What Is The Actual Book Value Of Germany’s Gold Reserves

Tyler Durden's picture

From GoldCore Gold Bullion

What Is The Actual Book Value Of Germany’s Gold Reserves

Today’s AM fix was USD 1,717.00, EUR 1,317.22, and GBP 1,072.12 per ounce.
Yesterday’s AM fix was USD 1,725.00, EUR 1,321.03, and GBP 1,075.10 per ounce.

Silver is trading at $31.80/oz, €24.52/oz and £19.95/oz. Platinum is trading at $1,590.25/oz, palladium at $605.25/oz and rhodium at $1,125/oz.

Gold climbed $6.40 or 0.37% in New York yesterday and closed at $1,728.50. Silver hit a high of $32.434 and finished trading with a gain of 1%.

Gold edged down on Tuesday, in tandem with equities that relinquished gains, however demand from jewellers supported prices as investors await the policy statement from the US Federal Reserve meeting to be released on Wednesday at 18:15 GMT.

No major announcements are expected to come out of the meeting.  Last month the Fed committed to hold rates low even after the economic recovery has strengthened. This was the signal that indicated it will continue intervening until the economy grows fast enough to decrease US unemployment sharply.


XAU/EUR Currency 3 Days – (Bloomberg)

The euro remained firm against the dollar as the market expects Spain to apply for a bailout within the next month.  Now that Spain’s regional elections are complete and with Spain’s Prime Minister Rajoy’s People’s Party winning 41 out of 75 seats in the Galician assembly this affirmed the approval of financial austerity measures and paves the way for a formal bailout from the EU.

Spain's central bank announced this morning that the Spanish economy contracted at a faster pace in Q3 (1.7% vs. 1.3%) and that the country may miss its budget-deficit target because of tax-revenue shortfalls.

In India, demand for the yellow metal climbed overnight after a rebound in the rupee discounted prices by 1%.

German Federal auditors handed in a report slamming the Bundesbank for not inspecting their foreign held gold reserves to verify their book value.

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, it relies on "written confirmations by the storage sites." 

The lion’s share of Germany's gold reserves (nearly 3,400 tons estimated at $190 billion) are housed in vaults of the US Federal Reserve, the Bank of England and the Bank of France since the post-war days, when they were worried about a Cold War Soviet invasion.

The Bundesbank stated, “There is no doubt about the integrity of the foreign storage sites in this regard".

In contrast with best industry practices Germany’s gold reserves do not seem to be independently verified by a third party.

Philipp Missfelder, a politician from Merkel’s own 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’s daily Bild reported.

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".


Cross Currency Table – (Bloomberg)

With German elections around the corner (and this a politically sensitive issue) the central bank decided last month to repatriate about 50 tons of gold per year over the next 3 years from New York to its headquarters in Frankfurt for "thorough examinations" regarding weight and quality, the report revealed.

The auditor’s report stated that the German Central Bank’s gold in London has dropped "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 — half of their total is stored in New York. 

The lack of an 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. The only question is the lack of transparency surrounding the fall in London.  Was German gold sold at the behest of the US and in exchange Germany took title to US gold vaulted in the New York? Or was title to gold supposedly vaulted in the United States?  

German economists have led a rally to “bring home our gold” and the news article listed below was circulated by the AP.

For breaking news and commentary on financial markets and gold, follow us on Twitter.

NEWS

Gold holds above $1,720, Fed in focus – Reuters

Gold Poised to Decline Before Fed Policy Meeting; Silver Falls – Bloomberg

Fed likely to send wait-and-see signal at meeting – Huffington Post

COMMENTARY

Unease about Germany's unchecked gold reserves – Associated Press

Japanese Government Demands BOJ Do QE 9 One Month After Failed QE – Zero Hedge

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francis_sawyer's picture

There's a lot of tasty Wonka chocolate in those wrappers... Pick the right one & you get a free tour of the factory...

Thomas's picture

It doesn't count if you only put the tip in.

gmrpeabody's picture

I feel they really don't want to know..., they can't handle the truth and they know it!

ParkAveFlasher's picture

The great part about the Wonka metaphor, is that pudgy little Teuton Augustus Gloop is about to again find himself the first one suddenly sucked into the innards of the chocolate factory. 

 

Stoploss's picture

I love it, everybody thinks everybody else has their 'gold' safely stored in the vaults.

 

 

 

 

 

 

 

That don't exist.

Stock Tips Investment's picture

This topic is very interesting. What apparently is happening is that this growing distrust by the global economy. Those with large quantities of gold, want to have that gold under his direct control. Why? The global economic downturn could jeopardize national security of each country individually. Has begun to emerge a certain distrust among major economies. This leads me to think of two issues: first, it is likely that the global economic downturn is much higher than initially estimated. Second, the price of gold will rise to unthinkable levels.

Thomas's picture

They gotta quit listening to Rickards.

knukles's picture

Hah ha ha ha ha

Whadda crock o shite
No visiting room

Horseshit horseshit horseshit

This is way beyond conspiracy theory

What Gold?

gmrpeabody's picture

They are lacking handicap bathrooms.

JimBowie1958's picture

The 'no visiting rooms' excuse has to be among the most ridiculous excuses ever told, right up there with the girl who cant  date tonight because she is 'doing her hair'.

I mean, WHAT THE FUCK are these idiots thinnking? What are they trying to tell the world?

I know what the implicit meaning is, however; 'We have no gold for you to see right now, so come back later while we throw some rattle-canned gold tungsten together.'

Vincent Vega's picture

My guess is that the physical gold of the world has been rehypothicated so many times that no one knows who actually owns what. Everyone who thinks they own gold should ask for delivery. Let price discovery reign.

Tony Rumjog's picture

How do you say rehypothecation in German?

gmrpeabody's picture

That would be Italian. Bernanked is the German version.

jayman21's picture

Same as in English.  Fucked

Svendblaaskaeg's picture

Weiterverpfändung (google tranny)

Mad Mohel's picture

A more important question is, what is the book value of Tungsten?

a growing concern's picture

On the bright side, it's pretty useful when propelled at a high rate of speed.  So we've got that going for us... which is nice.

becky quick and her beautiful mouth's picture

they can only move 50 t a year back home, because that's how long it takes to remove the tungsten and re-smelt them.

jjsilver's picture

Anyone know the market value of 3,400 tons of tungsten? Bend over and grab your ankles!

tocointhephrase's picture

In truth, your butt hole in the air is probably worth more!

Quinvarius's picture

Bob Pisanai showed us all the gold in the Western banking system already.  Germany should just give up.  They should pin all their hopes on debt backed fiat paper and the US government's ability to maintain a gold price of $42 an ounce.  This is the plan that has been working so far.  Full steam ahead.

MarcusLCrassus's picture

Book value is $0 as Germany has no gold reserves.

 

America, on the other hand, has lots of gold that Germany still thinks belongs to it. 

 

Suckers. 

MillionDollarBoner_'s picture

Meh...book value is whatever is written down in the books

Real value is something else and depends critically on possession...

rsnoble's picture

Storing your gold in the US. LMAO, sorry but that idea is incredibly insane.

I wonder how many underground tunnels lead directly to places like Bush's house, Obama's new underground bunker, the cockroach brothers pimp house etc.

Consider it Hotel California.

Zero Govt's picture

"The Bundesbank won't let German parliament members inspect German gold ...because... lack "visiting rooms."  ..yet one of those vaults, the Federal Reserve... offers ..public tours that include "an exclusive visit to the gold vault".

Bundesbank caught telling a whopper of a porky

Bernanke can't even lie properly (professionally?) he's so inept

These central bwankers are crones and weasels, without competition to weed out the garbage from the good the monopoly mechanism ensures the most dumbest and corrupt scum rises to the top

German MP's should take the Tour at the Fed, then return home with a demand for Bundesbank sackings for deceipt. If you want an audit (ie. to find the truth) the last thing you'll stomach is being told a pack of lies

crusty curmudgeon's picture

Something tells me the "exlusive visit to the gold vault" doesn't permit visitors to authenticate the "gold."  Therein lies the difference.

knukles's picture

So that's what tin foil hat "Project Blue Beam" is all about

3D holography of Gold Bars in Safe Storage!

(knew it was a CIA plot all along....)

Zero Govt's picture

Crusty, of course a German MP cannot audit the Gold while strolling around the Feds vaults as a tourist ...but the Bundesbanks porky was there's no visitor facilities when clearly some have them set-up  

the Fed must be able to audit their holdings, as any central bank would also, so the Bundes-bullshitters should be hung out to dry on this one

crusty curmudgeon's picture

One must wonder why the Bundesbank would take such a laughably stupid tack.

I had to laugh after reading this article on Mises.org, which stated:  "...the Bundesbank known for its integrity and reverence for stable money..."

Reality has a way of re-asserting itself eventually.

spanish inquisition's picture

I wonder if the Germans read the fine print on storage fees accrued in percentage of gold with interest and paid upon removal?

Quinvarius's picture

How the Hell could you trust a banker who won't do the slightest amount of verification of your deposits?  Talk about alarm bells.

ziggy59's picture

Yeah, but.. all that glitters is not just gold

Bansters-in-my- feces's picture

Don't know the answer to the question,but I know the PPT with thier ESF ,bithch slapped Gold and Silver a good one overnight.

Ps.....Fuck YOU's Little Weasel Timmy and Bone Head Ben.....Fuck you's.

mendigo's picture

I suspect that they will find that the gold has been taken by an islamic militant group (they left a ransom note) suspected to be based in Iran.

They cannot afford to cut military spending so they will have to find something for those boys to do. It is thier patriotic duty to attach people who don't like us.

Romney actually said last night that he would seek to remove the government in Syria and replace it with one that is "friendly" to the us. I know many will not understand what is wrong with that and not that Obama toook issue with that - I think he was trying to interrupt saying "Pick me, I hated them first."

BeaverFever's picture

And in other news, Philipp Missfelder has now been reported missing by his wife of 23 years...

"He was such a happy fellow" stated Mrs Missfelder. "But I didn't like the way those two men gagged him and then threw him into the back of their limousine. They were quite rude if you ask me."

Frastric's picture

The central bankers ate up all the igold...

magpie's picture

Gold gab ich für Wolfram Schäuble ?

Enkidu78's picture

Shit Germany want to see their Gold?  3000 Tonnes?  Where are we going to rehypothecate that from?

GubbermintWorker's picture

The Bundesbank stated, “There is no doubt about the integrity of the foreign storage sites in this regard"

 

Yeah, no doubt about the integrity of our banks...wink, wink ;-)

overmedicatedundersexed's picture

ans: zero..no value in what you do not have your hands on..Germany forget it you got punked.

Antifederalist's picture

Stand and deliver. Bitchez. Bob Rubin drawn and quartered. Yeah, that is the ticket.

JohnFrodo's picture

Gold wrapped tungsten

GoldbugVariation's picture

Is it the “Gold (including gold deposits and gold swapped)” they'll be auditing then?  I'm not sure how you do a physical inspection of gold which has been loaned out, but I guess someone does.

http://www.sprott.com/markets-at-a-glance/do-western-central-banks-have-...

 

D-liverSil-ver's picture

If you don't hold it, you don't own it.

Winston Churchill's picture

20 years too late . I suspect its now in the vaults of the PBOC.

Oh well, easy come, easy go.