German Court Demands Bundesbank Audit Sovereign Gold Holdings

Tyler Durden's picture

The German court of auditors (Bundesrechnungshof) has demanded that the Bundesbank undertake an audit of its gold reserves.  In an 'audit-the-fed' style effort, the court wants to ensure that the nearly 3400 tons of gold is in fact in existence - 'because stocks have never been checked for authenticity and weight'. Furthermore, the Bundesbank's gold is stored in three other vaults around the world: The Bank of England, The Bank of France, and the US Federal Reserve. The court questions the practice of relying on a written confirmation from the custodians (foreign central banks). The decision means negotiating with the three foreign central banks for physical verification but in anticipation, the Bundesbank has begun the process of shipping 50 tons per year from the Fed back to Germany for the next three years.


Germany's apparent (unchecked and unverified) gold holdings are second only to the USA's (just as unaudited levels)...


Via Spiegel:

Germany has the second largest gold reserves in the world, nearly 3400 tons. Supposedly, anyway. Because stocks have never been checked for authenticity and weight. Now, the Federal Court has asked the Bundesbank to examine the gold reserves abroad regularly.


The German central bank gold is safely stored in vaults in Frankfurt, New York, Paris and London. Checked really but apparently no one. The Federal Court has the Bundesbank now anyway required regular inspection and inventory of the vast gold reserves abroad. The auditors explain this in a report on Monday has become known to the budget committee of the Bundestag with the "high value of gold holdings."


The samples stored at other German banks stocks were also never by the Bundesbank itself or by other independent auditors "added physically and for authenticity and weight" checked. Actually talk on the subject numerous theories - so should the U.S. gold reserves at Fort Knox have long been looted.


The Bundesbank has on the USA's second largest gold reserves in the world. End of 2011 there were 3396 tons, worth 133 billion euros. After the soaring price of gold is likely to reach about 142 billion euros currently even. Secures the gold bars by the Bundesbank in own vaults in Frankfurt as well as at three bearing points abroad: The U.S. Federal Reserve Bank in New York, Bank of France in Paris and the Bank of England in London.


Bundesbank gets tons of gold from New York


The Court had determined the order of the Bundestag that the Federal Bank reviews its overseas gold reserves stored exactly. It is disputed whether the Bundesbank experienced for years practice sufficient to rely only on a written confirmation to the gold bars by the foreign central banks.


The Court recommends that the Bundesbank to negotiate with the three foreign central banks the right to physical verification of stocks. With the implementation of this recommendation, the Bundesbank has begun according to the report. They also decided to bring in the next three years to 50 tons each of the past at the Fed in New York gold to Germany to get it here to undergo a thorough examination. In the report, several points are blackened. In effect, the paper is not clear exactly how much gold is in which foreign central bank.


The information held in the Federal Bank headquarters holdings consist of 82,857 according to the report bullion stored mostly in sealed containers with 50 bars, which are kept in four separate locked safe boxes. Part of it (6183 bar) stored on open shelves, therefore in a separate vault - the so-called gold chamber. To secure the gold it says in the report: "The vault closure is double, the inner seals and the gold chamber under a triple lock."

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RacerX's picture

so this is how it begins..

Fips_OnTheSpot's picture

50t a year. So now you know the processing time to get that barbaric relic from a tungsten bar and refine it with "correct" number.


gojam's picture

50 tonnes a year.............."if we move real slowly, perhaps nobody will notice."

redpill's picture

Gosh amidst this debt crisis involving "real" and "modern" fiat money it's awfully weird to waste time fiddling with old fashioned barbaric collectibles.

The more these events occur, the more it will slowly dawn on the western world (the east, minus Japan, never forgot it) that at the end of the day, he who holds the gold makes the rules.

metastar's picture

Ha! Yet another bank stress test.

The truth is only revealed when there is a run.

Pladizow's picture

Who performs the Audit??????????????

Manthong's picture

“negotiate with the three foreign central banks the right to physical verification of stocks”

“Pretty please may I see my gold?”

-- Not to worry. Although gold is not money, you have the full faith and credit of the United States of America backed up by the promises of Ben Shalom and Q-Eternity.

Pladizow's picture

Obummer to label Germany a terrorist state in 3,2,2....

malikai's picture

Why bother? At 50t/yr, this is an easy scam:


  • Receive 50t/yr.
  • Verify.
  • Ship back to FED.
  • Receive same 50t again next year.
  • Verify.
  • Ship back to FED.
  • again....
NotApplicable's picture

Meanwhile, China has bought over 550t this year.


Popo's picture

Ok, so let's crowdsource some scenarios here.   

The gold is not there.   What does the German government public-relations machine do?     Do they publicly announce that Germany has no gold?      Do they announce that in fact, it's there when it isn't?

Seems to me that the result of this inventory-taking is going to be that it's all there,  regardless of whether or not it isn't.    In which case, we the public will continue "not knowing".   UNLESS:  There's a whistle blower along the way somewhere.   





Manthong's picture

Do what all politicians and technocrats do best..


catacl1sm's picture

"When things get serious..."

LongBalls's picture

Back in August the U.S. Gold at the NY Fed was audited by the Treasury. Spot the trend? Basel III anyone?

dcj98gst's picture

The court is just requesting an audit.  How likely is it that it will actually happen.  What are the chances of it actually happening?  10%??  I think these requests have been falling on deaf ears for years.

StychoKiller's picture

Even if the Tozs are there, WHO has 1st dibs?

How many claims are lodged against any given bar?

jekyll island's picture

All the tungsten coated gold came from China.  Hmmmmmm...

JustObserving's picture

India imported 286 tons in the first quarter of 2011.

mr_T's picture

MEXICO has its GOLD in London!

This will be the 2nd time they get jacked for Gold.

This time the pirates don't need to use their ships.

The Chilangos should follow Hugo's lead.

SWIFT 760's picture

There is only so much physical gold above and below ground. Its becoming questionable as to how much is being bought and from what source. Australia proclaims to be a huge seller yet global quantities are not truly verified. 

GATA is a reasonable watchdog, they have more questions then answers. 

Anyway, lets talk about Iceland. Notice, msm has total media blackout on worlds only current financial recovery success story. 

walküre's picture

Dummkopf! Ze gold vil rrrremain in Deutschland für 1000 Jahre!

Mad Mohel's picture

Ship back to the Fed!? At this point in the game it's every mothafocka for themselves. The German's have been pacified, not lobotomized.

Germans- "Herr Bernanke, we only want to count it, we will send it back to you for safe keeping. We promise."

The Bernank- "Hey Timmy, you hear these kraut bastards? They think they're Ron Paul and want to count it. How do you say go fuck yourself in German?"


THX 1178's picture

HALOL @ 3,2,2.



55 men's picture

Internal Investigation.

resurger's picture

this post if very serious! Imagine all other countries follow suit like Germany!

IS this news posted on Bloomberg or CNBC?


Shameful's picture

He who defects first wins.  I'm sure some emergency could be found to suspend repatriation.  Like De Gaul, get it early and often.

catacl1sm's picture

A classic Prisoner's Dilemma.

dick cheneys ghost's picture
PressTv Germany's gold reserves-On the Edge with Max Keiser-10-19-2012

francis_sawyer's picture

Chavez is looking like a genius...

pupton's picture

No kidding.  The best way to audit and verify your gold holdings are to TAKE PHYSICAL POSSESSION.  Even a cancer ridden coconut headed marxist reject knows that!!!  The kids at Zerohedge know it...Come on Germany.  Just take you damn gold back.  Why the hell wouldn't they anyway??????? 

Vincent Vega's picture

What would be serious, and news, is if all other countires showed up at the same time and all wanted to see 'their' gold. Rehypothication could become a bitch real real quick. BTW, yes this story is on Bloomberg.

XitSam's picture

But they won't show up at the same time. The basement of the NYFed will be like a game of Sokoban (warehouseman), pushing the real gold into the proper slot for this day's counting.

Lets_Eat_Ben's picture

It would be easy to some gold moved to where it was needed temporarily.


Maybe there will eventially be a global audit. That would be interesting.

walküre's picture

German financial press makes it front and center headline news. Yes it is serious!

Urban Redneck's picture

More importantly, if a Court orders it, Buba and Merkel have political cover...

Abiotic Oil's picture

Expect a "successful terrorist attack" on the Fed's vaults anytime now which will result in the "incineration of all physical gold" to be replaced, of course, at full value via Federal Reserve Notes and Treasuries.

It's a tossup though whether they will blame it on Al-CIA-Duh or Ron Paul followers.

Bagbalm's picture

Have they ever played Follow the Lady?

Alpo for Granny's picture

For the German Southpark fans...

Puh und seine gegangen!!


Rubicon's picture

Repatriation will end it!

GolfHatesMe's picture

These IOUS are just as good as money

dugorama's picture

need help with the translation?

Mr Pink's picture

We lost a great one today. Russell Means dead at 72

LongBalls's picture

It began with Basel III. This is how it plays out. IGNORE THE PAPER B.S. PEOPLE! The best way to do it is by purchasing physical. Any other method and you don't own squat anyhow.

Atlasshruggedme's picture

You taking bets? DO they have more or less gold to cover the Fiat?

Larry Dallas's picture

This is all a disguise. Nothing will be done. Business as usual. The Emperor is still and will always be clothed.

This is doing nothing but patronizing the politicians.

JLee2027's picture

Germans are smart in hindsight. They can blame America when none of their Gold comes back.

Radical Marijuana's picture

Yeah, many of us presume an audit would reveal outrageous frauds.