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Bundesbank Official Statement On Gold Repatriation

Tyler Durden's picture


When we first heard about it, we thought Handelsblatt had gotten something very wrong. The implications were just so staggering. Turns out the news was spot on. Here is the official announcement from the Bundesbank, which roundly refutes all the spin the Frankfurt bank spoon-fed the people in October and November when it repeated time after time that there is nothing wrong with keeping German gold in NY and Paris, and on the contrary, it was better for everyone involved.

From the Bundesbank:

By 2020, the Bundesbank intends to store half of Germany’s gold reserves in its own vaults in Germany. The other half will remain in storage at its partner central banks in New York and London. With this new storage plan, the Bundesbank is focusing on the two primary functions of the gold reserves: to build trust and confidence domestically, and the ability to exchange gold for foreign currencies at gold trading centres abroad within a short space of time.

The following table shows the current and the envisaged future allocation of Germany’s gold reserves across the various storage locations:

  31 December 2012 31 December 2020
Frankfurt am Main 31 % 50 %
New York 45 % 37 %
London 13 % 13 %
Paris 11 % 0 %


To this end, the Bundesbank is planning a phased relocation of 300 tonnes of gold from New York to Frankfurt as well as an additional 374 tonnes from Paris to Frankfurt by 2020.

The withdrawal of the reserves from the storage location in Paris reflects the change in the framework conditions since the introduction of the euro. Given that France, like Germany, also has the euro as its national currency, the Bundesbank is no longer dependent on Paris as a financial centre in which to exchange gold for an international reserve currency should the need arise. As capacity has now become available in the Bundesbank’s own vaults in Germany, the gold stocks can now be relocated from Paris to Frankfurt.

* * *

So it took the Bundesbank over 10 years to figure out that "the Bundesbank is no longer dependent on Paris as a financial centre in which to exchange gold for an international reserve currency should the need arise."

Well, as long as it has nothing to do with the recent political schism between socialist beggar France and the only country left in Europe that is not an all out parasite, all is well.

Finally, compare the above statement with the following from November:

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.

Until we don't, three months later, and decide to repatriate said gold after all...


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Wed, 01/16/2013 - 09:33 | 3157147 economics9698
economics9698's picture

"By 2020, the Bundesbank intends to store half of Germany’s gold reserves in its own vaults in Germany."

To be changed to 100% by 2015. 

Wed, 01/16/2013 - 09:36 | 3157158 GetZeeGold
GetZeeGold's picture



Only half.....cause asking for all of it would be crazy.

Wed, 01/16/2013 - 09:38 | 3157169 JPM Hater001
JPM Hater001's picture

I see no reason to repatriate any of it in that case.  You are going to go to war to recover it eventually anyway.  whats the difference between half and all?

Wed, 01/16/2013 - 09:46 | 3157204 CH1
CH1's picture

The ONLY purpose of this statement is to keep the suckers asleep.

Wed, 01/16/2013 - 10:01 | 3157264 Pladizow
Pladizow's picture

"By 2020, the Bundesbank intends to store half of Germany’s gold reserves in its own vaults in Germany"

So the 2nd half will be written off as a complete loss!

Wed, 01/16/2013 - 10:02 | 3157273 GetZeeGold
GetZeeGold's picture



.....and it's gone.


It's gonna take some time to explain it.

Wed, 01/16/2013 - 10:05 | 3157288 Pladizow
Pladizow's picture

All of that repatriated gold will be mined between mid 2013 and 2020!

Wed, 01/16/2013 - 10:21 | 3157344 Rossalgondamer
Rossalgondamer's picture


A simple search of ZH would benchmark time for completed Europe to South American repatriation.

Then project upon West-to-East European transfer....minus English Channel boating accident.

Wed, 01/16/2013 - 10:33 | 3157375 Harlequin001
Harlequin001's picture

Hey, fuck, I mean, I believe him.

I mean, why not?

sounds reasonable...

Wed, 01/16/2013 - 10:39 | 3157394 The Juggernaut
The Juggernaut's picture

hahaha 0 to Paris... they'd tax it.  Then why the hell leave it in USA?  Their leaders are the biggest theives.

Wed, 01/16/2013 - 10:54 | 3157452 BaBaBouy
BaBaBouy's picture

"" "By 2020, the Bundesbank intends to store half""

Und 2020 ?

Und Only Half ?

Und Are You Idiots ???


Und the other Half Stays in the Global Cabal Mainipulation Machine in perpetuity...

Und I don;t think its gonna Fly With The German People.

Wed, 01/16/2013 - 11:02 | 3157492 BaBaBouy
BaBaBouy's picture

Shit, It's Gonna Take 7 YEARS For The Germans to Get 19% Of Their GOLD Back !


Does anyone actually beleive the BULLSHIT ???

Wed, 01/16/2013 - 11:07 | 3157518 trav777
trav777's picture

it takes a long time to dig this gold up from deep storage.  German gold is buried under a lot of stuff.

Wed, 01/16/2013 - 11:09 | 3157522 Manthong
Manthong's picture

“On the tape, Mr. Juncker says he has “had to lie” and, speaking about touchy economic topics, “When it becomes serious, you have to lie.”

Wed, 01/16/2013 - 11:17 | 3157545 strannick
strannick's picture

The key word in the press release is ''2020''. Thats the same time ZIRP will end, Bart Chilton will announce the findings of the CFTC Silver Investigation, QE will end, the economy will recover and Pigs will fly. They wont repatriate their gold because they cant. Which means buy gold.

Wed, 01/16/2013 - 11:18 | 3157553 Harlequin001
Harlequin001's picture

Why go to the bother of storing it when you can share it with 4 million other investors...

Wed, 01/16/2013 - 11:35 | 3157605 Manthong
Manthong's picture

Why go to the bother of storing it when you can share the notion of it  with 40 million other investors...

Wed, 01/16/2013 - 12:57 | 3157911 FEDbuster
FEDbuster's picture

Does this mean we can pull half our troops out of Germany now and close half our bases there?

Wed, 01/16/2013 - 15:34 | 3159069 Enslavethechild...
EnslavethechildrenforBen's picture

It means that the green paper confetti we are paying our troops will buy them absolutely nothing in their retirement. Poor fools.

Wed, 01/16/2013 - 11:09 | 3157530 AlaricBalth
AlaricBalth's picture


This is the response today from Germany's Repatriate Our Gold campaign.


Statement by Peter Boehringer
on behalf of
Repatriate Our Gold
and the German Precious Metals Association

Wednesday, January 16, 2013

We welcome the Bundesbank's announcement to repatriate significant portions of Germany's gold held abroad.

All reasons cited in the past for this storage had either been false or at least outdated since 1990 (with the end of the Cold War and the theoretical military threat to the Bundesbank's domestic gold vaults).

We are also satisfied that propaganda arguments (e.g. "chauvinistic/nationalistic demands for repatriation," "repatriation too expensive," "absurd debate questioning the integrity of US/UK central banks," etc.) have not been repeated at the Bundesbank's press conference today. Actually, by announcing some repatriation, the Bundesbank has implicitly acknowledged our point of view of gold as real money and integral part of a nation's monetary reserves.

But we do not approve of the speed and volume of the planned repatriation.

The Bundesbank has just announced that it will repatriate only 675 tonnes by 2020 by then bringing the total of German gold held in Germany to approximately 50 percent (1,700 tonnes) of total German gold reserves. The Banque de France will allegedly be given up as a Bundesbank storage facility (374 tonnes) and up to 300 of 1,535 tonnes will be repatriated from the New York Fed.

In our view, there is a lot of room for speeding up and increasing the volumes for this repatriation.

In addition, the Repatriate our Gold campaign insists on proper and independent physical and full audits of the Bundesbank's own vaults in Germany. This includes the publishing of bar number lists, which has been overdue for years. These gold bar number lists are important to prove or disprove multiple ownership of specific bars which could have come about through gold loans. This is one more reason to audit and repatriateall gold bars -- as an incomplete audit and incomplete lists would not fulfill this important purpose.

To quote from the statement of purpose of the Repatriate Our Gold campaign:

"Gold has been natural money for thousands of years. It has been used throughout history either as physical coinage or as the solid cornerstone for stable paper currencies. Up until 1913 most Western societies prospered and grew steadily and naturally under a monetary standard with at least partial gold backing. The gradual abandonment of the gold backing throughout the 20th century and the ultimate delinkage of all currencies from gold in 1971 is the fundamental cause of the ongoing inflation (the U.S. dollar has lost 98 percent of its purchasing power since 1913) as well as the main reason for the global financial crises since 2007. We believe it is essential to re-introduce a partial gold backing for the world's monetary system. And to back future national currencies, the gold needs to be physically present in the respective country. Gold needs to be re-monetized -- at least on a voluntary basis as a means of payment the people are free to choose at any time.

"We therefore campaign for:

"-- Independent, full, neutral, and physical audits of the gold hoards of the world's central banks.

"-- The repatriation of all central bank gold; that is, the physical transport into the respective ownership countries."

Wed, 01/16/2013 - 11:17 | 3157540 Harlequin001
Harlequin001's picture

Yes, and they should repatriate ours as well.

Oh, hang on, wait a minute, yes, er I think they've sold it...

Wed, 01/16/2013 - 11:45 | 3157648 JeffB
JeffB's picture

Thank you,  AlaricBalth.

That is an important bit of info I wouldn't have been privvy to otherwise. It is a very sound and reasonable statement and should be heeded.

If it isn't, I think it points all the more to the validity of their concerns.

Wed, 01/16/2013 - 11:52 | 3157662 Sofa King Confused
Sofa King Confused's picture

Gold confiscation in the U.S. to begin in 5.....4.......3....

Wed, 01/16/2013 - 18:53 | 3160039 MagicHandPuppet
MagicHandPuppet's picture

It's OK.  All of your golds are safe with us.

Wed, 01/16/2013 - 10:21 | 3157345 pemdas
pemdas's picture

Why take 8 years to move 300 tons of gold?  Am I wrong in thinking Fed Ex could do it overnight?

Wed, 01/16/2013 - 10:28 | 3157362 Stuck on Zero
Stuck on Zero's picture

Don't be silly.  It takes years to unrehypothecate the gold from a long line of claimants.


Wed, 01/16/2013 - 11:17 | 3157422 DaveyJones
DaveyJones's picture

"By 2020, the Bundesbank intends... to still exist

Wed, 01/16/2013 - 12:37 | 3157809 smlbizman
smlbizman's picture

as stated below...they have to dig it out of the ground first..

Wed, 01/16/2013 - 12:26 | 3157760 markovchainey
markovchainey's picture


Wed, 01/16/2013 - 12:24 | 3157754 glenlloyd
glenlloyd's picture

Something Juncker said, "when it's serious you have to lie," makes me believe 50% is actually 100%. I would guess that internally this is already understood at the BUBA

Wed, 01/16/2013 - 09:48 | 3157213 pan-the-ist
pan-the-ist's picture

Wars are expensive.  At some point even the US will l earn you cannot finance them on credit.

Wed, 01/16/2013 - 10:43 | 3157412 marathonman
marathonman's picture

Wrong.  The US has been doing it for over 100 years and the UK has been doing it for over 300 years.  It's really the only way to pay for wars.  Inflation does the heavy lifting.

Wed, 01/16/2013 - 10:54 | 3157445 DaveyJones
DaveyJones's picture

long history disagrees. So does common sense. If wars are nothing more than resource grabs and system control it becomes increasingly expensive to merely protect yourself as both your enemy list and military percentage of the budget expands exponentially and your return on investment moves in the opposite direction. Just as troublesome, your competitors can hurt you with all sorts of other weapons. See: us   

Wed, 01/16/2013 - 15:35 | 3159084 Enslavethechild...
EnslavethechildrenforBen's picture

Wars aren't financed on credit, their financed on theft and slavery.

Wed, 01/16/2013 - 16:56 | 3159505 newdoobie
newdoobie's picture

"A Short Victorious War" War for Profit

Wed, 01/16/2013 - 10:49 | 3157441 kliguy38
kliguy38's picture

EXACTLY......but they will get VERY little back this plays out there will be extraordiinary excuses and foot dragging as a meager amount of bullion finds its way into the light and then "suddenly" the entire process will magically be put on "hold"......pooof!

Wed, 01/16/2013 - 09:40 | 3157172 AlaricBalth
AlaricBalth's picture

"By 2020..."
Are they planning on rowing it across the Atlantic in a kayak, brick by brick?
What a joke!

Wed, 01/16/2013 - 09:45 | 3157191 GetZeeGold
GetZeeGold's picture



It will take 8 years of careful planning to know how to handle have to understand that they haven't had experience dealing with the actual stuff for quite some time.

Wed, 01/16/2013 - 09:47 | 3157200 mayhem_korner
mayhem_korner's picture



I was thinking it was going to be a DHL shipment of GLD certificates...


Wed, 01/16/2013 - 09:58 | 3157247 GetZeeGold
GetZeeGold's picture



Might be faster to sew it into lining of your clothes and walking it across the border.

Wed, 01/16/2013 - 10:33 | 3157376 imbrbing
imbrbing's picture

Or make a couple hundred thousand shirts out of it.

Wed, 01/16/2013 - 10:59 | 3157478 DaveyJones
DaveyJones's picture

or fill a shitload of teeth

Wed, 01/16/2013 - 11:03 | 3157495 Citxmech
Citxmech's picture

"Is it safe?"

Wed, 01/16/2013 - 11:16 | 3157546 CH1
CH1's picture

"Is it safe?"

No, in fact it's not! Gold bars have a highly concentrated mass, and are therefore more deadly than rocks, hammers, and even crowbars!

They must be regulated for your safety!

Wed, 01/16/2013 - 09:58 | 3157249 mayhem_korner
mayhem_korner's picture



Maybe Frodo can lug it for 'em...

Wed, 01/16/2013 - 10:30 | 3157369 Rossalgondamer
Rossalgondamer's picture

Tradition's a slow-mover

Wed, 01/16/2013 - 10:05 | 3157290 smlbizman
smlbizman's picture

it will take this long "cause u have to dig it out of the ground first...

Wed, 01/16/2013 - 11:04 | 3157504 Citxmech
Citxmech's picture

At least it only costs $5.00.

Wed, 01/16/2013 - 09:43 | 3157184 CPL
CPL's picture

By 2013, the Bundesbank intends to store All of Germany’s gold reserves in its own vaults in Germany. The Tungsten will remain in storage at its partner central banks in New York and London.


Fixed the statement.

Wed, 01/16/2013 - 11:06 | 3157512 kensdad
kensdad's picture

The Bundesbank will not get its gold.  They blew their chance.  They have now signaled to other central banks that it is time to repatriate, and I expect that others will not take 7 years to repatriate a small fraction.  The run on gold will mean that the Bundesbank goes to the back of the line.

Wed, 01/16/2013 - 11:18 | 3157552 boogerbently
boogerbently's picture

How long until all countries nationalize their native gold (mines)?

Wed, 01/16/2013 - 12:39 | 3157817 Chuck Walla
Chuck Walla's picture

Don't forget that pesky gold to tungsten ratio!



Wed, 01/16/2013 - 22:16 | 3160829 Buck Johnson
Buck Johnson's picture

But remember, it will take 7 FREAKING YEARS TO DELIVER!!!!!!!!  Why can't they get the tonnage at one time or in 7 months or 1 year why that long.  It's because the Fed has Hypothicated all the gold to such a  point that they don't know who owns what.  And what this should tell you is that they don't have the gold if they need that much time.

Wed, 01/16/2013 - 09:40 | 3157173 Stuart
Stuart's picture

you know it. 

Wed, 01/16/2013 - 10:14 | 3157177 Mercury
Mercury's picture

 Yes, soon to be amended to:


Given that each of the other listed countries operate a fiat monetary system controlled by an aggressive central bank with a strong, inflationary bias, the Bundesbank no longer forsees a need in these financial centres to exchange gold for any of these international currencies. Germany and the German people are particularly wary of formidable inflationary forces due to our country's hard earned experience in this area during the 20th century.


In conclusion, it's not you, it's us. We really hope we can still all be friends. :)
What time do you open on Monday?

Wed, 01/16/2013 - 09:44 | 3157190 I need more cowbell
I need more cowbell's picture

Yes, there is no Goldfinger, banksters. Pussy galore on the other hand...

Wed, 01/16/2013 - 10:06 | 3157277 IamtheREALmario
IamtheREALmario's picture

A. Given that WWIII is prophecized to complete destroy NY City, I guess it depends on when the war is scheduled.

B. It makes me wonder where the gold that was taken out from the vaults under the twin towers before they were pulled down on 9/11 went. The ghosts of the Gruber brothers planned and executed the perfect heist.... with a little help from Dick Cheney and Larry Silverstein?

Wed, 01/16/2013 - 10:46 | 3157432 Hobbleknee
Hobbleknee's picture

You know the US has bases in Germany, right?

Wed, 01/16/2013 - 11:04 | 3157501 FeralSerf
FeralSerf's picture

Not to worry.  It's safely in a vault in Tel Aviv.

Wed, 01/16/2013 - 10:57 | 3157461 eddiebe
eddiebe's picture

"To be changed to 100% by 2015. " Doubtful.

The statement by the bundesbank just shows that the mighty US. is still large and in charge. After all they are still an occupying force in Germany, and Germany still is forced to kiss ass. Maybe that will change eventually, who knows? If Germany turns into an enemy, their chances of getting the gold turn to nil. I would imagine it took some serious negotiating to get the small amount from the Fed that they were able to get.

 I know one thing: If I had my 'drathers' and given the option to hold all the gold that is owed to me in my own hand rather than someone elses, I would choose mine.

Wed, 01/16/2013 - 11:05 | 3157502 pupton
pupton's picture

Germany just "got physical". 

So does this leave less gold in NY for the banksters to leverage and short sell against, etc.?

Wed, 01/16/2013 - 11:08 | 3157520 Crassus
Crassus's picture

We built a really nice tunnel under Berlin during the cold war.

Wed, 01/16/2013 - 11:38 | 3157613 Silver Garbage Man
Silver Garbage Man's picture

Bob Pissani told me it was because " at half a million euros for storage, it's too expensive for such a small storage space."

Wed, 01/16/2013 - 11:41 | 3157626 MFLTucson
MFLTucson's picture

Or sooner!

Wed, 01/16/2013 - 12:41 | 3157822 tmosley
tmosley's picture

*Because the rest was stolen.

Wed, 01/16/2013 - 09:34 | 3157149 Troy Ounce
Troy Ounce's picture


Strange to write about James Bond. Sure this is not from The Onion?

Wed, 01/16/2013 - 09:44 | 3157192 CPL
CPL's picture

No, once the Onion was humour.  Turns out it really was prognostication of how bizarre things have become.

Wed, 01/16/2013 - 09:35 | 3157154 PontifexMaximus
PontifexMaximus's picture

why not immediately? are there still problems to have it phys available in NY?

Wed, 01/16/2013 - 10:02 | 3157268 holdbuysell
holdbuysell's picture

They could do it all by tomorrow and the by 2020 wording would still be by the letter correct, albeit misleading.

I've seen enough of these statements that are by the letter correct but misleading to think this is of the same feather.

So, who's next?

Wed, 01/16/2013 - 10:52 | 3157454 waterwitch
waterwitch's picture

How do we know that it hasn't been done already?  Maybe they tried and got tungsten, and this time they'll check?

Wed, 01/16/2013 - 10:07 | 3157308 IamtheREALmario
IamtheREALmario's picture

Oye, the paperwork ...

Wed, 01/16/2013 - 10:29 | 3157367 Shevva
Shevva's picture

It takes time to arrange minis strong enough to take the gold.

Wed, 01/16/2013 - 09:35 | 3157155 perchprism
perchprism's picture


Gold is wherever you find it.

Wed, 01/16/2013 - 09:35 | 3157157 RubberMartyr
RubberMartyr's picture

That's what I was thinking.

Wed, 01/16/2013 - 09:36 | 3157159 mayhem_korner
mayhem_korner's picture



And this from the spin doctors as evidence there is 'nothing to see here':

Dominic Schnider, global head of commodity research at UBS Wealth Management told CNBC, "Holding gold in key financial centers (New Tork, London or Paris) makes sense and can give access to foreign currencies like the U.S. dollar. On the other hand, we have seen how easy money printing is. Thus, we don't need gold anymore as collateral."

Only in the parable of the rich man and Lazarus has a greater chasm existed than the one between reality and what the soothsayers at CNBC put out.

Wed, 01/16/2013 - 11:03 | 3157500 DaveyJones
DaveyJones's picture

"we have seen how easy money printing is. Thus, we don't need gold"

the most ironic proof of value I've ever heard

Wed, 01/16/2013 - 09:38 | 3157163 tuttisaluti
tuttisaluti's picture

What country is next and will try to fronrunning germany? Could be that by 2020 no more Gold is left for them.

Wed, 01/16/2013 - 09:42 | 3157180 youngman
youngman's picture

I think there are quite a few asking for the order if you know what I mean............

Wed, 01/16/2013 - 15:00 | 3158885 jeff montanye
jeff montanye's picture

netherlands: 500 tons in foreign hands.  switzerland, over 1000 tons of reserves, some (how much?) in foreign hands.  

france and italy have about 2400+ tons each, again how much in foreign hands?  supposedly 95% of the n.y. fed's gold is foreign owned.

the post above notes it took ten years for the buba to realize the euro made obsolete the french connection, but apparently they realized at least that some gold should be repatriated then:

Wed, 01/16/2013 - 09:45 | 3157199 farragut
farragut's picture

It's quite possible (even probable?), the 2020 date is mentioned only to assuage any fears in the general public about the demand for gold. Meanwhile, Germany has told the Fed et al, "we want all our gold by the end of 2013--or sooner."

Wed, 01/16/2013 - 10:04 | 3157267 Pseudo Anonym
Pseudo Anonym's picture

yeah, i agree:

Germany has told the Fed et al, "we want all our gold by the end of 2013--or sooner."

and what did the fed say?  fuck off.  now the krauts are trying to save face with meaningless statements, like by 2020.  bullshit.  if you dont sit on your stash of phyzz gold now, you dont have it germany.  and will not have it by any time soon either.  so stop that ass kissing and boot licking like we 'have a trusting and mature relationship with the fed" and all that.  that wont help you get your gold.  deal with it.

Wed, 01/16/2013 - 09:38 | 3157164 10PastMidnight
10PastMidnight's picture

I guess letting everyone else in on the fun n run was not in their plan.

Wed, 01/16/2013 - 09:38 | 3157165 coulous
coulous's picture

tungstene stock shortage

Wed, 01/16/2013 - 09:38 | 3157167 pvzh
pvzh's picture

"By 2020" is basically never.

Wed, 01/16/2013 - 09:49 | 3157219 fonzannoon
fonzannoon's picture

2020 my anus. They put that in there as a favor. Behind the curtains they said "we want all our shit, asap mfkers".

So does anyone else hold gold anywhere else that will now start asking for it?

Wed, 01/16/2013 - 09:55 | 3157239 jmcadg
jmcadg's picture

Absolutely fonz. 2020 is a headfake to stop a global panic.

Good luck with that.

Reminds me of this

'follow the money'

Wed, 01/16/2013 - 11:02 | 3157498 MsCreant
MsCreant's picture

Everyone with a Gold ETF? Heh, heh, heh.

Wed, 01/16/2013 - 10:25 | 3157353 Shell Game
Shell Game's picture

2020 is the new 2013..

Wed, 01/16/2013 - 10:38 | 3157386 CPL
CPL's picture

Notice how the five year view has turned into seven.


Inflation isn't just fixed on prices, it's fixed on operational timelines and availability now.  It was bad enough that TPTB was wasting money, now they are printing 'time'.


That's how surreal the situation has become.  Printing 'time'.  One thing humans are lousy at managing.

Wed, 01/16/2013 - 11:06 | 3157509 MsCreant
MsCreant's picture

All of these debates (debt ceiling, fiscal cliff) are like that, distractions from the truth (Bankruptcy). In both cases (fiat time, fiat money) eventually everyone loses faith in it and there is a hard landing.

Wed, 01/16/2013 - 11:09 | 3157525 DaveyJones
DaveyJones's picture

I'd rather they do time than print it

Wed, 01/16/2013 - 09:40 | 3157178 youngman
youngman's picture

So they saved 50% of their gold.....lost the other sad...bad decisions are well....bad decisions....

Wed, 01/16/2013 - 09:41 | 3157183 frenchie
frenchie's picture


dommage pour les frenchies 

Wed, 01/16/2013 - 09:44 | 3157185 Kaiser Sousa
Kaiser Sousa's picture

good morning my fellow ZH real money comrades.....



Wed, 01/16/2013 - 09:43 | 3157187 Peter Pan
Peter Pan's picture

None of this explains why a more stable and prudent economy would want to store gold in the USA. If anything the USA shoukd be storing its gold in Germany.

In any case the timetable and percentage change in location is measly and will be dirched before long.

Wed, 01/16/2013 - 09:49 | 3157215 mayhem_korner
mayhem_korner's picture



This is not about economics.  It's about sovereignty.

Wed, 01/16/2013 - 10:17 | 3157265 sessinpo
sessinpo's picture

Peter Pan: "None of this explains why a more stable and prudent economy would want to store gold in the USA."


Mayhem_korner:   "This is not about economics.  It's about sovereignty."


My comment: A perfect example of non critical thinking. Peter Pan is asking why a nation would store its gold on foriegn land. Mayhem_korner makes a nonsensical response (quoted above). I respond:  Yes, it's about sovereignty, which is why one should store its gold on their own land.


Then Peter Pan makes a ridiculous statement that the USA should store its gold in Germany. Again, nonsensical. Why do I, why would you want to place your assets in someone else's hands where you have to physically fight to get it back if there is a dispute?


I'll tell you what, how about both Mayhem_korner and Peter Pan give me all their assets for safe keeping and you'll get them back (wink, wink), or maybe I'll just replace your assets with a 308 winchester shell to your brain, because obviously you are both brain dead with those statements.


Have we lost all logic here even amongst ZH?

Wed, 01/16/2013 - 10:32 | 3157336 mayhem_korner
mayhem_korner's picture



Why do you agree with me and criticize me in the same paragraph, troll?  Did you short yourself one of your 4 xanax pills this morn...?

You seem to ignore the rather important fact that the current state has Germany's gold on deposit in the U.S.  So "not storing it" in a foreign country is a option long since gone and not really insightful relative to the current situation.  Obviously you don't have a bank account, a job, or anything else that places certain of your claims of your assets/returns of labor in the custody of another entity.  If you did, you wouldn't make such statements... (Either that or you've had a close call yourself with yer Winchester, Jethro...)

Wed, 01/16/2013 - 19:44 | 3160221 sessinpo
sessinpo's picture


Wed, 01/16/2013 - 19:42 | 3160222 sessinpo
sessinpo's picture

mayhem-korner  "Why do you agree with me and criticize me in the same paragraph, troll?"


Because you are inconsistent in your thought. And the fact that you lower the discussion into name calling make YOU the troll, not me. But I an not a whimpy liberal and I respond in unkind and call you an asswipe troll. Now let's see you lower the discussion once more.]


Let me clearify my post as you don't have much critical thinking skills.

Peter Pan stated: "None of this explains why a more stable and prudent economy would want to store gold in the USA. If anything the USA shoukd be storing its gold in Germany" 

If you, Mayhem_korner, reads that correctly, Peter Pan is asking for an explanation as to why a nation would want to store its gold in a foriegn land.

YOU responded: "his is not about economics.  It's about sovereignty."

Your response is illogical. If I want to protect my soverignty, then I would NOT want to store my gold abroad.


Now, I patiently await YOU, the asswipe troll, to respond logically to my post or go down the path of name calling. By the way, I'm a bigger ASSHOLE then you so bring it.


And as an addition, Thread, , It Will Take The Fed Seven Years to Deliver 300 Tons of German Gold , supports my post.


My position is why would you trust a foriegn nation to hold your gold. We have so many people on here, rightly, that don't trust central banks. Do YOU NOT see the hypocracy? I say hold your gold in your own land and in hands your trust the most - yourself.

Thu, 01/17/2013 - 09:26 | 3161735 mayhem_korner
mayhem_korner's picture



You, my friend, are a moron.  I read Peter Pan's comment as "Germany is now the stronger economy, the shoe should rightly be on the other foot."  His comment was an observation of relative economic strength and that, if anything, it should be Germany that is the trustworthy steward of bullion.  But that is not the case.

My response is that irrespective of economic might, Germany does not trust the situation and simply wants to hold its bullion in its own hands (for which I cannot blame them as I do the same).  Whether Germany's bullion is held in the U.S. or its own land does not affect the value of what it shows on its balance sheet.  So there must be another reason for it to want to hold it in its own banks.  That reason is as I stated.

You're view that countries should not hold gold in foreign CBs is a correct, but completely irrelevant one.  Given that bullion is held in foreign lands, the issue - and the news here - is that a major player wants to rectify that. 

You are about three moves behind the actual conversation.  But thanks for playing.  Remember, this is fight club and if you don't have the stones to take some heat, then continue polishing your stinger in your sister's closet.

Thu, 01/17/2013 - 09:36 | 3161766 mayhem_korner
mayhem_korner's picture



One more thing.  Here's what you say:

If I want to protect my soverignty, then I would NOT want to store my gold abroad.

Let me make this kindergarten-easy for you (which is probably the limit with you, anyway)...

If I want to protect my sovereignty - and my gold is already stored abroad - then I would _________________.

If you come up with an answer different than "repatriate my gold", let me know.  Once you realize that that is the one and only answer consistent with your prior thought, it should dawn on you that you are criticizing me while at the same time agreeing 100% that this is about sovereignty.  You have more than a few disconnected synapses.

Wed, 01/16/2013 - 11:15 | 3157542 FeralSerf
FeralSerf's picture

What sovereignty?  The U.S. military bases in Germany prevent that.

Wed, 01/16/2013 - 19:48 | 3160274 sessinpo
sessinpo's picture

Yes, but you are unlikely to have military action to get to vaults holding gold without great problems and notice. On the other hand, as TD has just posted, the Fed is claiming it would take 7 years to give Germany back 300 tons of gold. Would Germany have that problem if it stored that gold on its own land?


And so I got a lot of down arrows and NO LOGICAL RESPONSE. Come on people. Let's see some debate here. I'm waiting.


Anyway, FeralSerf, your point is well taken but in the context of the thread I do not think it applies. The US is not going to attack Germany any time soon.

Thu, 01/17/2013 - 09:27 | 3161741 mayhem_korner
mayhem_korner's picture



Illogical premises do not typically elicit logical responses.  There are several degrees of separation between what you believe to be a logical thought and reality.

Wed, 01/16/2013 - 11:45 | 3157642 One of these is...
One of these is not like the others..'s picture

I think it's about OWNERSHIP...

Wed, 01/16/2013 - 14:16 | 3158591 Peter Pan
Peter Pan's picture

If it's about soverignty then maybe Germany needs to get rid of foreign troops on its soil as well.

Wed, 01/16/2013 - 09:43 | 3157188 Zigs
Zigs's picture

Just listened to CNBC cabal going out of their way to joke around about the announcement. 

Wed, 01/16/2013 - 09:49 | 3157223 Kaiser Sousa
Kaiser Sousa's picture

bunch of fucking propagandist they are....

not a mention of the story all day yesterday...


Wed, 01/16/2013 - 10:01 | 3157270 GetZeeGold
GetZeeGold's picture



The boys at CNBC better start paddling faster....cause this is quickly turning into one hell of a media snafu.

Wed, 01/16/2013 - 10:15 | 3157327 Kaiser Sousa
Kaiser Sousa's picture

nah, they aint worried...

they'll just bring in the serial Gold fondler Warren (ima buffoon) ButFuckBuffet to deflect...

Wed, 01/16/2013 - 09:45 | 3157194 mayhem_korner
mayhem_korner's picture



Can someone drum up a chart of boat insurance premiums?  I'm sort of longing to see a parabola...

Wed, 01/16/2013 - 15:38 | 3157197 Pseudo Anonym
Pseudo Anonym's picture


By 2020, the Bundesbank intends to store half of Germany’s gold reserves in its own vaults in Germany

i bet a dime that the fed told buba to fuck off and now buba is trying to save face.  no deliveries will happen.  by 2020 is like by eternity

Wed, 01/16/2013 - 09:49 | 3157203 FunkyOldGeezer
FunkyOldGeezer's picture

Why telegraph intentions 8 years ahead of conclusion????

Proof positive that (a) it doesn't actually exist in physical form that is available for delivery and (b) they've been shafted. IF there was no problem getting hold of physical, they wouldn't have to wait that long. I can't see the German people buying this.

Bullish for Gold until at least 2020?

Wed, 01/16/2013 - 09:50 | 3157224 mayhem_korner
mayhem_korner's picture



Bullish for physical gold.  Whether it moves or not, this is a steroid boost for physical/paper decoupling.

Wed, 01/16/2013 - 10:57 | 3157474 waterwitch
waterwitch's picture

I think Venezuela got their gold back, didn't they? Shmaht.

Wed, 01/16/2013 - 15:48 | 3159155 Pseudo Anonym
Pseudo Anonym's picture

deep storage, bitches

(a) it doesn't actually exist in physical form that is available for delivery

Wed, 01/16/2013 - 09:46 | 3157206 Super Broccoli
Super Broccoli's picture

i wouldn't leave 37% of my gold in Uncle Sam's vault !

Wed, 01/16/2013 - 09:58 | 3157254 HoofHearted
HoofHearted's picture

And that's why we've all traded out our FRNs for the phyzz. No way Uncle Scam is eroding my buying power via inflation or confiscation.

Wed, 01/16/2013 - 09:55 | 3157207 SpanishGoop
SpanishGoop's picture



                           31 December 2012 31 December 2020

Frankfurt am Main 31 %                     14 %

New York              -4 %                       0 %

London                -3 %                       0 %

Paris                  -10 %                       0 %

Wed, 01/16/2013 - 09:46 | 3157209 kondratus
kondratus's picture

ha ha ha

Till 2020 nobody will return German's gold))))

Till 2020 it will be international monetary instrument.

But this German's statement may urge other's, like Netherlands, etc to start repatriation of their gold

Wed, 01/16/2013 - 09:49 | 3157217 pndr4495
pndr4495's picture

First and intuitve thought about this is that THE RED SHIELD wants its gold in home port. My gut tells me it marks a macro shift in their strategy.

Wed, 01/16/2013 - 09:49 | 3157218 Silver Garbage Man
Silver Garbage Man's picture

How do you say "Turning Point" in German?

Wed, 01/16/2013 - 09:58 | 3157250 inevitablecollapse
inevitablecollapse's picture


Wed, 01/16/2013 - 09:59 | 3157255 zenmeister
zenmeister's picture


Wed, 01/16/2013 - 10:03 | 3157278 Shitters_Full
Shitters_Full's picture


Wed, 01/16/2013 - 10:34 | 3157381 MillionDollarBoner_
MillionDollarBoner_'s picture


Wed, 01/16/2013 - 10:12 | 3157321 busted by the b...
busted by the bailout's picture

Yes, but turning point in what?

The era of fiat currency?

The dollar as the world's reserve currency?

Dissolution of the EU?

All of the above?

Whatever it is, Germany is looking increasingly like the strong horse in the race.

Wed, 01/16/2013 - 10:25 | 3157352 Silver Garbage Man
Silver Garbage Man's picture

Turning point in the relic market

Wed, 01/16/2013 - 11:07 | 3157516 MsCreant
MsCreant's picture

Or a walking horse?

Wed, 01/16/2013 - 11:30 | 3157588 negative rates
negative rates's picture

Turning point in the leverage of numerology, with, No Time, left to spare.

Wed, 01/16/2013 - 10:16 | 3157329 krispkritter
krispkritter's picture

Heil Hitler?

Wed, 01/16/2013 - 10:28 | 3157363 MillionDollarBoner_
MillionDollarBoner_'s picture


Wed, 01/16/2013 - 10:33 | 3157379 debtor of last ...
debtor of last resort's picture

Die Wende .

Wed, 01/16/2013 - 09:49 | 3157220 paint it red ca...
paint it red call it hell's picture

"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." - and so it starts out..

I wonder if German citizens can feel it? Being jaw boned over the brow to keep trust in the elite of NY, Chicago, and DC? They will be first politically impoverished then financially responsible for the arrogance of those despots in Brussels.

Wed, 01/16/2013 - 09:57 | 3157221 THE DORK OF CORK
THE DORK OF CORK's picture

"only country left in Europe that is not an all out parasite.................................."


Thats funny - what makes you think Germany is virtous ?

Its the biggest destroyer of capital in Europe by virtue of its car Industry.


Also trouble in its home market ? (depends what they are buying I guess but the numbers look bad)


major decline in German car reg this December………..could be a stat blip but
Dec car reg : – 16.4 %

this is 40,000~ less cars then last December………….half of the total yearly Irish consumption.
Greece total for the year was 58 ,482 (-40.1%) the largest % decline in Europe from a already very small 2011 base.
(In 2007 Greece car reg was 279 ,374.)

In contrast the albeit tiny Icelandic car market is up 56% in 2012.
Why is this ?
Icelandic savings is more or less internal / capital controls
It is not bailing out global banking /wage arbitrage operations so more capital is available in the home market to purchase external goods although car purchase is a waste of resources in my book.




Wed, 01/16/2013 - 09:51 | 3157225 rpboxster
rpboxster's picture

By 2020 includes "by 2013".  The long date may be just for calming effect.

Wed, 01/16/2013 - 09:51 | 3157226 ltsgt1
ltsgt1's picture

I would love to know the logic behind German repatriating all of its gold from France but none from England.

Wed, 01/16/2013 - 09:54 | 3157235 IamtheREALmario
IamtheREALmario's picture

Maybe family ties ...

Hapsburgs > German

Rothschilds > German

France is irrelevant

Wed, 01/16/2013 - 10:06 | 3157296 Mi Naem
Mi Naem's picture

Like Germany, France is on the Euro, but Britain is on the Pound.  They collateralize their extensive trade with England. 

Besides, I think this is phased announcement number 1, designed to begin the homeward movement of their assets in a such a way as to avoid too much public embarrassment and panic.  They want to get as much of their gold home as they can before the stuff hits the fan, and they can't do that if they are throwing stuff up into the fan. 

And, yeah, it looks like France is irrelevant. 

Wed, 01/16/2013 - 10:19 | 3157338 Toronto Kid
Toronto Kid's picture

The Brits may have let Germany inspect their vaults. 'See, Otto, it is all here. Come, you can even put your own lock on the door ...'. That way the Germans figure this pile of gold is safe but it still remains in British hands.

The Americans are next - they won't even let themselves inspect the vaults.

The French are first as they look the likeliest to, spend, uh, lose the gold. Any country that already imposes an 85% tax rate on annoying French actors strikes me to be a little too desperate for cash. Maybe Germany feels the same way?

Wed, 01/16/2013 - 10:44 | 3157417 MillionDollarBoner_
MillionDollarBoner_'s picture

Why 100% of their French gold?


France has no choice - hand over the gold or its tanks up the Champs Elysee before you can say "Kamerad"

The UK and USA...well, we know how that one usually works out ;o)

Wed, 01/16/2013 - 10:46 | 3157431 No Euros please...
No Euros please we're British's picture

The German's sent their girl Liz Saxe-Coburg Gotha to inspect the gold. It was on the telly the other week.

Wed, 01/16/2013 - 10:48 | 3157437 e_goldstein
e_goldstein's picture

Because you can't get back what Gordon Brown already sold.

Wed, 01/16/2013 - 09:52 | 3157228 Inthemix96
Inthemix96's picture

Right, so in seven years time, Germany will officialy hold 50% of its OWN gold inside German vaults?

Fuck off and talk sense my German friends.  Why?  Why not take it all back now?  Why wait 7 years?

My spidey sense is tingling here folks, 'cos we aint making it to 2020, I think we all understand that.  There is no fucking way I am logging on here day in day out for another 7 years to see this shit-show still going, bring the fucker down already for fucks sake.

Wed, 01/16/2013 - 09:53 | 3157230 IamtheREALmario
IamtheREALmario's picture

"This gold was stored in US vaults for obvious reasons"

This much as least I get. Up until 1971 there was no point shipping physical gold around the world in exchange for dollars to settle accounts. Less so, now that dollars are digital. I suppose gold could be just as digital as dollars, eh?

Since 1971 it makes no sense for a country to store its gold in another country unless it is akin to MAD or two men holding the each others balls in their hand. Foreign countries cannot attack the dollar standard in fear of losing their gold.

France is obviously irrelevant.

Wed, 01/16/2013 - 10:48 | 3157438 Kim Jong-Il
Kim Jong-Il's picture

Reason for storage outside Germany = to keep out of Soviet hands in the event of war

Wed, 01/16/2013 - 11:13 | 3157537 forwardho
forwardho's picture


Modern man has no sense or knowledge of history.

Do all forget the Fulda gap plan?

It was a real fear.

Wed, 01/16/2013 - 10:48 | 3157439 Kim Jong-Il
Kim Jong-Il's picture

Reason for storage outside Germany = to keep out of Soviet hands in the event of war

Wed, 01/16/2013 - 10:03 | 3157233 Antifederalist
Antifederalist's picture

This establishes the precedent. They are asking for some gold back. It is a HUGE deal. The flow is now in the wrong direction for the fiat masters. Later they can ask for more.

Fiat masters should be very afraid.

Tradition my ass BEN. This shit is money, you are about to get schooled you fraudulent motherfucker.

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