It Will Take The Fed Seven Years To Deliver 300 Tons Of German Gold

Tyler Durden's picture

With the market yet another algo-controlled snoozer, programmed to close the S&P just green (as otherwise confidence in central planning may fail), the key things we learned today are as follows:

Obama proposed 23 "gun controling" executive actions, which do little to actually control guns - that part falls to Congress, where the proposal will be promptly killed - but which will add some $4.5 billion to US spending, and which will "push for further action on his health care law, including insisting on the kind of mental health coverage states must provide under their Medicaid programs."

The breakdown of the spending is as follows, per Weekly Standard:

  • $4 billion for the president’s proposal “to help keep 15,000 cops on the streets in cities and towns across the country.” (That is roughly $266,000 per police officer.)
  • $20 million to “give states stronger incentives to make [relevant] data available [for background checks] … “$50 million for this purpose in FY2014”
  • “$14 million to help train 14,000 more police officers and other public and private personnel to respond to active shooter situations.”
  • “$10 million for the Centers for Disease Control to conduct further research, including investigating the relationship between video games, media images, and violence.”
  • $20 million to expand the National Violent Death Reporting System.
  • $150 million to “put up to 1,000 new school resource officers and school counselors on the job.”

What can one say: politics, fully, theatrically and embarrassingly "endorsed" by the children sitting behind the president.

* * *

But the biggest news of the day comes from the official Buba announcement that, in its official capacity as a prudent central bank, it - as first of many - is looking to repatriate some 300 tons of gold from the New York Fed. That, however, is not today's news - that was Monday's news.

What is news is that courtesy of the supplied calendar of events in the Buba statement, it will take the Fed some seven years to procure Germany's 300 tons of gold. This is the same Fed that, in its own words, holds some "216 million troy ounces of gold" or some 6720 tons, in its vault 80 feet below ground level.

Putting the above in perspective, the amount of gold that Germany will have to wait 7 years for is shown in red. The amount of gold the Fed supposedly holds, is shown in yellow with a shade of tungsten. Why it will take the Fed 7 years to part with an amount of gold that is less than 5% of its total holdings is anyone's guess...

unless of course, the bulk of the gold in the column on the right has been rehypothecated numerous times to serve as collateral for countless counterparties, and it is no longer clear just who own what to anyone.

* * *

We can only wonder how many centuries it will take the New York Fed to deliver all the gold held by third parties in its vault, once the demand notices start rushing in...

For all those curious how the Fed itself describes the gold vault and its contents, can read more in the pamphet below:


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lolmao500's picture

If I were Germany's PM I would do something like that in a second...and I would tell all my other friends PMs to do the same... so would most people on ZH I presume... they would make sure to call Ben's BS in front of everybody.

wee-weed up's picture

Ah, but they're all just as guilty as Benny-Boy!

And he knows it!

DavidPierre's picture

Pretenders have a way of being found out eventually.

When the U.S. revoked gold convertibility in 1971, the bankers probably toasted each other that there could never be a bank run again.

The most recent news releases at this point say that the U.S. holds 31% of the Bundesbank's 3396 tons of gold. This is 1052 tons or 30,705,492 troy ounces which is $51.65 billion at the current market price of $1682. I also read an article in the telegraph that said the U.S. holds 66% of the Bundesbank's gold, but they may be only counting the gold held outside of Germany.

It appears Germany started its gold purchases in 1951 with a modest 1/2 tonne purchase. By 1956 they had acquired 1328 tonnes. So it would appear that some of the gold Germany plans on repatriating has been held in the U.S. since the mid 1950's.

Since possession is nine tenths of the law the U.S. could decide to return none at all. The U.S. has the military to be a thief, but a trade war with Germany would cripple us. Besides Mercedes and BMW's, Germany leads the world in all sorts of technology. 

Definitely a lot of action on the high seas coming.

A torpedo just hit the New York Fed and it was already leaking heavily.

lolmao500's picture

Since possession is nine tenths of the law the U.S. could decide to return none at all.

Right. Germany is part of the evil empire, it's just that the scum is fighting for who gets more power.

honestann's picture

Just because a bunch of predator-thieves once said (and repeated endlessly), that "possession is 9/10 of the law", doesn't make it the law, and doesn't make it legit.  Don't let a bunch of predatory liars and thieves tell you what is law, what is ethics, or what is right and wrong.

secret_sam's picture

To be just the bit pedantic about it, "possession is 9/10ths of the law" really refers to the fact that 90% of the law at the time was devoted to PROPERTY LAW.  Theft and ownership, that sort of thing.

Things like gun purchase and murder and rape just didn't take up many lines of code.  That's because the only folks who needed to argue their cases in the court were differing BUSINESS INTERESTS.

Plu de change and all.

"Property is theft.  Therefore theft is property.  Therefore this ship is mine."  --Zaphod Beeblebrox

secret_sam's picture

You're pretty pathetic, bro.  Step up the game a bit, would you?

Yes We Can. But Lets Not.'s picture

I'd suggest the US deliver the full 300 tons.  Tomorrow.  Fully insured, of course.

On a fleet of 8 of those new brand new Boeing Dreamliners.

jmcadg's picture

There will be a full page ad in the Wall St Journal tomorrow

Jobs Available:

Requirements: Being able to hold a brush.

Perks: Full employment for seven years

Apply to: The Bernanke

jldpc's picture

A FedEx 757-300 can haul 65 tons of anything 3200 miles with a full load of fuel and a standard 2-man crew. And it is insurable, hee hee. That is a mere 5 trips to Frankfurt from NY. Who is bullshitting whom?

secret_sam's picture

We're sorry, those 757-300's didn't have flood insurance.

yogibear's picture

The German Central bank doesn't trust the US Fed. Germany is shooting for a gold backed Mark.

Yen Cross's picture

 German U-Boats are good at moving XAU. That load was moved to Atlantis weeks ago!

jonjon831983's picture

Well they could borrow some nuclear armed Dolphins they sold Israel to transport the gold.  Don't think many would want to f around with that convoy.

"Israel Deploys Nuclear Weapons on German-Built Submarines"

Yen Cross's picture

  I'm sure "Area 51" has some teleporters available during times  of "tempest"?   Just having a little fun...<

RhoneGSM's picture

But this guy says we are all batshit crazy here at ZH.  So, BUBA will read this and do an Emily Littella: "Never Mind"..

RhoneGSM's picture

But this guy says we are all batshit crazy here at ZH.  So, BUBA will read this and do an Emily Littella: "Never Mind"..

are we there yet's picture

Time for Heir Merkel to put on a Natzi uniform and a mustach and start making loud noises about her gold.  Or hire the cast from 'Iron Sky' a comedy where Natzi's from the dark side of the moon raviged the earth.

unrulian's picture

...for that mustach she merely has to stop shaving for a week

RhoneGSM's picture

But this guy says we are all batshit crazy here at ZH.  So, BUBA will read this and do an Emily Littella: "Never Mind"..

DavidPierre's picture


Germany and its gold

With all the chatter about the German gold and demands for repatriation, I wonder why more of the media commentary is not asking the obvious questions. I mean right off the bat the question is, why does a rich country like Germany need to hold its gold somewhere else? Is there a problem with its own custodial capabilities? I think not and this begs the question why this situation has developed at all.

Theoretically if I have $8000 in the bank, and you ask me to hold $1000 in safe keeping for you, then it should be an easy transaction for me to give you back your money anytime you wish. Where is the problem? Well, if I have spent my $8000 and also spent your money, then we have a problem indeed. This concept that Germany has asked for its gold back in instalments over several years is a clue that they know the gold is long gone.

Or, more to the point, the gold is not gone. Every bar is neatly stacked in various vaults and depositories. However, it has been sold and resold, and swapped and pledged, so many times to so many different parties, that the legitimate ownership of that gold is now in question. I believe the players involved have now come to the point where a priority is being established on who gets final claim of ownership as the game of musical chairs is coming to an end.

What if MF Global was in fact a trial balloon? What if it was collapsed and brought to light specifically to measure the intensity of the outrage from the public over such a scam? And the end result of course was a few sound bites of political showmanship and not much else. So now considering that the GLD ETF is one of the largest documented inventories of physical bullion, does anyone think it will go any other way than another MF Global scenario when the big players step up to the front of the line to get custody of the real bullion? Do people believe that countries will be denied access to their bullion held in US vaults but the inventory controlled by the GLD on behalf of small time investors will be secure? When the hedge funds and pension funds and any other players foolish enough to buy the paper variety are left with nothing to show for it, the purpose of the exercise will become clear.

I am becoming convinced that the gold remains stacked in neat piles in Fort Knox and elsewhere, exactly as it has always been assumed for decades prior to all of this circus. However what has changed is that enormous volumes of gold have been resold many times over to various owners. And if there was ever a real audit completed that documented the physical bar serial numbers, many owners would suddenly have proof that these same gold bars are being pledged multiple times. That is when the real frenzy would develop. The game can continue as long as the inventory of gold remains opaque and all of the paper claims against it remain confidential.

So to see Germany reinforcing its claim to the bullion, and doing so in a way that provides an outlet without bringing the entire scam down immediately, is just another sign that GATA has been right all along. The Chinese have this figured out too, and they are happy to unload soon to be worthless paper money for gold, and TAKE DELIVERY of that gold, thank you very much. The shills running the commodity exchanges know that claims of ownership for more gold change hands every day than than the world produces in a year, but as long as only a small amount of real bullion is actually removed from the system, the scam can go on.

Germany appears to be concerned the demand is getting close to the point that it will swamp the paper con game. This nonsense cannot go on forever. And Germany has put the system on notice that when the final accounting is done, it expects to be one of the 'owners' of that gold that actually gets to see its gold bullion delivered to them. The same way that the smaller investors were played as suckers when the rules were changed to let MF Global steal all the money, so too will the holders of paper gold be left with nothing and no recourse to do a damn thing about it.

This is a warning shot in my opinion. The gold window may be closing as a means for individuals to opt out of the criminal investment charade. When people figure out that all of the paper gold is not backed by any claim of ownership, every last ounce of gold bullion in the world will be snatched up so quickly that it will become impossible to buy any at any price shortly after. The myth of abundant stockpiles of gold or silver will be discredited so fast that people will not be able to react on the other side of this event horizon.

This is not the end of the manipulation, but perhaps we are nearing the beginning of the end.

Seasmoke's picture

MF Global was in fact a trial balloon......



DavidPierre's picture

So you thought that "Euro bashing" would go unanswered?



For the last 2 years or more, "Euro bashing" was all the rave. Every time the Euro would pop its head up above water, a rating agency would conveniently (and in timely fashion) downgrade one of their sovereign states.  There are basket cases throughout Europe but you must ask yourself why the downgrades always seemed so "timely"?  I as many others have, pointed to this bashing as a way to turn the spotlight away from the U.S.. It worked and quite well I might add with the exception of the summer 2011 when the U.S. squabbled over the unlimited debt limit.


The Euro is again bumping the 1.33 level at nearly one year highs versus the Dollar and the spot light is pointed squarely in the direction of the U.S.. We still have the so called fiscal cliff, sequestration and debt ceiling issues to address. They haven't gone away, won't go away and fundamentally cannot go away because in essence they are part of a bankruptcy proceeding when looked at with "reality glasses" on. Of course, Europe knows full well the "timing" of past downgrades and op ed pieces that knocked them down and then kicked them for good measure. Enter the recent news of Germany repatriating their Gold!

 BUBA (The Bundesbank) has not confirmed or elaborated the story released Monday that BUBA would begin repatriating Gold.

And yes, if true this has ALL the hallmarks of distrust amongst central banks...with very good reason!

Assuming that the story is true and Germany does proceed with recalling their Gold, this action must be seen for what it is. The obvious is the "distrust" issue but on a more subtle note...the timing? As mentioned above, the U.S. has an action packed few months ahead with its fiscal and taxation issues.

With the stage set as it is, can the timing of Gold repatriation be seen as anything other than an "answer" to the previous Euro bashing? Is Germany adding pressure to the "cooker" by taking these actions before rather than after our foolish fiscal debates? Could they have waited until after the smoke cleared? And curiously, why are they only requesting smaller amounts to be shipped annually? Is the total stash just too big, bulky and heavy to transport in one year or are they just being "polite" and not asking for it all at once because they know it isn't there?

Whatever the answers, it is clear that central banks don't have 100% trust in other central banks which can only lead to further distrust in central banks by those who use their currencies. Germany has struck a jab back at the U.S. and done it at a very opportune time. Though I'm not so sure that Germany really wants a higher Euro since that will put pressure on their manufacturing sector. Maybe, just maybe they would like to see a higher Gold price? Maybe this is being done and the timing now because "deliveries" are about to dry up and they know it. It could be that large orders are being slowed or whittled down and that is seen as a sign of lack of supply. I'm not sure what to think but action, the timing of the action and country of origin of the action is surprising, curious and should really raise the eyebrows of even the most heavily sleeping sheeple among us!

Hold that thought.



This morning BUBA announced that they will repatriate a WHOPPING 300 tons from NY...over 8 years??? 32 or so tons per year? Uh, why so little and why such a long time frame?

Chavez pulled 211 tons from London about a year ago...and did it all within 4 or 5 months. I guess they didn't want to roil the markets...or maybe this gives enough time for the metal to actually be mined and shipped? This really raises far more questions than could have been asked before their announcement.  Look at it from the "mainstream" standpoint.  I cannot reckon the logic. Of course, the mainstream never asks logical questions because the answers never add up. There is far more behind this than meets the eye. The simplest explanation is that Germany does want their Gold back, they know that it has been leased out and already sold which means it is not available for delivery They do not want to go down in history as the ones who blew up the Ponzi scheme so they are allowing "time", time to dig it up and fabricate it over 8 years. But this still doesn't account for the rest of the Gold supposedly held by the Fed... it doesn't add up and making heads or tails of it is not working.



secret_sam's picture

The total nihilists with the gold and the button are unmoved by your commentary.  Perhaps you could bring up good and evil or something.

But what if the markets really are *only* the margins?  Could Venezuela be edgier than Deutschland?

Atlantis Consigliore's picture

Rehypothecated...and its gone...even FED sold it out. 

and the 8000 tons in Ft Knox? wheres the Yeyo?

and if anything happens to the Yeyo tony:   aiiiiiy, bobisee!!!

mariobar's picture

Maybe they just forgot where exactly was the German gold stored. Need now to match German fingerprints or ADN on every piece.

Seasmoke's picture


More Lint than Coin's picture

You believe an official article that states"Traces of silver and platinum give

the gold a whitish shade, copper is most often foundin reddish bars, and iron produces a greenish hue."

AGORACOM's picture

You're all forgetting that Hans Gruber's brother stole a boat load (literally) of the gold from the NY Fed in Die Hard 3.  Yeah, they busted him in Canada just before he took off with the loot .... but did anybody ever put it back? 

Gold bars to donuts its all still sitting in that damn warehouse.

George ... The Greek ... From Canada


cynicalskeptic's picture

Well... it seems like they stole Libya's gold to pay off Hugo when he wanted Venezuela's gold back.....  I guess there's no easy-to-knock-off country with large enough gold holdkings to make good Germany's claim.....  oh wait - how much gold does Iran have?


If India is smart they'll triple the guards on that temple

Michelle's picture

Of course it will take 7 years, takes a long time to mine and refine 300 tons.

El Hosel's picture

  Sratching Der seven year itch...Bitchez

AC_Doctor's picture

The Fed has an exlcusive contract with Cash For Gold and will use these proceeds to make more salted bars for German delivery.

AgAu_man's picture

I don't know if you knew, but Germans are fond of gold teeth and gold fillings.  Let's say that there are a mere 8,000,000 such people out of a total population of 85,000,000, and that each has a mere 10 grams (that's 10/31.1 of an ounce) in their mouth.  That's 8,000,000 people * 0.010 kg, or 80,000 kg, or 80 tons.

Add to this all the gold that their Mid-East and African "Refugees" possess, then you're up another 20 tons, for a total of 100 tons.

Have German dentists yet been directed by Berlin to remove all gold fillings and teeth from their patients?  It's been done before.  Just make sure it doesn't end up in Swiss vaults this time, as they are not as secure (unhypothicated) as they used to be.

axel_hose's picture

Maybe Germany should buy some shares of GLD. The odds of those being backed up by reall bullion are about the same as the US Depository having any real bullion. I think Goldfinger got it all.

are we there yet's picture

Pussy Galore in Goldfinger rehypothicated the gold.

TheObsoleteMan's picture

This will set off a chain reaction of gold requests from other banks. This will serve as the spark for the rocket rise in the price of physical gold. Now that the word is out, there will be a scramble for physical. I always suspected that it would not be the retail investor that would start this run, but the banks themselves. The next couple of weeks will be interesting.

lolmao500's picture

Is there even a list of countries that are supposed to have gold there??

The top spot is probably not Germany... Maybe the UK got even more gold there?

Michelle's picture

Germany's gold has been leased and re-leased and packaged and repackaged and eventually securitized to numerous parties in various tranches that securing title may be difficult. We are awaiting Linda Green's signature to help resolve this ownership problem.

The Duke of New York A No.1's picture

Within the next 6 to 12 months; JP Morgan will buy a private mining company ... the real buyer of course will be the Fed .... the purchase of the private mining company will be to dig the Fed out of their 300 ton margin call.

The Heart's picture

Ah shucks, they don't have to do that. All they need to do is take over the Canadian front company owned by maurice strong in china that has been sucking the massive amounts of gold from the Sangre de Christo mountain range by Crestone, CO for decades. More of the American gold goes to Canada and then to china than what is mined from anywhere else. This mine and the world largest, the Independence mine in Crestone that is owned by china now can both be confiscated to pay germany off, pay the national debt off, and still have enough gold to build a six by six foot wall around the entire border of the continental USA.

cynicalskeptic's picture

As if we can afford to piss off China......  The US owes China a LOT more than a few hundred tons of gold

cynicalskeptic's picture

As if we can afford to piss off China......  The US owes China a LOT more than a few hundred tons of gold

overmedicatedundersexed's picture

the heart, canada and gold, seems for yrs my local gold and coin store, they only buy have no gold to sell.. let a cat otta the bag, I asked the owner why he only buys gold and would not sell to me..he said oh I HAVE a buyer in CANADA, he makes frequent trips to CANADA to sell gold he buys here in maryland. I first said what they let you across the border with large amounts of gold...he said well you as a citizen can't do it, but I as a gold trader can.

I said give me a price the CANADA buyer gives you and I WILL pay more..HE SAID NO. drop jawed I  walked out, to this day this is going on and I can find no reason for him to only sell to CANADA....perhaps he has a lock box up there and is not selling at all

besnook's picture

it is not money so why is everyone acting like they have a wedgy? bernank shouldn't care. he is the one who told me gold is not money.

ejhickey's picture

Meanwhile back in Congress:

House Democrats are pushing legislation to repeal the federal debt ceiling, saying the borrowing limit has no practical purpose and has come to be used for political maneuvering that can have devastating economic repercussions."


say HELLOE to Unlimited Debt

pashley1411's picture

a few months to ship it.   6 1/2 years to test every mf bar.  

Yancey Ward's picture

Well, the Fed wouldn't want to have to buy 300 tons all at once.