All Aboard The Gold Repatriation Train: First Germany, Next: The Netherlands?

Tyler Durden's picture


While moustachioed managers, contrary to the far better insight of their superiors, and mainstream spivs are trying to talk down Germany's somewhat stunning shift in thinking - i.e. to repatriate its gold - as nothing but political pandering (or cost-saving); it seems, just as we predicted, the rest of the world are seeing this crack-in-the-confidence-armor the same way we have suggested. As we noted here, the first party to defect from the prisoner's dilemma of all the bulk of global gold being held by the Fed, defects best (then the second, or even the third perhaps) and sure enough, via RTL, we see the Dutch CDA party has requested that Holland's gold supply be repatriated. Who next?

The Dutch government says it has 612 tonnes of gold - with a value of around E24 billion - and is thereby in the top 10 of countries with gold reserves. The bulk of the Dutch gold reserves is in America and, to a lesser extent, in Canada and the United Kingdom. The rest, about 10 percent, is in Amsterdam.

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Wed, 01/16/2013 - 15:59 | 3159211 economics9698
economics9698's picture

42 years of fiat hell may just be about to end.

Wed, 01/16/2013 - 16:04 | 3159227 Popo
Popo's picture

The best way to think of this gold repatriation panic is to remember the Burning Theater rule:   If some people panic and run, other people will die.   But if everyone walks calmly to the exit everyone will live.  


So... what should you do?  



Wed, 01/16/2013 - 16:05 | 3159251 The Juggernaut
The Juggernaut's picture

The globe is in a house call! Who will default on the gold delivery, bitchezzzz?!?

Wed, 01/16/2013 - 16:08 | 3159267 Pladizow
Pladizow's picture

Starting with a domino 5 millimeters tall and increasing each successive domino by 150%, the 29th domino will be large enough to topple the Empire State Building.

Wed, 01/16/2013 - 16:13 | 3159283 ParkAveFlasher
ParkAveFlasher's picture

Unfortunately, the only means to ship the Dutch their very dangerous and cumbersome gold from NYC is mass-sponge-migration-tow along the Atlantic seabed. 

ETA: 2020

Wed, 01/16/2013 - 16:19 | 3159317 trav777
trav777's picture

Dutch gold is also buried underneath a lot of other stuff

Wed, 01/16/2013 - 16:22 | 3159332 THX 1178
THX 1178's picture

They call this a positive feedback loop. Whoever they are.

Wed, 01/16/2013 - 16:36 | 3159405 Manthong
Manthong's picture

You could fit 600 tons of gold in the back of a regular semi with room to spare.

I wouldn’t give you much for the suspension or the asphalt under the collapsed wheels, but volumetrically speaking, you could do it.

It's just a good thing that global mining capacity can replace all the leased gold that does not yet exist in short order.. or on a German time scale, 7 years.

Wed, 01/16/2013 - 16:45 | 3159444 ziggy59
ziggy59's picture

A ton of gold is a 15 x15 x 15 inch cube

Wed, 01/16/2013 - 16:49 | 3159457 The Juggernaut
The Juggernaut's picture

...So wait.  The first two countries have most of their gold in the USA?

Wed, 01/16/2013 - 17:04 | 3159547 Manthong
Manthong's picture

Um, more like most of their “notional” gold in the USA

--(hypothecated) gold and gold receivables.

Does anybody have any evidence at all, given the fiduciary performance of the elites in control of all banking, sovereign and commercial, that, the same practices that apply to all other “assets” do not apply to gold accounting?

..I didn’t think so.

Wed, 01/16/2013 - 17:26 | 3159648 Kitler
Kitler's picture

"Only when the tide (gold) goes out do you discover who's been swimming naked."

@Warren Buffet

Wed, 01/16/2013 - 17:43 | 3159729 DaveyJones
DaveyJones's picture

it's a different kind of love

Wed, 01/16/2013 - 16:53 | 3159482 ParkAveFlasher
ParkAveFlasher's picture

What's most problematic is that gold doesn't float (except during terrible storms).  This complicates the feasibility studies somewhat, also, gold doesn't react to salt, and as everyone knows, salt does indeed float.

Wed, 01/16/2013 - 17:39 | 3159709 DaveyJones
DaveyJones's picture

salt and no floating - sounds like Osama

Wed, 01/16/2013 - 17:20 | 3159624 Albertarocks
Albertarocks's picture

I knew gold was heavier that steel, even heavier than lead.  But that heavy?  I thought you were exaggerating so I worked it out.  You are correct.  Wow!  [14.2" actually]

Wed, 01/16/2013 - 17:40 | 3159718 ParkAveFlasher
ParkAveFlasher's picture

Welcome to the party, pal!

Wed, 01/16/2013 - 17:45 | 3159728 Albertarocks
Albertarocks's picture

Thanks, pal!  The answer is: an Olympic sized swimming pool to a depth of 18 feet.

Wed, 01/16/2013 - 16:48 | 3159452 Enslavethechild...
EnslavethechildrenforBen's picture

Just send them a few GLD shares. It's the same thing, right?



Wed, 01/16/2013 - 17:42 | 3159724 CPL
CPL's picture

I believe that's the plan...that or tungsten after the germans seperate the real from the foil wrapped.


See, it's who is last in line is the one that loses here.

Wed, 01/16/2013 - 18:12 | 3159850 BoNeSxxx
BoNeSxxx's picture

And people call Hugo Chavez nuts... if memory serves correctly, he beat the Germans to the head of the line by about a year. 

Crazy alright... crazy like a fox.

Wed, 01/16/2013 - 19:15 | 3160126 Pseudo Anonym
Pseudo Anonym's picture

deep storage:

It's just a good thing that global mining capacity can replace all the leased gold

Wed, 01/16/2013 - 16:27 | 3159360 resurger
resurger's picture


Thu, 01/17/2013 - 02:45 | 3159371 jaap
jaap's picture

RTL Z beurscomentator Mathijs Bouman vindt dat terughalen van het Nederlandse goud logisch lijkt, maar het niet per se is: ''in 1938 is een flink deel van de Nederlandse goudvoorraad naar Londen en de VS verscheept. In de Tweede Wereldoorlog namen de Duitsers echter het goud dat in Nederland was achtergebleven mee. je kunt dus beter de goudvoorraden spreiden''.


Unless the Americans are the new Germans....

Wed, 01/16/2013 - 16:19 | 3159318 Biosci
Biosci's picture

Oh come on, Ray.  The sponges migrated about a foot and a half.

Wed, 01/16/2013 - 16:19 | 3159321 AlaricBalth
AlaricBalth's picture

Johann van der Smut wants his gold back. He loves GOLD!!!

Wed, 01/16/2013 - 18:34 | 3159671 Al Gorerhythm
Al Gorerhythm's picture

German ETA: 2020

(Bump, trample, trample,  KERTHUMP, squish, squish...... Stretcher bearer!!!!)

Dutch ETA : 2013.

Eat shit, Buba. 

Wed, 01/16/2013 - 16:14 | 3159289 Spider
Spider's picture

It only takes 612 tons of gold to make the top-10 list??  God help us if countries want to try to buy gold to actually back up their currencies...

Wed, 01/16/2013 - 20:54 | 3160517 Citxmech
Citxmech's picture

At least until Au is revaluated at $50k+/oz.

Wed, 01/16/2013 - 16:15 | 3159296 CH1
CH1's picture

"Sure! Here are a pile of rehypothecation receipts. Go right ahead and find your gold."

Wed, 01/16/2013 - 16:17 | 3159306 redpill
redpill's picture

2013, the year of vaporization

Wed, 01/16/2013 - 16:51 | 3159479 TIMBEEER
TIMBEEER's picture

2013, long Tungsten, long Trees/Pulp

Wed, 01/16/2013 - 17:58 | 3159797 FEDbuster
FEDbuster's picture

"Where is the GOLD???"

"Those are IOUs, they are as good as gold.  That one is for 500 kilos, you might want to hang on to that one."


Wed, 01/16/2013 - 16:20 | 3159324 Looney
Looney's picture

Speaking of rehypothetication...

There’s a simple, but very effective way to UN-HYPOTHECATE them. Just go to your bank and withdraw whatever money you have there – checking, saving accounts – all of it! Just leave a few hundred bucks to keep it open and, maybe, avoid paying the fee.


Every time you withdraw $10,000 of YOUR MONEY, you hurt them multiples of that… Basel II’s Capital Ratio requirement is 8%, so your freshly-withdrawn 10K actually costs your bank $125,000.


I ain’t no financial genius, nor an expert, but I figure that if a lot of people start withdrawing simultaneously (say within a week or a month), those bastards WILL feel it!




Wed, 01/16/2013 - 16:48 | 3159454 enloe creek
enloe creek's picture

I use a credit union which is about the friendliest place I do business with.  they have a low fee structure and online service is great, coffe in the lobby, what a deal


Wed, 01/16/2013 - 17:10 | 3159572 Freddie
Freddie's picture

Credit unions are better but they probably hold your account and others in a master account at Bank America, Chase or some other shithole.  Montana actually has a state bank. 

Wed, 01/16/2013 - 17:55 | 3159784 DoChenRollingBearing
DoChenRollingBearing's picture

+ 1

North Dakota as well.

Wed, 01/16/2013 - 16:58 | 3159517 Groundhog Day
Groundhog Day's picture

a good ol fashion bank run will do the trick.  bring down the house of cards real fast

Wed, 01/16/2013 - 17:30 | 3159658 Albertarocks
Albertarocks's picture

"Every time you withdraw $10,000 of YOUR MONEY..."

YOUR MONEY... exactly.  If you have your money in a bank, you're renting it to the bank.  The bastards are lucky to have it and the rent is way too low.  And they treat us like shit when we walk in there as if we're some sort of dirtbags who are lucky to even be their customers.  Fuck that... THEY ARE THE LOWLY RENTERS.  WE ARE THE OWNERS.  I agree with you totally and 100% and completely.  Take it away from them for a few months and see how long it takes for the arrogant bastards to start puking up blood.  Not very freakin' long.

Wed, 01/16/2013 - 18:45 | 3160000 CheapBastard
CheapBastard's picture


Wed, 01/16/2013 - 19:24 | 3160148 Pseudo Anonym
Pseudo Anonym's picture

even better than

Just go to your bank and withdraw whatever money you have

is to take possession of good delivery bars of gold and silver (1000oz) right off the comex. each bar is leveraged, supposedly, 100x.  just imagine the damage: each 1000oz good delivery silver bar delivered into private hands  destroys 100,000 oz of derivatives (paper silver). same goes for gold.  that is how one destroys the fraudulent system the quickest.  not by withdrawing paper dollars or buying stupid eagles that are already de-leveraged.

Wed, 01/16/2013 - 19:53 | 3160289 Pseudo Anonym
Pseudo Anonym's picture


Every time you withdraw $10,000 of YOUR MONEY, you hurt them multiples of that

are you suggesting that the central banks cannot print what was destroyed??  on the other hand, take 1000oz good delivery silver bar off any exchange and see "them" print a replacement bar.  game over, for fiat, if enough silver bars is taken off the wholesale market.

Wed, 01/16/2013 - 17:51 | 3159765 Racer
Racer's picture

And that is what they are doing with the US debt albeit a bit slower!

Wed, 01/16/2013 - 16:55 | 3159498 Groundhog Day
Groundhog Day's picture

It's "Tradition" to ask for your "barbaric relic" back

Wed, 01/16/2013 - 17:53 | 3159771 greensnacks
greensnacks's picture

45% of German gold sits in the US and they are planning to scale that back to 37% over the next 7 YEARS. Just seems more like housekeeping than some sinister, doomsday fiat armageddon. If the they suspected something was amiss, wouldn't they just try and take it all, in the next month? They are setting goals, 7 years out no-less, to have 1/2 THEIR gold on THEIR homeland. Seems reasonable for them to ask for a few of their barbaric relics back.

Wed, 01/16/2013 - 21:46 | 3160691 GCT
GCT's picture

Agree green.  But there ae two sides to every story.  They may be doing this slowly so as not to cause a serious rise in gold pricing.  One commentor may well have hit the nail on the head by stating they may indeed need to mine the gold to give to the Germans.  I think there is a shift in trust amongst the CB's or this would not be happening.  But who really knows.

Thu, 01/17/2013 - 10:59 | 3162165 fredquimby
fredquimby's picture


Thu, 01/17/2013 - 13:33 | 3162865 kchrisc
kchrisc's picture

But here, even if no one runs, someone is going to die because they leased/ sold that gold long ago. Better go to Beijing for it.

Wed, 01/16/2013 - 16:03 | 3159237 Alpo for Granny
Alpo for Granny's picture

"Hey Beavis....this is gonna be cool" uh huh huh huh

Wed, 01/16/2013 - 16:23 | 3159340 resurger
resurger's picture

I just love this chain reaction ....


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