Bundesbank Continues Golden Damage Control: Invokes Ghosts Of Simon Gruber And Goldfinger

Tyler Durden's picture

It appears that the Bundesbank has never heard of the saying: when in a hole, stop digging (neither has any Keynesian in the history of humanity, but that's a different story). For the full plotline on Germany and its tungsten gold, read here, here, here, here and here.

From Andreas Dobret, member of the Executive Board of the German Bundesbank, speech to FRBNY's Bill Dudley

Remarks on German gold reserves


Please let me also comment on the bizarre public discussion we are currently facing in Germany on the safety of our gold deposits outside Germany – a discussion which is driven by irrational fears.


In this context, I wish to warn against voluntarily adding fuel to the general sense of uncertainty among the German public in times like these by conducting a “phantom debate” on the safety of our gold reserves.


The arguments raised are not really convincing. And I am glad that this is common sense for most Germans. Following the statement by the President of the Federal Court of Auditors in Germany, the discussion is now likely to come to an end – and it should do so before it causes harm to the excellent relationship between the Bundesbank and the US Fed.


Let’s get back to facts and figures: I would like to remind you that our gold reserves are part of the German currency reserves. These were accumulated over time thanks, in part, to Germany’s economic boom in the 1950s and 1960s. Germany’s growing economic strength, especially its strong external position, resulted in rather large trade account surpluses, most of them acquired in US dollars. At that time, the International Monetary System, known as the Bretton Woods System, was dominated by the US currency. As long as this system was in force, which was up until 1971, the US Fed was obliged to exchange its currency for gold.


Any current account surplus thus resulted in an increase in Germany’s gold reserves. This gold was stored in US vaults for obvious reasons [ZH: sorry, we don't have an econ PhD: what are the "obvious reasons"?]. This was not only the case for the gold hold by the Bundesbank – it was, in fact, common practice. By the way: it was the only practical thing to do, since running a trade account deficit meant a decrease in gold stocks.


Thus, we are now looking back at sixty years not only of fruitful cooperation in many fields and international fora, but also of storing gold and trading via the New York Fed. As a matter of fact, it is sensible for us to do so in New York, as Frankfurt is not a gold trading venue.


Throughout these sixty years, we have never encountered the slightest problem, let alone had any doubts concerning the credibility of the Fed [ZH may, and likely will, soon provide a few historical facts which will cast some serious doubts on this claim. Very serious doubts]. And for this, Bill, I would like to thank you personally. I am also grateful for your uncomplicated cooperation in so many matters. The Bundesbank will remain the Fed’s trusted partner in future, and we will continue to take advantage of the Fed’s services by storing some of our currency reserves as gold in New York.


At the same time, you can be assured that we are confident that our gold is in safe hands with you. The days in which Hollywood Germans such as Gerd Fröbe, better known as Goldfinger, and East German terrorist Simon Gruber, masterminded gold heists in US vaults are long gone. Nobody can seriously imagine scenarios like these, which are reminiscent of a James Bond movie with Goldfinger playing the role of a US Fed accounting clerk.


While gold is important, we have to combat a crisis of confidence in the euro area. This is the task we need to concentrate on. And we will do so.


Thank you for your attention.

And that was it for Herr Dombret's comments. Which is good: because really, when in a hole...

As for the full true story, there is much more here, which we hope to reveal soon in its entirety. We are confident our German readers (and not only) would find the complete, historically-documented details, quite stunning.

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jaap's picture

In this context, I wish to warn against voluntarily adding fuel to the general sense of uncertainty among the German public in times like these by conducting a “phantom debate” on the safety of our gold reserves.


Pladizow's picture

Buba holds its gold not in the form of ingots, bars, or coins, but in teeth - and that's why there will never be an audit!

Dr Benway's picture

First they ignore you, then they laugh at you

TruthInSunshine's picture

Okay, I could sort of believe the prior statement that was released by someone at the Bundesbank, as ridiculous at it was...



...but to be honest, if they really did release this newer, even more bizarre statement, I somehow can't stop thinking they're just fuckin' with us now, bitchez.

Matt's picture

They may be the ones adding fuel to the fire by making a statement like this:


"While gold is important, we have to combat a crisis of confidence in the euro area. This is the task we need to concentrate on. And we will do so."

Admitting you have a currency confidence crisis?

icanhasbailout's picture

I heard the plot of Goldfinger was intended to clue the US people in to what had already happened to their gold reserves.

ThirdWorldDude's picture

Think Goldmember could've organized this one too:




"Anti-terror police are investigating whether nine tonnes of rat poison stolen together with an Austrian firm's lorry might be used to make explosives. RDX is not only one of the main explosives in torpedoes, rockets, and bomb warheads and also in use in very specialized detonators, blasting caps, and demolition charges - but is also used as a rat poison. An Austrian firm had been conned into transporting the poison after getting a request from a Ukrainian company that wanted it collected in Italy. But the logistics company from Kufstein, Tirol, lost contact with the load shortly after the rat poison was collected in Italy on 25 October. The company said the intention was for the load to be delivered to France. Shortly after the vehicle was loaded, it was no longer possible to reach the Ukranian company or the lorry driver. It is believed the driver was organised by the Ukrainian company. The company said they negotiated 30,000 transportations per year and had never experienced anything like this..."

strannick's picture

Germany leases out its gold to help suppress the price, then whines when the FED also leases out Germanys NY Gold. No honor amoung thieves, bagholding GLD, gold certificate, unallocated gold or allocated gold; holders.

First one jumping the ship is a rat, the last one still onboard is a chump. Guess that makes Chavez King Rat.

Al Gorerhythm's picture

I was more interested in the statement that they hold gold as part of their currency reserves and yet the US doesn't.

If the Germans claim their gold is money why can't the Bernank see it as such? Knowing the German's strong ties to "tradition", surely that can't be their rationale` for saving gold as money?

Not that currency is money though. They'll get it right one day and gold will have its way, but not through good management on their part.

Svendblaaskaeg's picture

".. Taxpayers’ money can only be the last resort.."


Correction: Taxpayers gold can only be the last resort IF we can find the taxpayers gold 

Good luck with that bwhahaha...



Svendblaaskaeg's picture

The best things in life are free
But you can give them to the birds and bees
I want ze Gold

You silly papers gives my ass a thrill
But silly papers won't pay my bills
I want ze Gold

Element's picture



"First they ignore you, then they laugh at you"


" ... then they elect you."

jeff montanye's picture

And, my friends, in this story you have a history of this entire movement. First they ignore you. Then they ridicule you. And then they attack you and want to burn you. And then they build monuments to you. And that, is what is going to happen to the Amalgamated Clothing Workers of America." General Executive Board Report and Proceedings [of The] Biennial Convention, Amalgamated Clothing Workers of America, 1914.

however, as pamperdue noted, a more common scenario might run: First they ignore you. Then they continue to ignore you. Then, if you manage to reach a point where they stop ignoring you, they attack you. Then you die.

TruthInSunshine's picture

Or something snaps and la Terreur, in one form or another, makes its reappearance.

Some speculate that jubilee was a pragmatic means to stave off bloody revolution, and was granted not really based on any pre-ordained & concrete timeline, but on the feedback vibration that the kleptocracy, whether the state and/or the church (which have worked hand in hand in an effort to control the masses throughout history), could sense was rising from the huddled, angry masses.

Svendblaaskaeg's picture

"Something is not right in denmark"

Correction: Denmark is fine - Euroland not so much


vast-dom's picture

more at phantom gold.

ZeroAvatar's picture

As long as they don't actually LOOK, and collapse the wave function, the box remains full of gold.

merizobeach's picture

"the box remains full of gold"

And empty at the same time!  Who said modern economists have never studied quantum physics?

Poor Grogman's picture

wave function indeed.


Wave goodbye to your gold that is....



Sabremesh's picture

Ah, yes, the famous quantum physics thought experiment - Goldfinger's hat.

philipat's picture

I understand that the NY Fed is also enquiring if BuBa would be interested in a Bridge they have for sale in Brooklyn??

Unfortunately, inspection is difficult at present but you know you can take our word for it.

JLee2027's picture

Bizarre? They think asking to see something that hasn't been seen in 33 years is Bizarre? Laughable.

UP Forester's picture

It isn't bizarre until they pull out the "Chewbacca Defense"....

upWising's picture

When you say "laughable" you are just showin' that you don't Love Amercia.  If you Loved Amercia the way Jesus Loves Amercia, you wouldn't be laughin' at somethin' so serious as The Holy Amercian Dollar.  

You need to watch more Television and believe everything it says.  You need to take your Medication as Directed.  You need to git to Church and listen to your Preacher and everthin' he got to say, and make a Great Big Generous Free Will Love Donation to his Ministry.  

But more than ANYTHING< you need Faith in the System!

Remember:  "Amercia is Jesus' Favorite Country! ©"


JLee2027's picture

In the sarcastic tone of Mr. Panos:

"Thank you for your Gold, Germany." (dumbasses)

Raymond_K_Hessel's picture

Didn't Germany buy a lot of our toxic sub-prime CDOs? When will they learn?

Wakanda's picture

Andreas, "die Dame doth protest zu viel".

Joebloinvestor's picture

What a jack ass.

He gives the same fucked up argument for not changing something because it hasn't blown up in their faces yet.

Check out the US Navy's explanation for the Missouri gun turret explosion, and you will find the same fucking logic.

I hope the Fed seizes the German gold just because it can (not because it needs to, but it will).

PUD's picture

Is there some practical reason why any nation should or would store their gold in another nation? Makes no sense.

Of course it makes no sense that some mineral dug from the ground at great cost to the environment for almost the exclusive use in vanity products should be worshiped like it is anyway. Hard to chew and doesn't burn well in a wood stove.

CH1's picture

Is there some practical reason why any nation should or would store their gold in another nation?

The idea was that they could (conveniently) transfer bars from one pile to the other when settling international accounts. 

Urban Redneck's picture

When despots fear losing control of their fiefdoms, they tend to park assets overseas in case they have to relocate.  Otherwise, there hasn't been a good excuse since the days of bell-bottoms and disco.

Manthong's picture

..by storing some of our currency reserves as gold in New York

Er.. does that mean Bernanke was not telling the truth to Congress when he attested that gold is not money?

Bay of Pigs's picture

Is that you Math Man? He's finally back!

earleflorida's picture

last i checked, our solar system is not pro-creating any more planets... and if by chance our oceans become our future land mass, and that's a big if?, were fuck'd, period!

Ps.  Our star is all we got and we are its last bastion of gambits in a finite golden triangle intangible forever to mankind? 

gold is what's for dinner... the only long-lasting meal in town-- got Gold 

nmewn's picture

Yippie kay yay mother____s.

toothpicker's picture

Like bad actors in a crappy play.

Seize Mars's picture

Slightly OT, what is the best method of purity analysis? X-ray fluorescence?

CH1's picture

Some are using ultrasound.

UP Forester's picture

...along with three bad-ass niggers with a blowtorch and a pair of pliers....

Rattling Bones's picture

It shouldn't taste good with peanut butter.

defender's picture

Melting the gold down and re-casting the bullion.  At the same time, a sample of the molten gold should be analyzed for purity.

Guaranteed accurate results every time.

Urban Redneck's picture

Frankfurt may mot be a gold trading center, but Zurich, which is right down the road, most certainly is a gold trading center.  There are even rail lines connecting the two.  During World War 2, when Germany was AT WAR WITH THE USA, the Bundesbank used the SNB, and a whole swath of central banks still use the BIS for both physical and paper gold "storage."

Keep digging Buba... 

Unholy Dalliance's picture

I think you will find it was called the Reichsbank then. Probably named after Hitler's Third Reich or something like that…

Bicycle Repairman's picture

It was the Reichsbank in the Kaiser's time.

lewy14's picture

And indeed for a very long time before. And in Austria, and in many germanic countries whose languages use the same root. E.g. the Swedish central bank is the Riksbank.

"Reich" only became an un-word after WWII.