What is Germany scared of? Bundesbank to retrieve $200bn of gold reserves from centra

[Ponce]

As someone once said...."If you don't hold it, you don't own it"... Ponce............................. V
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Germany is set to retrieve its gold reserves held abroad, in a move critics fear could trigger a contagion of mistrust among the world’s central banks.

The country’s Bundesbank is set to repatriate a large hoard from its holding in New York and all of its bullion from Paris, the German newspaper Handelsblatt has reported.

Germany's Bundesbank owns nearly 3,400 tonnes of gold – only the US has a bigger reserve.

Safe keeping: Germany is reportedly set to repatriate tonnes of gold
Until now Germany has been happy to store part of its reserves in vaults at foreign central banks – an estimated 45 per cent at the Federal Reserve Bank of New York, 11 per cent the Banque de France and 13 per cent at the Bank of England. Just 31 per cent is held at its headquarters in Frankfurt.

Much of the gold stashed abroad as been there since the Cold War, when it was moved for safety amid fears of a Soviet invasion.
More...CHECK THE LATEST PRICE OF GOLD HERE
World Bank in warning over the recovery of global economy

But now the bank is reportedly planning to overhaul this distribution, leaving just small amounts in the US and UK for trading and liquidity in dollars and sterling and bringing the rest back to Germany, worth an estimated $200 billion.

Bundesbank board member Carl-Ludwig Thiele claimed last year that there is no longer a need to hold gold abroad, now Germany is at peace.

However critics fear Germany’s move could prompt other central banks to repatriate their gold, undermining the role of the US and UK as key custodians of the commodity.

Walls of wealth: Gold reserves at the Federal Reserve building in New York
The timing of the decision – amid continued uncertainty in global markets and ongoing turbulence in the eurozone – is also likely to prompt accusations that Germany is preparing for the eventuality of an escalation of the global financial crisis.

The move comes just months after the German Federal Court of Auditors called on the Bundesbank to carry out a physical inspection of the gold reserves it stores at foreign banks.

At the time it was thought the precious metal holdings had never been fully checked.

The central bank was taken aback and maintained it did not see the need for more scrutiny in overseeing the reserves, saying 'there is no doubt about the integrity of the foreign storage sites'.

However, the debate on the gold reserves continued to simmer, with some conspiracy theorists questioning their existence and a few politicians calling for some of the reserves to be retrieved.

Germany has around eight times more gold than the UK, after Gordon Brown sold more than half of the UK's reserves between 1999 and 2002 when prices were at a 20-year low.

Analysts say gold could still hit $2000/oz this year, meaning the UK could have sold its gold for £16billion, as opposed to £2billion.


Read more: http://www.dailymail.co.uk/money/markets/article-2263254/Bundesbank-retrieve-200bn-gold-Paris-New-York.html#ixzz2IBzbkey5
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[Serpo]

What are they afraid of?.................it not being there ,basically..........http://i.dailymail.co.uk/i/pix/2013/01/16/article-2263254-001D0BF800000258-483_634x439.jpg

[Serpo]

So Germany has asked for the gold stored at the Fed to be returned to Germany. The amount of gold the US supposedly has stored for the Germans is 1,536 tons. This can certainly be shipped to Germany. Yet it’s going to take 6 or 7 years to return a small portion of the gold to Germany? Why?
They ship much more oil than gold. This is ridiculous. What do they expect? Do they expect the gold to blow up? Last I heard gold doesn’t even oxidize or even tarnish, much less blow up. Why can’t they just load it on a ship or on planes and send it? Something doesn’t add up here, Eric.



The reality here is that the German gold has been leased out and it’s not sitting in the vault. So the Fed has agreed to return very small portions of the German gold each year, which is supposedly stored at the Fed. Well, the gold isn’t there and that’s why it is going back to Germany in small portions each year.



People also need to remember gold is not going down much, because the US doesn’t have enough to sell. The problem is what you sell in the physical market, you have to deliver. At a certain point, the US will run out of other countries gold to sell. The US will reach a point where they have to hope that the gold price doesn’t start to really fly.


http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/1/16_Why_Its_Taking_7_Years_For_Gold_To_Be_Returned_ To_Germany.html

[Ponce]

Remember what happened with France?......they sold all their gold for a few hundred per once and then gold took off like a bullet to $1,800's........we still have the gold for Iraq and a few more countries with whom we want to make war, I would say that we used all our gold long ago for war and are now using some of the gold from other countries in our trust.....people forget that "IN GOD WE TRUST" all others cash.

V

[Serpo]

Germany Reacts To The Retiring Treasury Secretary’s Parting Shot (http://www.jsmineset.com/2013/01/16/germany-reacts-to-the-retiring-treasury-secretarys-parting-shot/)
January 16, 2013, at 1:05 pm
by Jim Sinclair (http://www.jsmineset.com/author/jimsinclair/) in the category General Editorial (http://www.jsmineset.com/category/generaleditorial/) | http://www.jsmineset.com/wp-content/plugins/wp-print/images/printer_famfamfam.gif (http://www.jsmineset.com/2013/01/16/germany-reacts-to-the-retiring-treasury-secretarys-parting-shot/print/) Print This Post (http://www.jsmineset.com/2013/01/16/germany-reacts-to-the-retiring-treasury-secretarys-parting-shot/print/) | http://www.jsmineset.com/wp-content/plugins/wp-email/images/email_famfamfam.png (http://www.jsmineset.com/2013/01/16/germany-reacts-to-the-retiring-treasury-secretarys-parting-shot/email/) Email This Post (http://www.jsmineset.com/2013/01/16/germany-reacts-to-the-retiring-treasury-secretarys-parting-shot/email/)
My Dear Friends,
I respectfully disagree with most of the explanations given today on the why of German actions in gold. My understanding is that the causal event of this notification actually came from the actions of the US Exchange Stabilization Fund and the long term plans to strengthen the euro.
I have published a chart from Patrick showing the extreme change in the ratio of gold to fiat currency presently being held in reserve by Euroland.
First you need to understand what the Exchange Stabilization Fund is and is not. It is an account at a major gold bank in the name of the Exchange Stabilization Fund. This fund can legally trade in gold and does. The President of the USA and the Secretary of the US Treasury run this fund. Those two managers by law are permitted to designate another manager if they wish. The fund can trade long or short, borrow or lend anything. Basically this is a an account that can legally do anything it wants whenever it wants in secret as the year end statement can easily be brought to only benign activates by warehousing all the trades.
Their broker is quite an expert in that strategy to wash year-end positions for clients.
What occurred as I am told is an act in Germany in reaction to a parting shot from the retiring Secretary of the US Treasury via the Exchange Stabilization Fund.
When gold traded at $1918 it was setting up for a challenge of a very important round number, $2000. The sell off was a product of long liquidation in an anticipation of $2000 in a fast market. Gold did fall on its own weight into the $1800 area, however the body block at $1800, $1775 and $1750 was a product of the Exchange Stabilization Fund operating as an account of a major Gold Bank. Seeing that, this gold bank went to the short side for the account of its hedge funds and not wholly owned trading arm. This gold bank issued a public statement that the gold market was dead as a doornail, finished and completed.
On the level of central banking there are no secrets. The long term plan for the currency war between the euro and the dollar is a derivation of the Free Gold Thesis. That means a significant change in the percentage of fiat currency versus gold at market value held by Euroland as reserves. This thesis has a target for cooperating Asian central banks for gold holdings at no less than 15% at market value. I question some of the thesis of Free Gold thinkers, but much of it has been in my writing for more than a decade on what the end game recovery will look like.
I am told that the parting shot to break gold’s back by the Exchange Stabilization Fund was considered a direct attack on the Euro strategy for what the end game recovery will look like. The Free Gold thesis requires significantly higher gold prices to work and to elevate the euro back in reserve by choice category.
The German reaction was not political but rather a direct warning that they could demand return of their gold just like DeGaulle of France did in the 60s by making a direct and immediate demand for conversion of the US dollar holdings into Gold.
A major central bank will not insult another major central bank unless it is an act of financial war. It has not come to that yet, but it is not that far away. It is 2015 to 2017 and not 2020.
The reason that gold is relatively firm after the media leak and release on the night of the 14th is that I am not the only person who knows the real story. The price of gold will go to and beyond $3500. Gold will be market to market by the majority, if not all, major central banks. This will balance the balance sheet of the many and major debtor nations and will provide the platform for recovery after unwinding.
Respectfully,
Jim

http://www.jsmineset.com/

[osoab]

Remember what happened with France?......they sold all their gold for a few hundred per once and then gold took off like a bullet to $1,800's........we still have the gold for Iraq and a few more countries with whom we want to make war, I would say that we used all our gold long ago for war and are now using some of the gold from other countries in our trust.....people forget that "IN GOD WE TRUST" all others cash.

V

It was England under the perderass Gordon Brown that sold off the English gold at 2xx FRNs per ounce. Sold it to the Rothschilds probably.

[Glass]

It Will Take The Fed Seven Years To Deliver 300 Tons Of German Gold

But the biggest news of the day comes from the official Buba announcement that, in its official capacity as a prudent central bank, it - as first of many - is looking to repatriate some 300 tons of gold from the New York Fed. That, however, is not today's news - that was Monday's news (http://www.zerohedge.com/news/2013-01-14/it-begins-bundesbank-commence-repatriating-gold-new-york-fed).
What is news is that courtesy of the supplied calendar of events in the Buba statement (http://www.zerohedge.com/news/2013-01-16/bundesbank-official-statement-gold-repatriation), it will take the Fed some seven years to procure Germany's 300 tons of gold. This is the same Fed that, in its own words, holds some "216 million troy ounces of gold" or some 6720 tons, in its vault 80 feet below ground level.

Putting the above in perspective, the amount of gold that Germany will have to wait 7 years for is shown in red. The amount of gold the Fed supposedly holds, is shown in yellow with a shade of tungsten. Why it will take the Fed 7 years to part with an amount of gold that is less than 5% of its total holdings is anyone's guess...
unless of course, the bulk of the gold in the column on the right has been rehypothecated numerous times to serve as collateral for countless counterparties, and it is no longer clear just who own what to anyone.

http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2013/01/German%20Gold%20vs%20Total%20Fed%20gold.jpg




Story @ Zerohedge (http://www.zerohedge.com/news/2013-01-16/it-will-take-fed-seven-years-deliver-300-tons-german-gold)

[PatColo]

Frenzy in the Gold Market: The Repatriation of Germany’s Post World War II Gold Reserves (http://www.globalresearch.ca/frenzy-in-the-gold-market-the-repatriation-of-germanys-post-world-war-ii-gold-reserves/5319287?utm_source=rss&utm_medium=rss&utm_campaign=frenzy-in-the-gold-market-the-repatriation-of-germanys-post-world-war-ii-gold-reserves) January 17, 2013

[Neuro]

The Jews giving gold to the Germans. Hahahahaaa.....

[Serpo]

http://s1.reutersmedia.net/resources/r/?m=02&d=20120210&t=2&i=569037112&w=460&fh=&fw=&ll=&pl=&r=CDEE8190P7600Germany's gold is in safe keeping..........

[joboo]

Story @ Zerohedge (http://www.zerohedge.com/news/2013-01-16/it-will-take-fed-seven-years-deliver-300-tons-german-gold)



That's completely insane.

If that doesn't tip over some people sitting on the fence perhaps nothing will.

[Sparky]

That's completely insane.

If that doesn't tip over some people sitting on the fence perhaps nothing will.

Yes, this has significant implications. Yet they were laughing and joking about this on CNBC yesterday. They spent much of 2008 covering the global financial crisis, yet they don't see how that is tied to this story.

[Serpo]

Yes, this has significant implications. Yet they were laughing and joking about this on CNBC yesterday. They spent much of 2008 covering the global financial crisis, yet they don't see how that is tied to this story.

Funny that

CNBC.............................Clowns Narrating Bull Chit

[EE_]

Did you see CNBC talking about it 10 minutes ago...this is a very serious move.

I'll watch for the vid

[joboo]

Yes, this has significant implications. Yet they were laughing and joking about this on CNBC yesterday. They spent much of 2008 covering the global financial crisis, yet they don't see how that is tied to this story.

The emperor wears no clothes, and they're still busy window shopping for clothing accessories.

I had to touch the graphic a bit in photoshop. It deserves it's own context outside of the originating article.

http://i49.tinypic.com/2yknn2b.gif

[EE_]

Germany is taking their gold out of Paris, being that Paris now shares the euro. Keeping the gold there as a foreign currency reserve made sense if it ever needed to be converted.

The US is a much different matter. I expect to see all the countries follow suit.
The game of musical chairs may have begun?

[steyr_m]

Germany's Bundesbank owns nearly 3,400 tonnes of gold – only the US has a bigger reserve.


so if Germany actually gets their gold back, they will be the highest holder in gold reserves [since the US gold isn't there]

[EE_]

so if Germany actually gets their gold back, they will be the highest holder in gold reserves [since the US gold isn't there]

One could say that...
One could also say there will be war before that happens?

[EE_]

Video up

Starts at 1:50 Watch---> http://video.cnbc.com/gallery/?play=1&video=3000141893

[Serpo]

so if Germany actually gets their gold back, they will be the highest holder in gold reserves [since the US gold isn't there]


IF...................hahahaha

[steyr_m]

One could say that...
One could also say there will be war before that happens?

Hey, maybe Germany will actually win this time

[steyr_m]

IF...................hahahaha

Yeah, I forgot to bold the "if" word....

[Sparky]

Video up

Starts at 1:50 Watch---> http://video.cnbc.com/gallery/?play=1&video=3000141893

Interesting. So one guy really gets it. Good for him. He said exactly what I said in the other thread, i.e. they dismissed Chavez in Venezuela because he's a nut. But Germany is respected and important.

I also mentioned that the real story would be when ANOTHER European wants their gold back. In this clip, they briefly mentioned the Netherlands as making sounds in this direction. That would be enormous. The highest claimed sovereign gold reserves (in tonnes):

1. USA 8,134
2. Germany 3,396
3. Italy 2,452
4. France 2,435
5. China 1,054
6. Switzerland 1,040
7. Russia 937
8. Japan 765
9. Netherlands 613

Like Germany, the Netherlands is a country that is respected in the global financial market.

[Serpo]

(http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/1/17_James_Turk_-_Germanys_Gold_Is_Being_Held_Hostage_1.html)Here is what Turk had to say in this extraordinary interview: “It’s quite clear that the German gold is being held hostage. They are not getting what they want. They are getting what the Federal Reserve is telling them they can have. The fact that they are doing it over 7 years rather than 7 weeks, is just an indication that gold probably isn’t in the Federal Reserve, and the Federal Reserve doesn’t want to have to go out and buy it overnight to fulfill the German demand. They are trying to stretch it out as long as possible in order to keep gold prices controlled.


http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/1/17_James_Turk_-_Germanys_Gold_Is_Being_Held_Hostage_1.html (http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/1/17_James_Turk_-_Germanys_Gold_Is_Being_Held_Hostage_1.html)


(http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/1/17_James_Turk_-_Germanys_Gold_Is_Being_Held_Hostage_1.html)

[Sparky]

Has there been any indication that Germany isn't choosing a 7-year strategy? I'd like to hear directly from them, rather than all this speculation that the Fed is delaying the delivery period.

[Serpo]

If you wanted your gold would you be happy to wait 7 years for it and everyone knows what is going to happen in that 7 years......complete and total melt down...

[Sparky]

If you wanted your gold would you be happy to wait 7 years for it and everyone knows what is going to happen in that 7 years......complete and total melt down...
Why aren't they complaining?

[Cebu_4_2]

Why aren't they complaining?

Probably are it's just being blocked by the almighty K-tribe

[joboo]

Why aren't they complaining?

Perhaps they are being offered a nice interest rate...a little sugar on top to sweeten the deal....

Hey NP we have a printing press, and a war machine to take it from wherever the ground produces it best!