because "they're safe."


hey man... the FED has to do something with all those treasuries... ::)

Fed Surpasses China In U.S. Treasury Holdings
Qe2 at work...
"At the Federal Reserve Bank of New York, Brian Sack and his NYU interns have bought so many Treasury securities that the Fed now owns more U.S. debt than anyone else in the world, including China. China currently holds $896B. Japan owns $877B. And the Fed comes in at $1.108 TRILLION, and no sign of letting up."
http://dailybail.com/home/chart-fed-surpasses-china-in-us-treasury-holdings.html

[steyr_m]

Got gold...better yet...got silver? Barbarous relics!!!!!! :D

http://www.zerohedge.com/article/here-comes-executive-order-6102-qe-generation-dutch-central-bank-orders-pension-fund-sell-it

"Perhaps the most stunning example of what may be in store for asset managers and pension funds (and possibly retail holders) who dare to challenge central bank monetary authority comes from the Netherlands, where we have just witnessed the 21st century equivalent of Executive Order 6102.

The story in a nutshell (and as translated loosely from the primary source presented below): the glassworkers pension fund (SPVG) was ordered by De Nederlandsche Bank (DNB, or the equivalent of the Dutch central bank), that it has to sell the bulk of its gold assets. After the SPVG refused to comply with the order, the DNB went to court and the decision has come out, siding with the central bank, ordering the SPVG to sell the required gold within two months.

The pension fund, which invests for 1142 employees, in late 2009 had gold bars worth 34.6 million euros, or about 1400 kilograms. The total fund assets amounted to 288 million euros at that time. The DNB argued gold is a commodity and holding 13 percent was overweight in comparison to the 2.7% average that pension funds are invested in commodities.

DNB has found that such a large proportion of gold is inconsistent with the interests of the participants. SPVG sees gold as a medium of exchange, such as euros, but DNB believes that the price of gold fluctuates too much for it to be classified as an investment. Translation of the translation: the central bank has now directly ordered a fund how to allocate its gold assets, because it explicitly disagreed with the fund's statement that gold is money, claiming instead that it is nothing but a very volatile commodity. Very soon no pension funds in the Netherlands will be allowed to hold any amount of gold more than the merely nominal.

This latest gold confiscation equivalent event is most certainly coming to a banana republic near you."


That is actually very disturbing. I still would refuse to do it.

[osoab]

mark my words, this will be done here, only worse. someday they'll make you invest x% of your 401k in treasuries because "they're safe."



Government wants your 401(k) – - Hearings set on plan to require Treasuries in ‘automatic IRA’ (http://randysright.wordpress.com/2010/08/29/government-wants-your-401k-hearings-set-on-plan-to-require-treasuries-in-automatic-ira/)


The U.S. Department of Labor released yesterday an agenda for an upcoming joint hearing (http://www.dol.gov/ebsa/pdf/1210-AB33hearingagenda.pdf) with the Department of the Treasury scheduled for Sept. 14 and 15 on whether government life-time annuity options funded by U.S. Treasury debt should be required for private retirement accounts, including IRAs and 401(k) plans.

It is only a matter of time. If ObummerCare is held as unconstitutional, then I would them to accelerate this move.
As early as this Summer/Fall.

I had always thought that they made the requirement/fine for ObummerCare to help with current account deficits thru 2014. By 2014, they would have enough time to change enough of the law and add/remove rules to lessen the hit to the budget (ie. Death panels).

[Cobalt]

So pension funds all over the world are going broke and you go after the one that made a wise investment by obtaining gold.

Sounds like the judge needs a costco size can of whoopass unleashed on him

http://www.shtfplan.com/wp-content/uploads/2010/06/whoopass.jpg

[Uncle Salty]

Let me guess, they have to sell it to the Central Bank.

[gunny highway]

this is the part that really knocked me back on my heals.


DNB has found that such a large proportion of gold is inconsistent with the interests of the participants.

it's a good thing we all used to own boats that sank, never to be found again. ::)

[Bullion_Bob]

The only cure to this insanity that will be understood, aside from everyone grabbing gold and telling the CB's to stuff it, is a prescription from Dr. Guillotine.

[mick silver]

Let me guess, they have to sell it to the Central Bank.
i was thinking the same thing

[mightymanx]

Dit da dit ditditda dit.....

This just in, Central banks run the government of their respective country.

Now back to your regularly scheduled program.

[osoab]

I didn't catch one aspect in the story that I would like to be clarified.

Is the pension fund autonomously investing in gold, or is this how the plan participants decided to allocate their funds?

It seems like it is the previous. So under that thought, the bankers are pissed the other bankers are not going along with the plan of pilfering.

[steyr_m]

Let me guess, they have to sell it to the Central Bank.
i was thinking the same thing


I wonder if they can move it to a Swiss Bank? That's a lot of gold.

[Twisted Titan]

Holy Mother Of God

We own More T-Bills than China???
http://www.youtube.com/watch?v=dsx2vdn7gpY

[Low_five]

In other news, low_five order dutch bank to suck one.