A Comedy Of Golden Bundesbank Errors

Tyler Durden's picture

Follow this simple chronology of events:

 

October 24, 2012 (source: Bundesbank pre-revision; courtesy of Google Cache)

"The reasons for storing gold reserves with foreign partner central banks are historical since, at the time, gold at these trading centres was transferred to the Bundesbank. To be more specific: in October 1951 the Bank deutscher Länder, the Bundesbank’s predecessor, purchased its first gold for DM 2.5 million; that was 529 kilograms at the time. By 1956, the gold reserves had risen to DM 6.2 billion, or 1,328 tonnes; upon its foundation in 1957, the Bundesbank took over these reserves. No further gold was added until the 1970s."

 

October 28, 2012 (source: "Some Follow-Up Questions For The Bundesbank, And Its Gold" courtesy of Zero Hedge)

1. Thiele says:

"By 1956, the gold reserves had risen to DM 6.2 billion, or 1,328 tonnes; upon its foundation in 1957, the Bundesbank took over these reserves. No further gold was added until the 1970s"

This is factually incorrect. From a documented source such as Timothy Green's gold reserves report from 1999 (source), we find that German gold reserves were 1,328 tonnes in 1956 and contined to rise every year until 1969 when they hit 4034 tonnes, an increase of 200% since 1956! Offical German gold in 1970 was 3,537 tonnes and declined to 2,963 by 1979. Since then it has increased by just 400 tonnes.

 

October 29, 2012 (source: Bundesbank post-revision)

"The reasons for storing gold reserves with foreign partner central banks are historical since, at the time, gold at these trading centres was transferred to the Bundesbank. To be more specific: in October 1951 the Bank deutscher Länder, the Bundesbank’s predecessor, purchased its first gold for DM 2.5 million; that was 529 kilograms at the time. By 1956, the gold reserves had risen to DM 6.2 billion, or 1,328 tonnes; upon its foundation in 1957, the Bundesbank took over these reserves. Further gold was added until the 1970s."

* * *

Minor difference.

* * *

One can only hope that the Bundesbank does not apply the same level of quality-control and error-proofing to its gold holdings, as it does to its official statements debunking crackpot conspiracy theories.

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Zombie Investor's picture

Unbelievable:

"The U.S. Labor Department on Monday said it hasn’t made a decision yet on whether to delay Friday’s October jobs report, the final reading on the labor market before next week’s federal elections.'

http://blogs.wsj.com/economics/2012/10/29/labor-department-may-delay-jobs-report/

insanelysane's picture

"Unbelievable"; I do not think that word means what you think it means.

CrockettAlmanac.com's picture

These boating accidents are getting serious.

 

 

Russian ship with 700 tons of gold ore missing

 

http://news.yahoo.com/russian-ship-700-tons-gold-ore-missing-120438836--...

icanhasbailout's picture

gold investors know you can't be cynical enough

SWRichmond's picture
A Comedy Of Golden Bundesbank Errors

Leaving the DM.

The Phu's picture

Perhaps the work of Ragnar Danneskjold?  Ayn Rand was right!  </sarc>

zapdude's picture

Crocomire!  I love that game.

lunaticfringe's picture

Quite believable. The report will be offered up on the basis of whether or not it is helpful to the incumbent. If it is a negative or adverse report, somebody will deem it inappropriate for release.

As we get nearer to the elections, a yeti stepping off a spaceship in my front yard and delivering free pizza if I promise to vote democratic- would no longer surprise me.

swissaustrian's picture

They'll blame Sandy on CNBC come Friday.

Karlus's picture

Gold, Hündinnen?

apberusdisvet's picture

The new gold backed currency will be called the Rothschild.

q99x2's picture

Dow 12,999 today. What does it matter that markets are closed the number is still changine. Even CNBC crew came in today. They are sitting around with their tumbs up their ass and they have the lights out in the office

WillyGroper's picture

>>>>>They are sitting around with their tumbs up their ass

Does that mean they have ASSid indigestion? :)

aleph0's picture

OK, it "is" Fox News, but still :

 

Ship with 700 tons of gold ore disappears off Russia

http://www.foxnews.com/world/2012/10/29/ship-with-700-tons-gold-ore-disa...

Tyler Durden's picture

1) It's Associated Press

2) 700 tons of gold ore would lead to the extraction of... 24 kilograms of gold.

File:Gold 30g for a 860kg rock.jpg

Relative sizes of an 860 kg block of gold ore, and the 30 g of gold that can be extracted from it. Toi gold mine, Japan.

krispkritter's picture

Nothing a little gold spraypaint can't fix! I mean if they can use it over tungsten, why not?

francis_sawyer's picture

That foto is only "phase one" of the operation... Then ~ after the Rothschilds [& friends] have stolen their bit, the refined gold brought to market is about the size of one of those grains of sand...

Matt's picture

You can probably gold plate a few hundred tons of tungsten with 24 Kg of pure gold.

StychoKiller's picture

Mmm, tungsten -- tasty, tasty tungsten!

walküre's picture

Is it possible they made a mistake when editing the piece before release?

Further gold was added ..

I'm not an English expert but can a sentence commence with "further" ? Where are our grammar experts today? Swimming? Seriously, I tend to think the sentence should have read "No further gold was added ..."

Which would make sense and correspond with the other accounts.

JohnG's picture

 

 

Interesting question.  Yes, a proper sentence may begin with further.  "was added" is however a grammatical error - passive voice.  Should be active voice as it is not clear "who is doing what."

Should be something along the lines of "We added...."

Hell you asked for an english person......I took a minor.

Unholy Dalliance's picture

Try: more gold was added…

And it is OK to say was added.

Urban Redneck's picture

You may be genius- even though my German sucks- it's the same in Google cache (10/26) as is currently on the website.

Bis in die siebziger Jahre kam weiteres Gold hinzu.

http://www.die-konjugation.de/verb/hinzufügen.php

Current German

http://www.bundesbank.de/Redaktion/DE/Interviews/2012_10_24_thiele_dpa.html

Cached German as of 10/26

http://webcache.googleusercontent.com/search?q=cache:vKLU-cSVc2YJ:www.bu...

malikai's picture

24 KG? Sure, I'll take it. Not sure I'd want to be found afterwards, being Russian gold and all.

dariomilano's picture

pirates bitchez O.O

Dr. Engali's picture

That looks like a Wonka bar. Except in this case you get a tungsten ticket.

krispkritter's picture

I'd still like to keep the wrappers...

glenlloyd's picture

This revision should surprise no one....

Itch's picture

um, yeah because its just a typo

Skateboarder's picture

One frickin word can make the difference between a) a couple of decades, and b) a few thousand tonnes of gold...

Nice catch TD, excellent sleuthin as always.

StychoKiller's picture

Ya gotta wonder how some people are even smart enough to remember to breathe!

Al Huxley's picture

I'm just surprised that the Bundesbank feels compelled to respond in any way to the 'show us our gold' outcries from whoever.  The fact that they feel the need to respond makes me think that they probably don't actually have any gold, that all the rumors are actually true. 

Unprepared's picture

"I did not have --- relationship with that women."

Diplodicus Rex's picture

The grey bar in that photo is not tungsten. The shaped dent was made by a drill bit which would have been selected to cut through the soft gold expecting the gold to be consistent throughout the bar. That drill bit could not have made the dent in the tungsten. Tungsten is very hard and requires special tools for machining. I never liked that story at the time. Something does not smell right about it.

Svendblaaskaeg's picture

Bingo! - it's fools tungsten

 

Random_Robert's picture

You have to read the original story -

Certified Assayers don't drill holes with 1/8 inch drill bits - that is NOT an Assayer's hole- it was drilled by the bar's owner, using his garage drill press.

Now, any rank hobbyist with a neighborhood Lowes, Home Depot or Sears can get a set of Tungsten carbide or Titanium drill bits, and YES, a carbide or Titanium bit could dig into a chunk of refined tungsten for a little bit before it became too dull to dig any further...

Now, I can't certify from a photo that the grey bar in that picture is Tungsten (the way you seem to be able to), but the rest of your argument is rather capricious, and arbitrary...

 I detect no order from that photo, or from the original story.

 

Diplodicus Rex's picture

Thank you for the correction. I stand corrected and withdraw my statement. That may also explain the slice that has been taken off the corner like a bar of chocolate.

RSBriggs's picture

Not quite true - Tungsten the metal is fairly ductile - it can be cut with hardened steel tools; a tungsten carbide drill bit could easily have made the mark shown in a bar of tungsten.   Tungsten carbide is hard and brittle as is alloyed Tungsten, but Tungsten in pure form is not all that difficult to machine.