FLASH: German gold report reveals secret sales that likely were part of swaps

lemetropole's picture

Dear Friend of GATA and Gold:

With the Associated Press report appended here, the German gold audit story has just exploded into the English-language press with some important revelations:

-- The gold vaulted by the German central bank, the Bundesbank, with the Bank of England "has fallen 'below 500 tons' due to recent sales and repatriations. ..." So despite the lack of official announcement, Germany lately has been selling gold from London -- perhaps as part of the secret "strategic activities" grudgingly acknowledged two years ago by the Bundesbank to GATA's friend, the German financial journalist Lars Schall:


The lack of announcement of the sale of the German gold in London suggests that the sale was actually part of a gold swap with another central bank -- like the New York Fed. That is, the powerful implication here is that German gold in London was sold at the behest of the United States and in exchange Germany took title to United States gold vaulted in the United States -- or title to gold supposedly vaulted in the United States. This way the Bundesbank could continue to claim ownership of the same amount of gold without lying, at least not technically.

As for the Federal Reserve and the U.S. Treasury Department, when you rig every market you can't worry so much about lying.

Of course such gold swaps were the target of GATA's federal freedom-of-information lawsuit against the Federal Reserve in U.S. District Court for the District of Columbia, a lawsuit concluded somewhat successfully last year, having pried from the Fed an admission that it has secret gold swap arrangements with foreign banks:


-- The Bundesbank is resisting accountability and has censored part of the auditors' report in the name of protecting secrets of the central banks storing the German gold. But why should there be any secrets about it? Nobody's asking for the combination numbers to the vaults, and the combination wouldn't do anyone any good anyway, as the vaults are guarded. Do these secrets involve gold loans and leases and other legerdemain? That seems to be the case.

-- The campaign to repatriate the German gold has gotten noticed in a big way.

-- The Bundesbank has been officially reprimanded by another German government agency for negligence in its custodianship of the national gold.

-- The Bundesbank won't let German parliament members inspect the German gold vaulted abroad because the central bank vaulting facilities supposedly lack "visiting rooms." And yet one of those vaults, the Federal Reserve Bank of New York, offers the public tours that include "an exclusive visit to the gold vault" -- provided, apparently, that you're not an elected representative of the German people:


GATA has made further informational requests of the Federal Reserve, Treasury Department, and State Department involving their gold records:


Since those agencies have failed to respond, GATA now is entitled to bring more freedom-of-information lawsuits against them. But we can't do that without sufficient financing.

The auditors' report about the German gold demonstrates that the Western central bank gold price suppression scheme -- part of a vast scheme of rigging all major markets -- can be exposed and defeated by persistent clamor and demands for information. If you haven't already considered helping us financially, please do so now:


CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

* * *

Unease about Germany's unchecked gold reserves

By The Associated Press
via Boston Globe
Monday, October 22, 2012


BERLIN -- Germany's central bank has failed to properly oversee the country's massive gold reserves, which have been stored abroad since the Cold War in case of a Soviet invasion, independent auditors say.

The central bank must renegotiate its contracts to gain the right to inspect its gold bars, which are worth tens of billions of dollars and are stored in the United States, Britain, and France, the Federal Auditors Office said in a report to lawmakers obtained by The Associated Press on Monday.

The report says the gold bars "have never been physically checked by the Bundesbank itself or other independent auditors regarding their authenticity or weight." Instead, the Bundesbank relies on a "written confirmations by the storage sites."

Most of Germany's gold reserves -- some 3,400 tons worth an estimated $190 billion at current rates -- have been kept in the vaults of the U.S. Federal Reserve, the Bank of France, and the Bank of England since the postwar days, when Berlin worried about a possible land war with the Soviet bloc.

The auditors maintain that the central bank must be able to at least inspect samples of its gold bars at regular intervals to verify their book value.

The report acknowledges that such inspections might be logistically complicated, but it stresses that "this cannot discharge [the bank] from the necessity to carry out an inventory."

The central bank said in a reaction to the report that was also sent to lawmakers Monday that it sees no reason for a physical inspection of the bars. "There is no doubt about the integrity of the foreign storage sites in this regard," it stated.

The debate on most of the gold reserves being held by foreign authorities has caused some inevitable conspiracy theories questioning their very existence, but several German politicians have also voiced unease.

Philipp Missfelder, a leading lawmaker from Chancellor Angela Merkel's center-right party, has asked the Bundesbank for the right to view the gold bars in Paris and London, but the central bank has denied the request, citing the lack of visitor rooms in those facilities, German daily Bild reported.

Given the growing political unease about the issue and the pressure from auditors, the central bank decided last month to repatriate some 50 tons of gold in each of the three coming years from New York to its headquarters in Frankfurt for "thorough examinations" regarding weight and quality, the report revealed.

An initiative backed by some German economists, industry leaders, and a few lawmakers dubbed "bring home our gold" launched in May has attracted some 10,000 supporters online so far.

But Finance Minister Wolfgang Schaeuble and others maintain that there is no reason to worry.

"I currently have no doubt about the stock and the storage of the gold reserves," said Priska Hinz, the opposition Greens top lawmaker on the budget committee. "I do not doubt the reliability of the foreign central banks," she told the AP.

Several passages of the auditors' report were blacked out in the copy shared with lawmakers, citing the Bundesbank's concerns that they could compromise secrets involving the central banks storing the gold.

The report said that the gold pile in London has fallen "below 500 tons" due to recent sales and repatriations, but it did not specify how much gold was held in the U.S. and in France. German media have widely reported that some 1,500 tons -- almost half of the total reserves -- are stored in New York.

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ozziindaus's picture

Germany wanting their gold back from US vaults spells more bad news for Iran and Syria who of course hold US's gold...like Iraq and Libya

baseball13's picture

"50 tons per year over the next three years..." a negotiated timeline to give the banks time to either locate the physical gold, or, to produce enough tungsten bars to please a 'physical' inspection...



CPL's picture

So they stole it out right?


man europe is a shit hole.  The Gypies are honest and the gentry isn't.

bbaez's picture

This will lead to the Confiscation of the Sheeples GOLD !

Can't have FT K empty name can we ?

It will be done in the interest of national security !


Chump's picture

wtf?  American sheeple don't have gold.  That's part of what makes them sheeple, get it?

worbsid's picture

I'm certainly glad I don't have to physically inventory tons of gold. Even the tungsten stuff is heavy.  Of course the reason the bars are so big and heavy is that it is harder for a person to steal.  Banksters have no problem. Just hit ctrl-p and some of it is gone.    

whoknoz's picture

they are not "visitors"...the are auditors...maybe that's how Bernie M fended off the dogs for so long...

Bastiat009's picture

ZH is like all the other "media" ... they report just one side of every story. ZH and CNBS work together. The truth must be in between. Still not a single story about the gold fall which has been going on for days here. It's just like CNBC refusing to report the real unemployment numbers for instance.

Captain Benny's picture

Forget Germany!  The real story is how Mexico only holds 4% of their gold... the rest has been rehypothecated in London!

rustymason's picture

What about the reports of the trucks moving gold around under the towers during the 9/11 attacks?

honestann's picture

100% of the supposed "German Gold" has been stolen. If Germany had even the slightest prudence (as Germans are reported to have in spades), they would demand all their gold be returned to Germany. That they do not demand their gold be returned is proof positive that the predators-DBA-banksters already know the gold has been stolen and sold to hold down the price of gold.

The gold is gone. All of it.

PS: Germany could boost their economy dramatically simply by demanding all their gold back. Since their gold was sold long ago, the predators who are supposedly holding it would need to go into the physical market to replace it. Does anyone know how much the price of gold would have to become to purchase 8000 tons all at once? Gold would be $10,000 per ounce in days. Which means, the newly purchased gold Germany would receive would be worth 7x the current price. Nice! A cool trillion dollars profit simply by saying "give me back my gold".

dugorama's picture

if you go to the German press, you'll read that they've agreed to have us repatriate 50 tons/year.  the slow pace is presumably to allow us to buy it on the side without attracting attention or disrupting markets.

rustymason's picture

Their economy might improve, but only up until the point the inbound nukes made impact.

orangegeek's picture

Governments are broke everywhere at all levels.  All the cash is in the hands of a few.


Thanks to all the socialism for the last 50 years, there's nothing left to spend.

flight77's picture

Germany did not worry about an invasion. The Gold was simply confiscated by the Nixon-Fed administration.
The simple is that.

bbaez's picture

Gold will be confiscated again here in the USA

Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Well, at least we know all the U. S. gold is here and accounted for!  Our last audit of Ft. Knox showed that all was well.  When was last audit you ask?  How about 1953!



Sandmann's picture

When German gold is held in Paris, London and New York one simply has to ask which three powers formed the Western Occupation Zone. It is so clear that Germany has been run for years as a subsidiary of Washington with London and Paris being the branch offices. There is a lot more gilt to fall away before we see the true picture of Western society since the 1950s and how much delusion/illusion has been propagated by the ruling elites

MrBoompi's picture

Like I said a few days ago, unfortunately these Germans are just the latest group of people who will be told to fuck off by the Central Banking cartel.  It really is kind of silly to hear the public comments by Bernanke, et al, about gold, namely gold is no big deal, when behind the scenes they're all scrambling for every last ounce of physical.

slackrabbit's picture

I can just see it sometime in the future...some leader is parping on and suddenly someone in the crowd simply shouts out "Show Us The Gold" and then the crowd joins in and they don’t stop, regardless of what the producer tries. That is when you know they will have failed; when 4 simple words don't have an answer...

ziggy59's picture

First there was goldfinger...this is the whole hand!

AGuy's picture

Corzined! So that's what John Corzined has been up to. No longer content with stealing PMs from the investors, hes moved up to the big leads.

Dr. Gonzo's picture

Guess they can't leave the Euro til they get their gold back. Piggs nations defaulting on them and now U.S. and England going to screw them over too.

tradewithdave's picture

Within Karl Popper's falsifiability framework, (likely a basis for the Soros-Rogers Quantum Fund partnership), would it be reasonable to assert that for the Bundesbank the premise of "The job isn't finished until the paperwork is through" forms a reasonably verifiable basis for the existence of the Fatherland's gold because "When the paperwork is through, so is the job"... no?... yes? 


Dave Harrison

gojam's picture

Venezuela anyone ?

For a really interesting read - http://blogs.telegraph.co.uk/finance/thomaspascoe/100018367/revealed-why-gordon-brown-sold-britains-gold-at-a-knock-down-price/

 That was when gold was $270 an oz. How are the banks faring today ?

Reptil's picture

Silence in the Netherlands...

debtor of last resort's picture

We have tulips. We don't need no stinking barbaric shit.

MFLTucson's picture

Next up, the biggest lie ever told by the US treasury (Ft Knox) which will show the US Gold was all sold or leased by Bill and Monica Clinton with the help of the biggest slime ball of all Robert Rubin! The world where confetti is king!

lesterbegood's picture

Aliens from Nibiru steal gold from central banks in 3...2....1...

shovelhead's picture

Full circle.

The gold that came out of teeth in Auschwitz and Birkenau is now on teeth in Baltimore and Compton.

Lots of luck getting it back, Germany.


bbaez's picture

What did the five fingers say to the face

Sandmann's picture

crap.....that's like saying the US gold was bilked out of Britain in return for Roosevelt letting Churchill bankrupt Britain for US gains.......it was Simonstown in South Africa that on 5 January 1941 USS Louisville collected $149, 633,653  of British gold reserves........Winston Churchill: -

The moment approaches [he said] when we shall no longer be able to pay cash for shipping and other supplies. While we will do our utmost, and shrink from no proper sacrifice to make payments across the Exchange, I believe you will agree that it would be wrong in principle and mutually disadvantageous in effect, if at the height of this struggle, Great Britain were to be divested of all salable assets, so that after the victory was won with our blood, civilisation saved, and the time gained for the United States to be fully armed against all eventualities, we should stand stripped to the bone. Such a course would not be in the moral or the economic interests of either of our countries.


MFLTucson's picture

Cant wait for the German people to react to this.  

Shibumi2's picture

I believe it is a gambit by the Germans to repatriate gold "for inspection purposes"...thus loudly announcing its intentions to verify the quality of the gold whilst not offering offense to the caretakers...all under political cover. In other words, don't send the tungston bitches, cause we be watchin.

I am also amazed at the subservient nature of the otherwise burly Germans requests to check their gold. Renegotiate the right to inspect?? Wha??


The whole thing stinks to high heaven. Let us presuppose that the germans were coerced into depositing the gold under various pretexts in lieu of war repatriations with the "understanding" that it would be returned "later" when everyone was rich and the war was a distant memory. In the meantime the gold would be used as backing of the us currency to allow expansion of the currency pre-nixon. Win-win.

The germans are likely spooked knowing that their gold is gone...having been replaced by tungsten bars. Worse, they wonder if the once honorable us intends to honor its previous agreements.


The propensity for the international media to spin, fabricate and bullshit seems to have no bounds.



enoch_root's picture

The LIBOR rigging scam was the tip of the debtberg.

Under the ocean the full scam in its glory includes gold loans, gold swaps, GOLD LEASE RATES controlling LIBOR via bullion bank-central bank secret agreements and a mountain of interest rate derivatives in the trillions.

The gold basis rate was the fulcrum for the whole Black-Scholes-fueled Ponzi boom we had since 1987 .... the final kaboom we have not heard but the real gold is disappearing fast, what little is left.

Bastiat's picture



interest rate derivatives in the trillions.

Hundreds of $trillions.

Fred C Dobbs's picture

Does anyone know how the German people are taking this?  Hopefully they will force their leaders to get a real audit.  One can hope. 

Tuco Benedicto Pacifico Juan Maria Ramirez's picture

"Does anyone know how the German people are taking this?"

Not sure, but I think it involves touching one's ankles?


optimator's picture

And how 'bout US getting a full audit.  Black Swan or what?  As for Germany, we can't find your gold, but are sending pallets of $100 bills to clear your books.  Whooopsie, we don't have that either so we will wire the money to you immediatly!

nmewn's picture

lol..."I currently have no doubt about the stock and the storage of the gold reserves," said Priska Hinz, the opposition Greens top lawmaker on the budget committee."

Spoken like the equivocating pol she is.

"I do not doubt the reliability of the foreign central banks," she told the AP.

Ahhh, thats much better Frau...have a doggie treat, lay down, roll over...good girl ;-)

bigkahuna's picture

They should have started this years ago. The soviets have not been a problem for some time, though times are a'changin'...


Instead of Russia, the soviets have come to the USSA. They better get all their gold, like - right now.

MillionDollarBoner_'s picture

Join the dots...

HSBC is custodian for GLD and has phys vaulted in LONDON, along with holdings for "others". Bob Pisani has seen it...

Phys gold is believed to be rehypothecated n times over...

Traders demand delivery on Futures and Options - that delivery takes place in LONDON...

German gold stocks in LONDON have dropped...

Go figure ;o)

Joe A's picture

Ze gold ist gone. Replaced with gold coated tungsten. Germany just needs to keep the illusion intact that the gold is in safe hands in NY, London and Paris.

ebworthen's picture

Barbarous relic - they have computers and databases and keystrokes now.

They don't need tangible assets, they have Ctrl-P and how many thousands of rounds of ammunition and the I.R.S.?

That gold would come in handy for them to bribe people who still see gold as valuable, or as barter for something else.

Besides, who does legitimate accounting anymore?

tongue.stan's picture

can't wait for the audits of libya's, egypt's,, greece's, irish's, tunisia's. afgan's, paki's, or syria's gold. for starters.

flyweight's picture

"I do not doubt the reliability of the foreign central banks"

(German lawmaker's brilliant quote of the day)