Austrian Parliament Hears 80% Of Austrian Gold Bullion Reserves In London

Tyler Durden's picture

From GoldCore Gold Bullion

Austrian Parliament Hears 80% Of Austrian Gold Bullion Reserves In London

Today’s AM fix was USD 1,729.75, EUR 1,344.23, and GBP 1,084.35 per ounce. 
Yesterday’s AM fix was USD 1,726.75, EUR 1,350.71, and GBP 1,085.05 per ounce.

Silver is trading at $33.38/oz, €26.00/oz and £21.00/oz. Platinum is trading at $1,588.25/oz, palladium at $650.60/oz and rhodium at $1,060/oz.

Gold inched up $1.50 or 0.09% in New York yesterday and closed at $1,729.20. Silver surged to a high of $33.378 and finished with a gain of 0.51%. Gold is now some 1% higher for the week and silver nearly 3% higher for the week and higher weekly closes will be bullish from a technical perspective.

Cross Currency Table – (Bloomberg)

Gold priced in Japanese yen rose to a nine-month high this morning at 143,262 yen/oz and is on track for its biggest weekly rise since February, up 2.8% according to Reuters.

The yen came under heavy pressure from growing speculation that the Bank of Japan would aggressively ease monetary policy in the coming months.

Gold trading is quiet with the US markets closed for the Thanksgiving holiday today and the early close tomorrow.

Given the degree of uncertainty in the world - from the Middle East to Greece and the Eurozone debt crisis to the US fiscal cliff – most traders will be reluctant to take sizeable positions long or short and lacklustre, directionless trading may continue.

However, any of these risks could lead to a sudden spurt of safe haven buying that leads to gold eking out gains this shortened week.

The Austrian central bank keeps most of its 280 metric tons of gold reserves in the United Kingdom, Vice Governor Wolfgang Duchatczek was quoted as saying in the finance committee of the country’s parliament today, according to Bloomberg.

Answering lawmakers’ questions, Duchatczek said 80%, or 224.4 metric tons of the metal was stored in the U.K., 17% or 48.7 metric tons in Austria and 3% in Switzerland, according to a summary of a closed-door committee meeting provided by the parliament.

The reserve has been unchanged since 2007, Duchatczek was quoted as saying. The central bank has earned 300 million euros ($385 million) over the last ten years by lending the gold, he said.

Goldman Sachs is bullish on silver in 2013 and believe it will rise in price.

Silver is seeing strong investment demand due to high inflationary pressures, monetary easing and low interest rates, Goldman Sachs said in a note on silver stocks.

High silver prices in recent years have led to increased supply from mine production and old silver scrap.

Goldman noted that world silver supply grew by just 2.2% in 2012, driven by a 3% gain in mined production and a 1% increase in scrap supply.

Gold Prices/Fixes/Rates/Vols – (Bloomberg)

Gold is poised to rise above $2,000/oz next year according to Merrill Lynch Wealth Management.

They are wary of industrial metals and say that the lack of clarity on demand outlook and policies in China dim prospects for industrial metals.

(Bloomberg) -- German Household Heating Oil Stockpiles Rise to 59.5% in October
German household heating oil tanks were 59.5 percent full last month, compared with 58.4 percent in September, according to data from Ipsos Loyalty GmbH.

Commercial inventories were at 41.6 percent in October, down from 43.8 the previous month, the data showed. Germany is Europe’s largest market for heating oil.

(Bloomberg) -- Gold Futures in Shanghai Rise; Silver Futures Reach 6-Week High
June contract gains as much as 0.5% to 353.26 yuan/gram on the Shanghai Futures Exchange. Contract trades at 353.05 yuan at 9:02 a.m. Singapore time, climbing for the third time in four days. Jan-delivery silver advances as much as 1.4% to 6,938 yuan/kg, most expensive since Oct. 12. Cash bullion of 99.99% purity increases 0.4% to 347 yuan/gram on the Shanghai Gold Exchange; vols. were 3,541 kg yesterday vs. 4,227 kg on Nov. 20

(PTI) -- Reliance Money targets Rs 2 trillion gold market with new plan
Targeting an estimated Rs two lakh crore unorganised (rpt) unorganised gold market in the country, Reliance Money today launched a new daily gold accumulation plan under which customers can invest as low as Rs 1,000 per month. Under the plan, named Reliance My Gold Plan, the customer can invest a minimum of Rs 1,000 per month and the company would use the money for purchase of gold on a daily basis and the total accumulate funds can be redeemed for gold coins or jewellery at the end of the investment tenure.

The plan was launched here today in association with the World Gold Council as its marketing partner.

(Bloomberg) -- Reliance Money, World Gold Council Start Gold Investment Plan 
The plan allows for a minimum investment of 1,000 rupees, says Vikrant Gugnani, chief executive of broking and distribution business at Reliance Capital Ltd.

Investors can opt for investment period of 1 to 15 yrs, Compulsory delivery of physical gold, no transaction tax.

Silver Spot $/oz, 4 Years – (Bloomberg)

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


Gold Advances as Central Banks Join Investors Adding to Holdings - Bloomberg

Gold Advances for Second Time in Three Days as Central Banks Buy - Bloomberg

Gold steady ahead of possible Greek bailout deal - Reuters

Gold ends higher, stays below $1,730 – Market Watch

Gold Prices Edge Higher, Supported By Central Banks’ Buying – TV E News


How Chinese Demand Could Send Gold Soaring – Money Week

QE to Push Gold Higher - "Will Ultimately Eclipse $5,000" - CNBC

The Day the World Ended – You Tube

10 People Who Brought Us To The Edge Of The Fiscal 'Cliff' – Huffington Post

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Itch's picture

Lend me your gold, i want to show you a trick!!

GetZeeGold's picture



....and it's gone.

strannick's picture

Leasing your car out for 200 bucks a day is only a good deal if you get your car back. The Austrians havent earned 300 million euros for leasing their gold, they earned it for selling their gold. They give Austrians a bad name.

BaBaBouy's picture

YES, 24K PLATED Tungsten is Quite Usefull These Dayz...

Pinto Currency's picture


The SS AUSTRIA is making big fiat bucks by leasing out its life boats.

Life boats have no yield and they cost money to store, so why not generate some fiat credits by leasing them out.

knukles's picture

von Meises is rolling around in his grave

Half_A_Billion_Hollow_Points's picture

imagine the wars to come when the populations find out their gold was vaporized.  

mr_T's picture

Austrian school of econ forgot to mention...
1. It's not yours unless u hold it.
2. Gold silver are not sound money if other are contolling it for you.
3. He who withdrawls first wins... Hugo, three pointer from back court.


scatterbrains's picture

In a world running out of good collateral what's wrong with borrowing against a warehouse full of shiny tungsten? specially if both parties to the re-rehypothocation are down low on the transaction ?  I mean if your going to pull the wool with efsf/esm etc why not this sort of thing ? Just don't let anyone get too close to the bars and it's all good.

TPTB_r_TBTF's picture

Some of my Gold is held in London,

and i have a document to prove it.

saveandsound's picture

no, no, no.... you've got to say "... _aaaand_, it's gone."

later: "Not anymore, you don't."

and afterwarts: "Then please stand aside for people who actually have money with us."



NoTTD's picture

Do you want to see something really scary?

defender's picture

Just because I haven't seen anyone else do the math on this, if my calculations are correct they got an average of 4.15 euros per ounce per year off of leasing out their gold.  I think that that works out to less than 1% return per year.  Sounds a little low to me, but I don't do any futures trading, so I don't have any reference point.  Somebody is getting a good deal out of this, but I don't think it is the Austrians.

D-Man's picture

They left their gold in london like I left my virginity in london. Don't think either of us are going to get it back!

BaBaBouy's picture

Well at least you got LAID, Austria is getting just plain Fucked...

Captain Benny's picture

Silly Americans, Bangers and Mash isn't something you do with a Penis.

orez65's picture

Are these Austrian bankers morons?

"The central bank has earned 300 million euros ($385 million) over the last ten years by lending the gold, he said."

That means that it has been sold, by whoever borrowed it, then re-hypothicated over and over again.

In other words their gold is "... hasta la vista baby ..."

What a bunch of shit heads!!

GetZeeGold's picture



Are these Austrian bankers morons?


Not sure why they'd be different from any other bankers.

mick_richfield's picture

Of course they are not morons.

They are undeclared agents of a foreign power.


anarchitect's picture

This Wolfgang Duchatczek guy MUST be a moron.  He actually bothered to answer in what appears to have been a truthful manner.  Something's wrong with him, that he didn't claim the information was a state secret or whatever.  Since when do central bankers demonstrate a shred of transparency with respect to their gold activities?

fleur de lis's picture

Austrian gold reserves in London? And just who is watching the vault? Remember--London is Rothschild tinsel town and they have made it a habit of collecting everybody else's gold for safekeeping. Permanently.

And what makes anyone think that Austria will ever see that gold again without a military entry and seizure of said gold? Austria had better either get used to working around the remaining 20% (assuming they haven't also entrusted that to another Rothschild bank) or plan some way of recovering the remainder by force.

Non Passaran's picture

Doh! Rothschild Schmotschild. 

Who gives a rat's ass who is the counterparty.

If you store it elsewhere soon it may be gone.

I can prove it to you if you want (store your gold with me). 

Take your conspiracy claptrap elsewhere.

fleur de lis's picture

Those who lose their gold to the counterparty. How much did the central bankers pay you to write that?

LeisureSmith's picture

One ring to rule them all, one ring to find them,
One ring to bring them all and in the darkness bind them.

Ehm... The ring of steel, City of London.

All those innocent ingots... Oh the humanity.

WALLST8MY8BALL's picture

The Austrian central bank keeps most of its 280 metric tons of  Titanium reserves in the United Kingdom

fleur de lis's picture

Well they'll have to choose between the gold and the titanium, because their armed forces won't be able to manage two wars.  Is there no one in Austria who can design vaults to preseve their own reserves? Do they really have to go to the Rothschilds? Are they so stupid to think that the Rothschilds are capable of returning an ounce of gold without a fee amounting to its worth? 

knukles's picture

Hey, at least he's on the right track.... s'not gold

(get it, "snot" as in boogers, huh huh hu hu hu)

youngman's picture

This is interesting....cutting costs or jumping ship.........


Barclays Plc (BARC) withdrew today from floor trading on the London Metal Exchange, the world’s biggest metals bourse, as the bank reviews its businesses to cut costs.

The London-based bank became a Category 2 member of the exchange with immediate effect, meaning it will continue to trade electronically and by telephone, the LME said in a notice to members today. Barclays remains “deeply committed” to the metals market, it said in a statement today. from Bloomberg

GetZeeGold's picture



Barclays remains “deeply committed” to the metals market


Yeah they are....but don't look for them to be delivering anything anytime soon.

Fuh Querada's picture

The Australian parliament would be more interesting. Fair dinkum cobber.

Diplodicus Rex's picture

"The central bank has earned 300 million euros ($385 million) over the last ten years by lending the gold, he said."

In the context of Billions of dollars worth of fraud that is an absolutely trivial amount. Why put your gold reserves at risk at all for such a derisory amount? Unless, of course, you know it has already gone. Admitting that would lose you £385m, so I suppose continuing to pretend is a no-brainer.


fleur de lis's picture

He's another one on spiked kool-aid. He's doing business on fraudulent terms. He will never know how much the central bank earned because the owners cook the books. For all he knows the whole country is in hock.

yabyum's picture

I would sure like to see that gold, WAIT maybe I should worry about our gold in Fort Knox.

fleur de lis's picture

Fort Knox hasn't seen our gold in decades.

Zgangsta's picture

Wow...even the Japanese are starting to lose it!

How in the world did this happen in Japan before Greece??

Never One Roach's picture

"Don't worry Wolfgang, your gold is in a segregated account."

GetZeeGold's picture



Thanks Jon......we knew we could trust you.

youngman's picture

Here is the conundrum...if everyone keeps quiet and cool....all is well...they can say they have your gold..and you can say you have gold....its a problem when someone in the game asks for their marbles back...then I think they will say we can´t deliver that right now....then TSHTF in my opinion....

Peterus's picture

Sending warships to fetch it is one last option. There is probably SOME of it left in this vault, so first to come in a manner that can't be circumvented (without declaring a war) will be able to get it back.

A Humble Man's picture

I would love to see the Austrian aircraft carriers cruising up the English Channel.

GetZeeGold's picture



The English thought the Vikings were tough....then came the Aussies....I just assumed you meant those guys.


The Vikings plundered Canterbury and seized all those in holy orders, including the archbishop ?lfhere. The following year they martyred him:

1012. Then on the Saturday the host became greatly incensed against the bishop, because he was not willing to offer them any money, and forbade any ransom to be given for him. Moreover they were very drunk, for wine had been brought to them from the south. Then they took the bishop, and led him to their tribunal, on Saturday evening, within the octave of Easter [19 April], and pelted him to death with bones and the heads of cattle; and one of them smote him on the skull with the iron [head] of an axe, so that with the blow he sank down and his holy blood fell upon the earth, and his holy soul was sent forth to God's kingdom. (Garmonsway, 142)

It seemed to the English that the world was coming to an end.



Word is it's Gordon Brown's head that will be on the chopping block this time.

BinAround's picture

Sending a warship might be a problem for land-locked Austria. 

Quinvarius's picture

If any of this gold existed, the bankers would do a full public audit and end the questions.  They are bankers.  This is their job.  But all they do is cover up, delay, and demand we trust them.  There is no reason for them to behave this way unless there is a massive problem.  I don't need a full confession like the rest of the sheep.  They don't have it.

fleur de lis's picture

Agree except for one thing--they are not just bankers, they are central bankers. There is a difference between professional bankers, who do their best to operate within guidelines and grow money, and central bankers who can't add or subtract, and only know how to steal. The problem is that the central bankers, who are ignorant and uneducated racketeers, make the rules.

The ordinary bankers you see who basically do their jobs and take care of their families are really nothing more than aphids in the scheme. The Corzines, Bernankes, Rothschilds, etc., of the world show up for extortion money and own the power structures to back up their threats. 

Notice how the racketeers are covered no matter how grand the theft, whereas some nobody who says or does the wrong thing is utterly destroyed. It's just the central bankers/racketeers protecting the loot from anyone outside the gang.

BinAround's picture

What are the implications of gold storage in London?  Does this mean the gold can be counted multiple times?  Fractional reserve gold holdings at the central bank level?  Does it enable the reported central bank gold holdings of Austria to be also reported as that for India and Germany?  Is this the primary problem with storage outside of the country?  Is so, is there no audit of the storage facilities that reconcile the holdings with the claimants?  Seems incredible if true?  If there is a ZeroHedge reader who is close to this activity, it would be great to hear from him on this topic.