This page has been archived and commenting is disabled.

Don't Worry Germany - Your Gold At The New York Fed Is Safe And Sound

Tyler Durden's picture




 

The hurricane water surge has come and gone, devastating downtown New York, but one place, the one that represents the deepest hole burrowed south of Houston street and literally lies on the New York bedrock 80 feet below street level, is safe and sound. The place, of course, is where over 20% of the world's tungsten gold is stored. Especially that of Germany (wink wink). And Germany, whose central bank was recently caught in a series of official disclosure faux pas as described here in regards to its official gold holdings, can rest assured that nothing that hasn't already happened to its gold, happened last night.

As the WSJ explains:

The Federal Reserve Bank of New York‘s downtown office remains open for business and unharmed by Hurricane Sandy, a bank spokesman said Tuesday.

 

The spokesman said the facility located on Liberty Street in lower Manhattan remains secure and suffered no flooding. The New York Fed is the U.S. central bank’s key point of contact with financial markets, and its castle-like construction is also the repository for a substantial amount of gold.

In other words, those who believe that the vault of the NY Fed contains over 20% of the world's gold, can continue doing so.

And as a reminder for those who missed it the first time around, here is a refresh on the world's "safest" place:

This Is Where The Gold Is(n't) - The New York Fed Guide To The Most Valuable Vault In The World

 

Much has been said about the secretive vault situated 80 feet below ground level at 33 Liberty street, which contains over 20% of the world's gold (allegedly*), currently estimated at over $350 billion. Some have even robbed it: with the barrier between fantasy and reality a blur, courtesy of the total farce we live in which has rendered the IPO of TheOnion impossible, there is nothing wrong with actually believing Die Hard With A Vengeance did in fact happen. But if your knowledge of the vault is limited to the perspective of one John McClane, you are missing our on a lot. Which is why the new York Fed, in those rare occasions when it is not monetizing debt, and/or telling Citadel which securities to buy, has been courteous enough to put together "The Key To The Gold Vault" - the official brochure of the warehouse where more gold is stored than at any other place in the world.

Some excerpts:

The gold stored at the Federal Reserve Bank of New York is secured in a most unusual vault. It rests on the bedrock of Manhattan Island—one of the few foundations considered adequate to support the weight of the vault, its door, and the gold inside—80 feet below street level and 50 feet below sea level.

 

As of early 2008, the Fed’s vault contained roughly 216 million troy ounces of gold (1 troy oz. is 1.1 times as heavy as the avoirdupois ounce,  with which we are more familiar), representing about 22 percent of the world’s official monetary gold reserves. At the time, the vault’s gold value was about $9.1 billion at the official U.S. government price of $42.2222 per troy ounce, or about $194 billion at the market price of $900 an ounce. At the current official U.S. government price, one of the vault’s gold bars (approximately 27.4 pounds) is valued at about $17,000. At a $900 market price, the same bar is worth about $360,000.

 

Foreign governments and official international organizations store their gold at the Federal Reserve Bank of New York because of their confidence  in its safety, the convenient services the Bank offers, and its location in one of the world’s leading financial capitals.

 

The Bank stores gold in the form of bars that resemble construction bricks and stacks them on wooden pallets like those used in warehouses. To reach the vault, the bullion-laden pallets must be loaded into one of the Bank’s elevators and sent down five floors below  street level to the vault floor. The elevator’s movements are controlled by an operator who is in a distant room and communicates by intercom with the armed guards accompanying the shipment.

 

Once inside the vault, the gold bars become the responsibility of a control group consisting of representatives of three Bank divisions: Auditing, Vault Services, and Custody. A member of each division must be present whenever gold is moved or whenever anyone enters the vault.

 

If everything is in order, the gold is either moved to one or more of the vault’s 122 compartments assigned to depositing countries and official international organizations or placed on shelves in one of the “library” compartments shared by several countries. The bars are  stacked one at a time in an overlapping pattern similar to that used to stabilize a brick wall. Each compartment is secured by a padlock, two combination locks, and an auditor’s seal.

And here is why we used a * footnote above:

Confidence results from the Bank’s being part of the Federal Reserve System—the nation’s central bank and an independent governmental entity. The political stability and economic strength of the United States, as well as the physical security provided by the Bank’s vault, also are important factors.

Good luck finding it then. And for those who want to pull a Simon Peter Gruber and have already rented out the dump trucks:

Storing almost $194 billion [ZH: at very old prices] of gold makes extensive security measures mandatory at the New York Fed. An important measure is the background investigation required of all Bank employees. Continuous supervision by the vault control group also prevents problems from arising by ensuring that proper security procedures are followed.

 

The Bank and its vaults are secured by the Bank’s own uniformed protection force. Twice a year, each federal officer must qualify with a handgun, shotgun and rifle at the Bank’s firing range. Although the minimum requirement is a marksman’s score, most qualify as experts.

 

Security is also enhanced by a closed-circuit television system and by an electronic surveillance system that alerts Central Watch when a vault  door is opened or closed. The alarm system signals the officers to seal all security areas and Bank exits. This can be accomplished in less than twenty-five seconds.

 

The gold also is secured by the vault’s design, which is a masterpiece of protective engineering. The vault is actually the bottom floor of a three-story bunker of vaults arranged like strongboxes stacked on top of one another. The massive walls surrounding the vault are made of a steel-reinforced structural concrete.

 

There are no doors into the gold vault. Entry is through a narrow 10-foot passageway cut in a delicately balanced, nine-feet-tall, 90-ton steel  cylinder that revolves vertically in a 140-ton, steel-and-concrete frame. The vault is opened and closed by rotating the cylinder 90 degrees. An airtight and watertight seal is achieved by lowering the slightly tapered cylinder three-eighths of an inch into the frame, which is similar to pushing  a cork down into a bottle. The cylinder is secured in place when two levers insert large bolts, four recessed in each side of the frame, into the cylinder. By unlocking a series of time and combination locks, Bank personnel can open the vault the next business day. The locks are under  “multiple control”—no one individual has all the combinations necessary to open the vault.

 

The weight of the gold—just over 27 pounds per bar—makes it difficult to lift or carry and obviates the need to search vault employees and  visitors before they leave the vault. Nor do they have to be checked for specks of gold. Gold is relatively soft, but not so soft that particles will stick to clothing or shoes, or can be scraped from the bars. The Bank’s security arrangements are so trusted by depositors that few have ever asked to examine their gold.

To think: so much trouble for a little tungsten...

 

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Tue, 10/30/2012 - 17:31 | 2932836 falak pema
falak pema's picture

wow, what do u know, gold doesn't dissolve in water after all!

Tue, 10/30/2012 - 17:33 | 2932845 icanhasbailout
icanhasbailout's picture

Thank you for your money Germany

Tue, 10/30/2012 - 17:43 | 2932869 knukles
knukles's picture

Waiiiit...

Each compartment is secured by (whole buncha shit, locks, chains, fuzzy lined handcuffs and assorted bondage equipment) and an auditor's seal.

So the shit is audited.  In their own words.
Well??????????

No problem about it being done then, eh?

These guys just can't keep the story straight.
Great indica of lies, more lies and damned lies....

 

PS that crap about laying the bars in a criss cross pattern like bricks is priceless.  (Get it, priceless, ha ha ha ha ha .... fucktards)

Tue, 10/30/2012 - 17:44 | 2932887 strannick
strannick's picture

''Germany can rest assured that nothing that hasn't already happened to its gold, happened last night.''

-Wrong, their IOUs got soaked

Tue, 10/30/2012 - 17:58 | 2932913 negative rates
negative rates's picture

The kicker was that it was, and I say was, at the bottom of the world trade center. Which was then harvested and merrilly moved to it's next destination, to pay interest on the debt naturally.

Tue, 10/30/2012 - 18:34 | 2932981 TruthInSunshine
TruthInSunshine's picture

Every rational person with even a basic understanding as to how gold backstops sovereign reserve surpluses held off shore in the form of custodial bailments (such as is the case with the NYBFR having bailment of a portion of Germany's gold reserves) needs to ask themself two simple questions and seriously ponder the potential answers:

1)  Why would a nation such as Germany, in current times, even possibly hold any significant portion of their gold reserves outside of Germany's borders?, and

2)  What would occur if there was a "run" on custodial bailees (i.e. the one receiving/holding the bailment) whereby sovereigns all demanded the physical return of their gold at same time?

 

Tue, 10/30/2012 - 19:50 | 2933109 Manthong
Manthong's picture

“representing about 22 percent of the world’s official monetary gold reserves”

Mr.Ben Shalom, please explain that since your personal stated position is that gold is not money, why is it described it as “ monetary gold”  in your literature:?

ttp://www.youtube.com/watch?v=h6Dj24oJl0w

Tue, 10/30/2012 - 22:06 | 2933440 Enslavethechild...
EnslavethechildrenforBen's picture

Once all you Zombies wake up, no amount of worthless green toilet paper will buy an oz of Gold. The time is very, very near

 

http://occupymonopoly.blogspot.com/2012/10/monopoly-occupy-version.html
Wed, 10/31/2012 - 08:24 | 2934038 SWRichmond
SWRichmond's picture

Foreign governments and official international organizations store their gold at the Federal Reserve Bank of New York because of their confidence  in its safety, the convenient services the Bank offers...

Like rehypothecation!

Tue, 10/30/2012 - 19:49 | 2933110 sotto
sotto's picture

Indeed, why would ANYONE trust the Fed to hold their gold?

http://economiccollapsenews.com/2012/10/28/germany-doesnt-trust-the-fede...

Tue, 10/30/2012 - 20:13 | 2933147 grunk
grunk's picture

This hurricane was the Wall Street equivalent of "Ocean's Eleven."

Why do you think Lower Manhattan went dark?

Tue, 10/30/2012 - 21:17 | 2933313 Pure Evil
Pure Evil's picture

Why is so much money wasted on security for a barbarous relic?

Tue, 10/30/2012 - 23:34 | 2933646 TruthInSunshine
Tue, 10/30/2012 - 21:59 | 2933418 CrockettAlmanac.com
CrockettAlmanac.com's picture

 

2)  What would occur if there was a "run" on custodial bailees (i.e. the one receiving/holding the bailment) whereby sovereigns all demanded the physical return of their gold at same time?

 

Then George Bailey would have to pay them all off from out of his honeymoon money.

Tue, 10/30/2012 - 20:26 | 2932999 TwoShortPlanks
TwoShortPlanks's picture

I see a lot of Jew names on placques in America...can someone please explain to me as to why there are no Chinese names on plaques...they built half of America didn't they?

The Fed needs to change its' current name and advertise its' real name and purpose on a placque as well as its' owners!

From: The Federal Reserve System

To: Private Synagogue And Cache For Syphoning Wealth Of Non Semitic And Aeri-Sheeple Through Inflationary Taxation And The Transfer Of Private (Jew) Debt To Public (Non-Jew) Debt

Anyone who thinks this is incorrect and wildly antagonistic I suggest you read up on the origins of the top 10 Banks in America today, join the fucking dots back to Europe, and work it out for yourself...assuming you possess at least half a brain. And let me save you the suspense in relation to all this Gold funny business and sleigh of hand; the origin of this Gold skulduggery is one the same as the Banking skulduggery (Bail Outs, QE, Libor...fuck, the list is endless).

And don't think for one minute that The BIS (Bank of International Settlements) is 'Clean The Marine', it's more than likely the epicentre of the global multi-century scam (in one guise or another). No, the BIS is a laundering machine, which expanded its' global skimming operations beyond imagination when Derivatives were created...think about it!!!! 'Swift Codes' are used as a weapon when countries don't tow-the-line.

To make the whole system simpler to understand, think of the global banking system as the Internet, Banks are like Websites, Central Banks are like ISP's, Swift Codes are like URL's (which are unique and can be blocked), your Account Numbers and BSBs are like Mac Addresses (also block-able), and the BIS is the backbone. Countries which are not part of the network are integrated semi-peacefully (Cold War, Eastern Block Countries), or by force (Libya, Iraq, Afghanistan, Vietnam). When you think about it, the entire Cold War could well have been a Banking take-over with a conscience.

Oh, what the hell: The BIS is most assuredly THE central figure of, not the corruption WITHIN the Banking System as no such animal exists but, the corruption which IS the Banking System itself. Make no mistake, there is no problem within the Banking System, it is working just fine and it will be reinvented all over again, soon enough, once Bank Debt/Assets (Private Debt), is transferred across to the public as Public Debt/Assets (Wealth Syphoning/Transfer Mechanism). Gold will be the medium of choice (fuck, again!) and thats why there's probably little of it within Central Bank vaults. Get the fucking picture, get the scam?

The average wanker has zero cash in his wallet, zero wealth, has depreciating assets/liabilities such as cars, has equity in property assets which become liabilities in the click of a finger or the stroke of a FED (Jew) pen or key-stroke, and a shit-load of Credit Cards maxed out. When you look at this as a stand alone reality you quickly realise that physical Gold is asset without liability...as such, this is the only medium with which a wealth transfer can occur. Gold is only partly money, it is only partly commodity, it is only partly medium of exchange, Gold my friends, is mostly a medium used only during wealth transfers...history has shown us this many times over, and yet few ever recognise this.

Again, vote me down all you like, I'm still gonna tell it as it is.

"A nation can survive its fools, and even the ambitious. But it cannot survive treason from within. An enemy at the gates is less formidable, for he is known and carries his banner openly. But the traitor moves amongst those within the gate freely, his sly whispers rustling through all the alleys, heard in the very halls of government itself. For the traitor appears not a traitor; he speaks in accents familiar to his victims, and he wears their face and their arguments, he appeals to the baseness that lies deep in the hearts of all men. He rots the soul of a nation, he works secretly and unknown in the night to undermine the pillars of the city, he infects the body politic so that it can no longer resist. A murderer is less to fear"
- Marcus Tullius Cicero -

Tue, 10/30/2012 - 19:11 | 2932990 THECOMINGDEPRESSION
THECOMINGDEPRESSION's picture

Feds: You know that Gold we thought we had?

Germany: Ja

Feds: Damaged due to water.

Germany: NEIN!

Feds: Comex flooded. So we wil deduct a certain amount from the leased bullion that we lent out to England who leased that out to ITALY who sold the leased paper to Spain who in turn sent the remainder amount via HMS Bounty..Unfortuntely there was a slight mishap with the courier as the crew abandoned the ship.. as it went...

(multiple shots could be heard over the phone)

 

Tue, 10/30/2012 - 17:57 | 2932912 ghengis86
ghengis86's picture

I can take a dump in a box and put an auditors seal on that too; doesn't mean I know or care how many pieces of corn are it in. You're not (and can't ) open it, so you'll just have to trust me.

Tue, 10/30/2012 - 19:54 | 2933122 Zero Govt
Zero Govt's picture

Have you seen the 'work' the Audit firms have signed their name to in the past years regards fraudulent Bankers balance sheets?

Auditors have been 'doing an Enron' every year since 2007 on, they've learnt nothing, they're going to put their crony careers out of work because of it

Tue, 10/30/2012 - 20:17 | 2933166 knukles
knukles's picture

I wouldn't know how many cornels of corn are in each squeeeze?

No

Can I count them?

No

Why?

It's traditional

Oh  Then how do I know it's there?

Because I said I ate corn and pooped.

Oh

(mildly disturbing)

Tue, 10/30/2012 - 19:24 | 2933077 SafelyGraze
SafelyGraze's picture

"At the current official U.S. government price, one of the vault’s gold bars is valued at about $17k.
At a $900 market price, the same bar is worth about $360k."

and at the former official price (before 1920), a bar is valued at about $8k.  

and at the currrent ESF/JPM paper price, a bar is valued at about $680k

and at the current pretend-gold to outstanding dollars price, a bar is valued at about $4 million.

and at the current actual vaulted unencumbered gold to outstanding dollars price, a bar is valued at $4 trillion. 

whatever

it's still 400 ounces, however you want to otherwise denominate it

 

Tue, 10/30/2012 - 21:01 | 2933258 SILVERGEDDON
SILVERGEDDON's picture

Reminds me of a song - " Don'y Cry For Me, Argentina "  The Fed was quoted today as saying " Well, they were Germans, and they asked for the German gold, in German accents, so we gave it to them - and now you are saing it was the wrong Germans ? Who knew ? "

Tue, 10/30/2012 - 17:38 | 2932864 Silver Bug
Silver Bug's picture

The German people will be lucky if they see 1 oz of that gold back. Good luck.

 

http://schiffblog.blogspot.ca/

Tue, 10/30/2012 - 17:42 | 2932879 SHEEPFUKKER
SHEEPFUKKER's picture

The German gold is not at the bottom of the NY Fed, it is at the bottom of the Sea of Okhotsk. Better luck next time gents.  

http://www.russkiymir.ru/russkiymir/en/news/common/news8210.html

Tue, 10/30/2012 - 20:09 | 2933148 CPL
CPL's picture

http://www.bloomberg.com/news/2012-10-29/polymetal-says-700-tons-of-gold...

 

Someone must have been concerned because it's on Bloomberg.  

 

I know where it is.  In the vast hidden cavern holding all the BreX gold.

Tue, 10/30/2012 - 18:22 | 2932960 Steaming_Wookie_Doo
Steaming_Wookie_Doo's picture

Funny story that this isn't the first time Germany's checked on the gold (which you can check out on Dr Joseph Farrell's site gizadeathstar.com).

Apparently from Hjalmar Schacht's own autobiography, he went to inspect Germany's gold in the vaults (back in the 30's) and the auditors couldn't find it. Schacht said to the head of the Fed, "that's alright I'm confident you'll find it. And even if you didn't I know you're good for it." What the hell is all that about? Of course the current BuBa rep sounded very similarly "confident".

As to someone's previous comment that water turns gold into tungsten, naw, it actually turns it invisible ;)

Tue, 10/30/2012 - 20:41 | 2933215 FreedomGuy
FreedomGuy's picture

Why wouldn't the Germans or anyone else not want their gold back? Why wouldn't we be willing to give it to them. After all, we do not settle debts in that barbarous relic anymore, right? All those FRN's are "good as gold", right?

Dream on.

If I am a sovereign nation concerned about about my country I get all that gold back to my country or at a minimum in a place controlled by my own people...like a vault in my own embassy or a location guarded by my own people where I can see and count and test it for tungsten. Then I wait for currency crashes.

Tue, 10/30/2012 - 21:23 | 2933332 Arisu
Arisu's picture

I can answer that: because the gold doesn't belong to "the Germans". What you meant is the "German government", and they my friend, are actively trying to deconstruct whatever is left of so-called "sovereignty".

Especially our finance cripple, Wolfgang Schäuble, is pushing for this vigorously. He also said in a recent interview that "at no point has Germany ever been fully sovereign since May 8th, 1945", see https://www.youtube.com/watch?v=vyApjTai5qk for original quote.

Tue, 10/30/2012 - 17:40 | 2932875 vast-dom
vast-dom's picture

all that security and trouble and the fed grand puba says gold ain't money? how does one reconcile this idiocy?

Tue, 10/30/2012 - 18:03 | 2932922 Rainman
Rainman's picture

Barbarous relics have value !

Tue, 10/30/2012 - 20:09 | 2933144 Zero Govt
Zero Govt's picture

Don't diss the Fed, they're having a really hard time of it, an even harder time grasping this new fangled thing about managing perception and the Feds stuffy corrupt public image. Here's the Feds scorecard amongst the pub lic, it ain't pretty...

Chairmans knowledge of Monetary History: 0/10

Confidence in Chariman: 1/10

Confidence in Fed/US Dollar policy: 3/10

Confidence in Feds Employment Mandate: 1/10

Confidence in Feds Banking Oversight: 0/10 

Most Negative Public Comments: "End the Fed" ..."Fuck the Fed" ...."Shoot Bernanke that MF'er"

Most Positive Public Comments: "The Chairman is a right nob" ...."Gold is a tradition, fooooooool"

Really is a piss-poor scorecard, not going well at all. You can see Benny has alot of work to do to turn this sinking Titanic of a public image around. Good luck with that Ben.

Tue, 10/30/2012 - 17:42 | 2932878 Ancona
Ancona's picture

Falak,

Actually, given enough time, everything is ultimately miscible in water....everything.

Tue, 10/30/2012 - 19:00 | 2933038 BandGap
BandGap's picture

Nope, there is such a thing as equilibria.

Tue, 10/30/2012 - 17:48 | 2932897 Id fight Gandhi
Id fight Gandhi's picture

But their type of "gold" likely rusts.

Tue, 10/30/2012 - 17:49 | 2932900 BigDuke6
BigDuke6's picture

No FP

but its a well known fact that water turns gold into tungsten.

honest!!

Tue, 10/30/2012 - 21:47 | 2933386 mjcOH1
mjcOH1's picture

And when it dries it shrinks.

Tue, 10/30/2012 - 18:14 | 2932941 Help Is Not Coming
Help Is Not Coming's picture

The Bank and its vaults are secured by the Bank’s own uniformed protection force. Twice a year, each federal officer must qualify with a handgun, shotgun and rifle at the Bank’s firing range.

So not only do they have their own police force but they also have their own firing range. Next they'll be telling us that they have their own subway line.

Tue, 10/30/2012 - 18:28 | 2932969 Urban Redneck
Urban Redneck's picture

Trains are more discrete and efficient for moving gold. 7,400 tons would be 740 truckloads truckloads to discretely move from point A to point B.

Tue, 10/30/2012 - 20:03 | 2933135 grunk
grunk's picture

Ben Bernanke: Mall Cop.

Tue, 10/30/2012 - 17:32 | 2932842 redpill
redpill's picture

You ask for miracles?  I give you the F.  B.  I.

Tue, 10/30/2012 - 18:13 | 2932940 fuu
fuu's picture

The quarterback is toast.

Tue, 10/30/2012 - 17:34 | 2932849 PUD
PUD's picture

Boomberg has a counter that is counting down the minutes and seconds to the futures open...fucking sick. Like a god damn dog race. "Investors"!!!

Tue, 10/30/2012 - 17:39 | 2932870 redpill
Tue, 10/30/2012 - 17:44 | 2932886 knukles
knukles's picture

Wasn't that taken at the last campaign stop?

Tue, 10/30/2012 - 18:28 | 2932970 Dr. Engali
Dr. Engali's picture

Okay that was just gross.

Tue, 10/30/2012 - 20:11 | 2933158 Heyoka Bianco
Heyoka Bianco's picture

What color pill will now erase that image from my head?

Tue, 10/30/2012 - 17:39 | 2932865 Cheesy Bastard
Cheesy Bastard's picture

It was built on bedrock?  Then it must be real.  Too bad for Fred, Barney, Wilma, Betty, Pebbles, Bam Bam, Mr. Slate, and Dino, though.

Tue, 10/30/2012 - 17:49 | 2932899 redpill
redpill's picture

Ahh the Flinstones, back when yelling at your wife in public was more socially acceptable.  WWWIIILLLLMMAAAAAA!!!!!!

Tue, 10/30/2012 - 20:21 | 2933180 knukles
knukles's picture

Old traditions die hard.
Ask Mrs. K

Tue, 10/30/2012 - 23:01 | 2933572 WmMcK
WmMcK's picture

That and having "gay old time".

Tue, 10/30/2012 - 17:58 | 2932916 Zero Govt
Zero Govt's picture

New York has earned a recent reputation as a centre of financial crime and fraud, whatever the dusty history brochures of the NY Fed says you have to deal with current realities and perceived image.

Back up the truck Germany

Tue, 10/30/2012 - 19:00 | 2933035 Winston Churchill
Winston Churchill's picture

Depends on what the meaning of 'it' and 'is' is.

We all know how flexible that can be.

Kein Geld.Auf wiedersehen.

Tue, 10/30/2012 - 17:38 | 2932866 Black Forest
Black Forest's picture

Especially that of Germany (wink wink)

Thanks, Tyler. Let me express my deep appreciation by a big wink wink in the opposite direction.

Tue, 10/30/2012 - 17:40 | 2932871 Motorhead
Motorhead's picture

Thanks for the "Trinkgeld", Deutschland.  We wouldn't have been able to fund all these wars and keep the Soviets out of Frankfurt and Munich without it.

 

Tue, 10/30/2012 - 17:40 | 2932872 chubbar
chubbar's picture

The bad news for the FED is that when it is finally discovered that some/all of the bars are tungsten, everyone will know for a fact it was a gov't job.

Tue, 10/30/2012 - 20:11 | 2933156 CPL
CPL's picture

I was waiting for someone else to say it.

Tue, 10/30/2012 - 17:42 | 2932880 yogibear
yogibear's picture

LOL, William Dudley replaced the gold bars with tungsten filled bars. You can make many tungsten filament  Glühlampes.

Tue, 10/30/2012 - 17:47 | 2932894 Black Forest
Black Forest's picture

Glühlampen

Tue, 10/30/2012 - 17:44 | 2932885 Zerohedge fan
Zerohedge fan's picture

Gold?

What gold?

How about a magic trick?

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

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

"Ta da!

It's...gone."

 

Tue, 10/30/2012 - 17:45 | 2932889 JPM Hater001
JPM Hater001's picture

Neo could get it out...

Tue, 10/30/2012 - 17:48 | 2932898 JustObserving
JustObserving's picture

Why is Germany's gold stored in New York?

"But also keep in mind, Eric, that there is no logic for central banks to keep their gold in other central banks any more.  

 

Under the days of a gold standard, there was a certain logic to it.  You settled trade balances with the movement of gold, by moving gold from one part of a vault to another part of the vault.  But we’re not on a gold standard any more.  So having gold stored in certain parts of the world doesn’t make sense any more.

 

Gold is now basically reserved for a rainy day or any kind of problem that comes up.  So it makes all the more sense for central banks to return the gold back to their home country, and have it safe and secure in their own central bank’s vault.”

 

http://kingworldnews.com/kingworldnews/King_World_News.html

 

Tue, 10/30/2012 - 18:16 | 2932939 zerozulu
zerozulu's picture

"central banks to return the gold back to their home country"

 

Who think Jews are stupid? 

 

i have never seen a Jew in a BMW or Mercedes Benz.

Tue, 10/30/2012 - 19:18 | 2933069 Karl von Bahnhof
Karl von Bahnhof's picture

Bentley?

Tue, 10/30/2012 - 17:52 | 2932903 Big Ben
Big Ben's picture

Eventually Germany will construct its own vault 100 feet underground and all of its "gold" will be transferred there, never to be seen again by mortal eyes.

Oh, and did I ever mention that I have my own vault 100 feet below my house containing 500 million (no wait, 750 million) ounces of pure 24K gold plus hundreds of tons of platinum and silver. But I'm not going to let any of you see it. You'll just have to take my word for it.

Tue, 10/30/2012 - 17:55 | 2932907 Zerohedge fan
Zerohedge fan's picture

So,your vault is even bigger than mine?

Tue, 10/30/2012 - 18:43 | 2933002 Mad Max
Mad Max's picture

It's only half the size of mine, and mine's 200 feet deep.

Tue, 10/30/2012 - 18:19 | 2932954 Urban Redneck
Urban Redneck's picture

Do you live in SE Asia or bank in Nigeria by chance?

Tue, 10/30/2012 - 17:56 | 2932904 percolator
percolator's picture

Didn't Mark Twain say something like the "gold" in the NY Fed's vault is empty with a liar in front of it.

Tue, 10/30/2012 - 17:55 | 2932910 Bicycle Repairman
Bicycle Repairman's picture

Germany's gold is a special isotope of gold: Heisenbergium.  It's there, unless you look at it.  So if Germany's gold disappears, then it will be the fault of the snoops.

Tue, 10/30/2012 - 18:01 | 2932920 buzzsaw99
buzzsaw99's picture

Otter: Flounder, you can't spend your whole life worrying about your mistakes! You fucked up. You trusted us! Hey, make the best of it! Maybe we can help.

Flounder: [crying] That's easy for you to say! What am I going to tell Fred?

Otter: I'll tell you what. I'll swear you were doing a great job taking care of his gold, but, you parked it with jpm last night and this morning, it was gone...

Flounder: Will that work?

Otter: Hey, it's gotta work better than the truth.

Bluto: My advice to you is to start drinking heavily.

Tue, 10/30/2012 - 18:03 | 2932924 The Gooch
The Gooch's picture

"obviates the need to search vault employees" 

Or for them.

Tue, 10/30/2012 - 18:06 | 2932929 Dr. Engali
Dr. Engali's picture

It seems like a lot of expense and effort to secure such a barbaric relic. I'm curious why paper, as "valuable" as it is, doesn't get the same treatment.

Tue, 10/30/2012 - 19:33 | 2933087 Zero Govt
Zero Govt's picture

look if bubble Ben says Gold isn't money, it's a "tradition" that's a fact.

Ok Gold has tradionally been money throughout history but let's not ruffle Ben's beard with The Idiots Guide to the History of Money 

He's Fed Chairman, memory loss and being a village idiot (academic) is a tradition there

Tue, 10/30/2012 - 18:09 | 2932934 Opinionated Ass
Opinionated Ass's picture

Safe and sound...and the folks we lent your gold to bought a nice pile of sand bags. Plus generators (that work), a neighboring hotel, Greece etc.

http://www.economicpolicyjournal.com/2012/10/goldman-sachs-our-buildings...

Tue, 10/30/2012 - 18:16 | 2932944 Elzon1
Elzon1's picture

15 Tons little man, put that shit in my hand!

 

If that money doesn't show then you owe me owe me, oh!

Tue, 10/30/2012 - 18:21 | 2932955 Barnaby
Barnaby's picture

Oh God John McTiernan was right! Anybody know the whereabouts of Jeremy Irons?

Tue, 10/30/2012 - 18:23 | 2932961 Schmuck Raker
Schmuck Raker's picture

"...the New York Fed engages in foreignexchange intervention on behalf of the U.S. Treasury and the Federal Reserve System."

Enough said.

Tue, 10/30/2012 - 19:44 | 2933107 Zero Govt
Zero Govt's picture

First ZH nabbed the BIS currency manipulators, now the NY Fed are lassoed

Tue, 10/30/2012 - 18:26 | 2932965 Gringo Viejo
Gringo Viejo's picture

...."few have ever asked to examine their gold."  Ah, there's the rub................

Tue, 10/30/2012 - 18:28 | 2932971 mr. mirbach
mr. mirbach's picture

If 216 million troy ounces is 22% of the world’s official monetary gold reserves, then total official gold reserves is approx. 982 million troy ounces. 

982 million troy ounces divided by 7 billion people equals 0.1403 troy ounce per person on the planet...NOT enough gold to properly back a global currency.

Reduce population 85% to the Agenda21 targets and then who gets to keep the dead's gold?? At that point would currency even be necessary?



Tue, 10/30/2012 - 18:34 | 2932982 Opinionated Ass
Opinionated Ass's picture

Sorry. Any given amount of money is enough to use as a medium of exchange. And ideally, it should be scarce. What could that possibly be?

Tue, 10/30/2012 - 20:25 | 2933188 knukles
knukles's picture

Virgins?

Tue, 10/30/2012 - 23:05 | 2933585 WmMcK
WmMcK's picture

I was going to say an honest man but like your answer better.

Tue, 10/30/2012 - 18:32 | 2932972 jonjon831983
jonjon831983's picture

What if the molemen dig underneath it?

 

Obviously, they would've wasted their time, but what is the protection on the side or bottom walls of the vaults.

 

If someone was motivated enough it might be possible to dig below the 80 ft vault layering.

Tue, 10/30/2012 - 18:45 | 2933006 Mad Max
Mad Max's picture

I would imagine they have vibration sensors to detect tunneling.  That isn't hard to do.

Tue, 10/30/2012 - 19:24 | 2933076 ziggy59
ziggy59's picture

Subways, not the sandwhich chain, vibrate . Rock carries sound and vibration quite well .

Tue, 10/30/2012 - 19:20 | 2933064 Urban Redneck
Urban Redneck's picture

#5 rebar @ 3"OC horizontally, vertically, and laterally, min 4kpsi concrete min 12" thick;

wall floor and roof density is actually in the same ballpark as the fancy doorway...

yes, vaults generally have vibration sensors (in addition to other)

slow and steady doesn't win the vault penetration game.

Tue, 10/30/2012 - 18:34 | 2932980 adr
adr's picture

So, the amount of gold stored is so heavy that the vault needs to rest on the bedrock below NYC. But, it is stored on wood pallets stacked on top of each other.

Damn that is some strong wood.

Tue, 10/30/2012 - 18:35 | 2932985 kill switch
kill switch's picture

OT,,,But it is ...........

http://www.youtube.com/watch?v=ZLQ7klqYE_4

Tue, 10/30/2012 - 18:38 | 2932992 sangell
sangell's picture

Just remember the spaghetti western For a Few Dollars More where the most secure bank in El Paso had nothing in the vault. The money was in the bank presidents office in a wooden liquor cabinet.

Tue, 10/30/2012 - 18:47 | 2933011 alentia
alentia's picture

So basically, if the gold is washed away, destroyed by natural disaster (breaking of granite plate) or someone pull a Grueber stunt. Fed will be obligate to repay the owners at the rate of $42.22 per ounce. No wonder they will stick with the rate until something as above is going to happen.

Tue, 10/30/2012 - 19:54 | 2933121 helping_friendl...
helping_friendly_book's picture

So I've been saying for over a year.

Wed, 10/31/2012 - 05:37 | 2933893 Urban Redneck
Urban Redneck's picture

No.

Tue, 10/30/2012 - 19:14 | 2933060 ziggy59
ziggy59's picture

So they are protecting what? They are presuming they are guarding gold.. has the gold there been assayed before being vaulted? And by whom? It's the citizens of the US gold, not the FEDs...by the way, how much do we get charged by the crooks to be custodians?

Tue, 10/30/2012 - 19:14 | 2933061 mayavision2012
mayavision2012's picture

"The massive walls surrounding the vault are made of a steel-reinforced structural concrete."

OMG! Don't they realize that if some sort of kerosene fire breaks out down there, those steel reinfocements are going to melt?  That's what NIST told us...'member?

 

 

 

Tue, 10/30/2012 - 19:16 | 2933063 tony bonn
tony bonn's picture

if the entire fed bank vault had been washed to sea germany would have lost nothing....

Tue, 10/30/2012 - 19:41 | 2933105 SpanishGoop
SpanishGoop's picture

Water didn't dissolve it.

So what, now wait for an earthquake so it can sink through the bedrock ?

 

Tue, 10/30/2012 - 19:53 | 2933115 Downtoolong
Downtoolong's picture

Now the Fed has an excuse for telling Germany how their gold was lost.

Meanwhile, in the jobs section of the NY Post:

WANTED

Professional divers.

Deep salvage experience a must.

Submit resume with references, i.e., next of kin.

Ask for Jamie or Blythe (212) 25-HEIST.

 

Tue, 10/30/2012 - 19:56 | 2933125 grunk
grunk's picture

Sorry.

Your gold was on the H.M.S. Bounty.

We'll compensate you with Treasuries.

Tue, 10/30/2012 - 20:19 | 2933174 Heyoka Bianco
Heyoka Bianco's picture

The Bank’s security arrangements are so trusted by depositors that few have ever asked to examine their gold.

"These aren't the droids you're looking for! We can go on about our business!"

inspired by Florentine Renaissance places

Do they mean like the palazzo of the Medici, who showed them stinkin' Heebs how to really turn someone else's debt into personal power (them Renaissance Popes spent money like Elton John)? These doucherags are none too subtle about their aims and inspirations, are they?

Tue, 10/30/2012 - 20:38 | 2933211 Never One Roach
Never One Roach's picture

How do you say, "CORZINED" in German?

Tue, 10/30/2012 - 21:53 | 2933406 bugs_
bugs_'s picture

gold bars unlike rats are NOT excellent swimmers

Tue, 10/30/2012 - 22:06 | 2933438 Tango in the Blight
Tango in the Blight's picture

I only care about my precious. Let them care about the bilge water in their basement (which contains as much gold in it as was found in Al Capone's vault).

Wed, 10/31/2012 - 07:22 | 2933934 Svendblaaskaeg
Wed, 10/31/2012 - 09:39 | 2934206 Random
Random's picture

Why do you guys assume that Germany's leaders are any different to "insert random country"? If their leaders are no different why would they pull the trigger on the current system (demand the gold)? If they are honest, how did they made it through the screening (all the climb up the political ladder up to global prominence)? Are they stupid to not know what is accepted wisdom @ ZH? If they are not stupid why are they going with the game? Revert to point 1 for further information.

Wed, 10/31/2012 - 09:55 | 2934248 acrabbe
acrabbe's picture

I just thought of something. Call me crazy, but it's quite plausble, given their track record on 9/11, in Iraq, Libya, etc... I mean look at the Krim fiasco. Right in front of our bloody faces, with a laugh! Anyway, here it is... What if this haarp/weather-modification-technology hurricane (eye pressure of a cat 3 hurricane but windspeed of a cat 1. haarp giveaway) was steered towards NYC in order to flood lower MH, thereby evacuating it. So they could unload all of the gold out of the Fed with the guarantee of Federal Disaster Evacuation protocols to ensure no eye witnesses and to camouflage the concealed but massive deployment of their equipment/apparatus to lift/transport said gold?

Think about it. I mean really fucking think about it. Germany is just coming under pressure on its gold custody. EU is destabilizing. Whatever clutch time crunch time suck it up and pull the trigger moment that exists monetarily is coming. If this WHOLE FINANCIAL CRISIS that has been systematically financially engineered over the past few decades is really a heist (the heist of the millenia?), then it obvisously isnt over. is infact ongoing and has critical points during which the bad guy either gets away clean or gets caught red-handed and has to shoot his way out. I do believe this is what we are witnessing. Hence the crazy shit like a double child homicide to intimidate, while big media cooperates in the coverup. That smacks of NDAA ant-terror national security terrorist kill-list shit. Dead serious.

This October Surprise slash weather mod program experiment on the back of the Krim/CNBC/$43Trillion bankster lawsuit coverup shows there are large-scale magnitudal glitches in the matrix happening right now.

when i think muppets, i think zombies walking around with shitstains in their pants. That's how blind i think people are to this shit right now. They're in too deep.

 

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