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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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Mon, 10/29/2012 - 11:55 | Link to Comment Zombie Investor
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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/

Mon, 10/29/2012 - 11:59 | Link to Comment insanelysane
insanelysane's picture

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

Mon, 10/29/2012 - 12:12 | Link to Comment JohnnyBriefcase
JohnnyBriefcase's picture

He meant "inconceivable!".

Mon, 10/29/2012 - 12:18 | Link to Comment Pladizow
Pladizow's picture

He meant, "expected"!

Mon, 10/29/2012 - 12:20 | Link to Comment CrockettAlmanac.com
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--...

Mon, 10/29/2012 - 12:42 | Link to Comment icanhasbailout
icanhasbailout's picture

gold investors know you can't be cynical enough

Mon, 10/29/2012 - 12:46 | Link to Comment SWRichmond
SWRichmond's picture
A Comedy Of Golden Bundesbank Errors

Leaving the DM.

Mon, 10/29/2012 - 12:50 | Link to Comment The Phu
The Phu's picture

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

Mon, 10/29/2012 - 13:16 | Link to Comment Bansters-in-my-...
Bansters-in-my- feces's picture

He meant "undeliverable"

Mon, 10/29/2012 - 16:36 | Link to Comment Sokhmate
Sokhmate's picture

he meant unconcievable

Mon, 10/29/2012 - 12:25 | Link to Comment zapdude
zapdude's picture

Crocomire!  I love that game.

Mon, 10/29/2012 - 12:30 | Link to Comment JohnnyBriefcase
JohnnyBriefcase's picture

Best. Game. Evar.

Mon, 10/29/2012 - 12:21 | Link to Comment lunaticfringe
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.

Mon, 10/29/2012 - 12:28 | Link to Comment swissaustrian
swissaustrian's picture

They'll blame Sandy on CNBC come Friday.

Mon, 10/29/2012 - 11:56 | Link to Comment Karlus
Karlus's picture

Gold, Hündinnen?

Mon, 10/29/2012 - 12:21 | Link to Comment saveandsound
saveandsound's picture

*lol*

Mon, 10/29/2012 - 11:58 | Link to Comment apberusdisvet
apberusdisvet's picture

The new gold backed currency will be called the Rothschild.

Mon, 10/29/2012 - 12:59 | Link to Comment BigJim
BigJim's picture

abbreviated to 'rotters'

Mon, 10/29/2012 - 11:59 | Link to Comment q99x2
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

Mon, 10/29/2012 - 13:48 | Link to Comment WillyGroper
WillyGroper's picture

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

Does that mean they have ASSid indigestion? :)

Mon, 10/29/2012 - 12:01 | Link to Comment aleph0
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...

Mon, 10/29/2012 - 12:09 | Link to Comment Tyler Durden
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.

Mon, 10/29/2012 - 12:10 | Link to Comment krispkritter
krispkritter's picture

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

Mon, 10/29/2012 - 12:31 | Link to Comment francis_sawyer
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...

Mon, 10/29/2012 - 13:04 | Link to Comment Matt
Matt's picture

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

Mon, 10/29/2012 - 14:36 | Link to Comment StychoKiller
StychoKiller's picture

Mmm, tungsten -- tasty, tasty tungsten!

Mon, 10/29/2012 - 12:27 | Link to Comment walküre
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.

Mon, 10/29/2012 - 13:57 | Link to Comment JohnG
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.

Mon, 10/29/2012 - 16:11 | Link to Comment Unholy Dalliance
Unholy Dalliance's picture

Try: more gold was added…

And it is OK to say was added.

Mon, 10/29/2012 - 18:53 | Link to Comment Urban Redneck
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...

Mon, 10/29/2012 - 12:37 | Link to Comment malikai
malikai's picture

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

Mon, 10/29/2012 - 12:02 | Link to Comment dariomilano
dariomilano's picture

pirates bitchez O.O

Mon, 10/29/2012 - 18:16 | Link to Comment A Nanny Moose
A Nanny Moose's picture

....argh!!! Bytchez! x.O

Mon, 10/29/2012 - 12:02 | Link to Comment Dr. Engali
Dr. Engali's picture

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

Mon, 10/29/2012 - 12:09 | Link to Comment krispkritter
krispkritter's picture

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

Mon, 10/29/2012 - 13:49 | Link to Comment GolfHatesMe
GolfHatesMe's picture

And Everyone is a winner

Mon, 10/29/2012 - 12:04 | Link to Comment glenlloyd
glenlloyd's picture

This revision should surprise no one....

Mon, 10/29/2012 - 12:06 | Link to Comment Itch
Itch's picture

um, yeah because its just a typo

Mon, 10/29/2012 - 12:51 | Link to Comment Skateboarder
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.

Mon, 10/29/2012 - 12:07 | Link to Comment francis_sawyer
Mon, 10/29/2012 - 14:38 | Link to Comment StychoKiller
StychoKiller's picture

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

Mon, 10/29/2012 - 12:10 | Link to Comment Al Huxley
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. 

Mon, 10/29/2012 - 12:19 | Link to Comment Unprepared
Unprepared's picture

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

Mon, 10/29/2012 - 12:10 | Link to Comment Diplodicus Rex
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.

Mon, 10/29/2012 - 12:26 | Link to Comment Svendblaaskaeg
Svendblaaskaeg's picture

Bingo! - it's fools tungsten

 

Mon, 10/29/2012 - 12:38 | Link to Comment Hedgetard55
Hedgetard55's picture

LOL.

Mon, 10/29/2012 - 12:29 | Link to Comment Random_Robert
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.

 

Mon, 10/29/2012 - 12:56 | Link to Comment Diplodicus Rex
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.

Mon, 10/29/2012 - 14:16 | Link to Comment philosophers bone
philosophers bone's picture

Rip Ben a new assayers hole.

Mon, 10/29/2012 - 12:36 | Link to Comment RSBriggs
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.

Mon, 10/29/2012 - 12:57 | Link to Comment Diplodicus Rex
Diplodicus Rex's picture

Ditto

Tue, 10/30/2012 - 02:48 | Link to Comment Svendblaaskaeg
Svendblaaskaeg's picture

"Tungsten carbide is hard and brittle"

yes, great material for those long lasting blowjobs (sandblasting nozzles)

Mon, 10/29/2012 - 12:52 | Link to Comment SubjectivObject
SubjectivObject's picture

Annealed "pure" tungsten has a hardness in the general range of 30 Rockwell C.  This is well less than carbide tool steel bits (60-85 Rockwell C).  Commercial alloys of tungsten can have hardness more or less than 30 Rockwell C, but the more alloy added the more the material's density is changed from the nominal tungsten/gold density.

(not to be confused with tunsten carbide here)

Mon, 10/29/2012 - 12:57 | Link to Comment Diplodicus Rex
Diplodicus Rex's picture

Ditto

Mon, 10/29/2012 - 13:58 | Link to Comment MK ultra
MK ultra's picture

You win the prize. Machinable Tungsten is often referred to as being in the "Green" state.

It has to hipped (hot isostatically pressed) into blanks and then finish ground with silicon carbide or diamond tools to create drill bits or inserts.

Been in the tunsten business for 19 years now. The profits from my scrap carbide business funded my stack ;-)

 

Mon, 10/29/2012 - 12:18 | Link to Comment Unprepared
Unprepared's picture

Tyler, you did censor the udderworld troll, didn't you?

 

I was writing a respond and both his and my posts have been sucked by the net vortex.

 

Not that I mind. I think I saw the troll on Mish a couple of years ago.

Mon, 10/29/2012 - 12:18 | Link to Comment williambanzai7
williambanzai7's picture

I thought Kelly's Heroes stole all the German gold.

Mon, 10/29/2012 - 12:28 | Link to Comment bank guy in Brussels
bank guy in Brussels's picture

Or the big stash might be at the secret Nazi bases in Antarctica, where some say many leading Nazis went after the war ... One of the more curious internet by-ways ...

http://www.gnosticliberationfront.com/nazi_bases_in_antarctica.htm

Mon, 10/29/2012 - 13:10 | Link to Comment Matt
Matt's picture

Why go to Antarctica when you could go to Argentina?

Mon, 10/29/2012 - 13:15 | Link to Comment BigJim
BigJim's picture

LOL. Good find!

NAZI BASES IN ANTARCTICA

Of Nazi bases in Antarctica, which as we have said, may very well have been the point-of-origin of the 'Nazi-Grey' craft that Barney and Betty Hill encountered during their abduction experience. The historical facts are evident...

...the VIPs and scientists started to show up with a compliment of ULTRA, a highly specialized Nazi SS team like our MJ-12. ULTRA has always been in control of Antarctica. ULTRA is the name of a secret alien interface agency in the NSA. Remember that the NSA has connections to both the Nazi S.S. and the Dulce base. According to contactee Alex Collier, the upper level members of the NSA-ULTRA group are cloned replicates or have been so heavily implanted, virtual cyborgs, that they could be considered as being barely human -- automatons who are remotely controlled by the Greys' group ego or group mind. It is also noteworthy that ULTRA is also the NAME OF the Above Top Secret CIA-NSA-Alien base under the Archuleta plateau...

The human imagination never fails to surprise and delight. I think I need to add another layer of foil to my hat before the Greys' group ego can assimilate me.

Mon, 10/29/2012 - 14:04 | Link to Comment JohnFrodo
JohnFrodo's picture

You scoff obviously you have not seen the new documentary about the Supersoldiers.

http://suspendeddisbeliefsteve.blogspot.ca/2012/10/universal-soldierday-of-reckoning-2012.html

Mon, 10/29/2012 - 14:04 | Link to Comment JohnG
JohnG's picture

Didn't they make a Stargate episode about imaginary equipment and aliens and stuff in Antartica?

Tue, 10/30/2012 - 03:35 | Link to Comment are we there yet
are we there yet's picture

So Bernanke is an alien clone from Antarctica? I didn't know aliens were Jewish. But he is doing gods work. With our money.

Mon, 10/29/2012 - 13:50 | Link to Comment JohnFrodo
JohnFrodo's picture

No way to explain why operation highjump remains classified 60 years later.

http://thinkingaboot.blogspot.ca/2011/09/no-way-to-sugarcoat-nazis-emerging-from.html

Mon, 10/29/2012 - 14:03 | Link to Comment knukles
knukles's picture

Exactamundo....

The powers that be ridicule, snarl, get all pissed off and label people conspiracy theorists then go so far as to claim that conspiracy theorists are turrderistusts...
When all they'd really do if it was nothing at all was to disclose the Nothing At Fucking All.

Like counting the gold in the vaults in front of the people on Live Fucking TV

Or re-manufacturing birth certificates when all needs be done is a letter to the state authorizing release of official state records.

I am so fucking sick and tried of this playing 20 questions shit....

etc., etc., etc.

Horseshit.

Mon, 10/29/2012 - 18:20 | Link to Comment Diogenes
Diogenes's picture

Maybe Obama has a real birth certificate but keeps releasing fake ones to keep his enemies chewing on that bone. He knows it doesn't mean anything anymore, and he's afraid of what questions they might ask if they aren't distracted.

And maybe the guards are not there to stop people getting at the gold (that isn't there) but to stop them seeing that it isn't there.

Mon, 10/29/2012 - 12:31 | Link to Comment BandGap
BandGap's picture

First they had to make a deal, deal. Maybe the guy is a republican.

Lost my job friday, have to watch that movie in between pumping out resumes.

Mon, 10/29/2012 - 13:46 | Link to Comment ZeroAvatar
ZeroAvatar's picture

Maybe Ben will let you borrow his printer? (You'll need a LOT of resumes, just sayin'......)

Mon, 10/29/2012 - 14:05 | Link to Comment topspinslicer
topspinslicer's picture

In all seriousness I wish you good luck in your job search

Mon, 10/29/2012 - 12:36 | Link to Comment oddball
oddball's picture

We did, I was there.  Woof woof.

Mon, 10/29/2012 - 12:47 | Link to Comment BarryG
Mon, 10/29/2012 - 12:58 | Link to Comment JR
JR's picture

With roughly 66pc of its gold held at the New York Federal Reserve and only 21pc at the Bank of England after the Bundesbank “slashed its holdings in London from 1,440 tons to 500 tons in 2000 and 2001” in part because “the Bank of England was selling off most of Britain's gold reserves – at market lows – on orders from Gordon Brown,” according to Ambrose Evans-Pritchard, this fitting comment was made by blogger Jack Flash:

“So let Bernanke and crew explain to the Germans that gold is not money and they should not be upset in the least to lose it.”

Says Evans-Pritchard regarding Germany’s withdrawal of two thirds of its vast holdings of gold from Bank of England vaults shortly after the launch of the euro more than a decade ago:

“Peter Hambro, chair of the UK-listed gold miner Petropavlovsk, said the Bundesbank may have withdrawn its bullion in self-protection since it did not, apparently, have its own specifically allocated bars in London. ‘They may have decided that the Bank of England had lent out too much gold, and decided it was safer to bring theirs home. This is about the identification. Can you identify your own allocated gold, or are you just a general creditor with a metal account?

“The watchdog report follows claims by the German civic campaign group ‘Bring Back our Gold’ and its US allies in the Gold Anti-Trust Committee that official data cannot be trusted. They allege central banks have loaned out or ‘sold short’ much of their gold.”

http://www.telegraph.co.uk/finance/financialcrisis/9631962/Bundesbank-slashed-London-gold-holdings-in-mystery-move.html

Mon, 10/29/2012 - 12:58 | Link to Comment orangegeek
orangegeek's picture

The Bundesbank mismanaged their counts because they were too busy making tungsten bars covered in missing/unaccounted for gold.

Mon, 10/29/2012 - 13:03 | Link to Comment trichotil
trichotil's picture

kelly's heroes is joollywood propaganda to cover up the work of more  murderous commie heeb moneychangers.

Massacre at Oradour sur Glane
Mon, 10/29/2012 - 13:19 | Link to Comment HD
HD's picture

I fail to see what the big deal is.  I buy bags and bags of gold coins the day after Easter at K-Mart for a huge discount. I'm set for life!

Mon, 10/29/2012 - 13:21 | Link to Comment jmcadg
jmcadg's picture

'Russian ship with 700 tons of gold ore missing'

These typos are getting sloppy.

It was actually Russian ship with 700 tons of gold or silver missing. They couldn't tell in the dark!

Mon, 10/29/2012 - 14:37 | Link to Comment Zerohedge fan
Zerohedge fan's picture

How about magic trick?

http://www.youtube.com/watch?v=5K3E5tLoado&feature=fvwrel

"I'm going to make this pencil disappear."

"Ta da!

 It's...gone."

Mon, 10/29/2012 - 16:26 | Link to Comment pies_lancuchowy
pies_lancuchowy's picture

where did this hilarious 'lemetropole' dude dissapear? 3 months ago he was SURE that silver will go 100 % (DOUBLE) up , because he allegedly was told so by 'his contact in New York' (lmao) . Vernon... oh Vernon... where are you ?

Tue, 10/30/2012 - 04:44 | Link to Comment 2ndlook
2ndlook's picture

This German gold was probably sold with secret German concurrence. 

See, how everyone is busy blaming Gordon Brown, for selling British gold at low prices. 

Remember Gordon Brown could not have done this alone and single-handedly. 

To those who remember, with Gordon Brown, other Central Banks sold gold too.

Known as the CBGA (Central Bank Gold Agreement) some 2000 tons of European gold was sold - at record low prices. 

What could have been the reason? 

The end of Soviet Union.

Did BundesBank know of this disappearence? Betcha.

Have such disappearances happened before? Many times.

1 of the 3 scams will happen:

1. NY Fed will give a 'certificate' from 1 of the Big-3 auditors confirming existence of German gold.

2. If pressed for physical audit, some gold from a distance will be pointed at & the auditors will be told, "See that gold there? It's yours."

3. Germany will get US gilts as replacement "Sell these & buy gold", the Germans will be told.

Tue, 10/30/2012 - 12:00 | Link to Comment helping_friendl...
helping_friendly_book's picture

NAZI Gold

http://www.enter.net/~torve/trogholm/secret/rightroots/dulles.html

Dulles Brother, Bush family are all traitors.

Do NOT follow this link or you will be banned from the site!