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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WallowaMountainMan's picture

unwinding about 2 -3 % of their rehyptothicated paper.....takes 7 years...


how long would it take to unwind ........ ? fill in the blank.

Downtoolong's picture

JPM needs to Reverse-Un-Repo-Hypothecate it first.

Falconsixone's picture


Mali has gold.


Maybe they'll take all the fucking thieving jews at the fed instead? They used to know what they're good for.

Falconsixone's picture

Good time to pull the rug out since their times up this 8 years they won't exist.

Oblowjobs about to get his crown and mink robe...


Smuckers's picture

I wonder if Germany will rethink this 7 year leisurely stroll if other countries repatriate in quicker fashion.

Pseudo Anonym's picture

a shade of tungsten

gold the Fed supposedly holds, is shown in yellow with a shade of tungsten

good one.

From Germany With Love's picture

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

That's a joke, right?

rsnoble's picture

Looks like im not the only one noticing the African connection.  And people want to buy bonds from these bastards because they're safe????  Move the doomsday clock up another minute.

knowless's picture

wow. pictures are priceless, like a burger king training video.. why isn't she wearing safety glasses when using that hammer?!?! i'm sure it says right on it wear eye protection..


is this shit real?

cynicalskeptic's picture

All posed PR photos - anyone who actually handles gold bars wears overalls without pockets and has magnesium shoe protectors.  Drop a 400 oz London Good Delivery bar on your foot and you're in for a world of hurt - and multiple fractures.

alfbell's picture

Germany: We would like to take physical possession of our gold.

Bernanke: You killed 6 million of my people. Piss off!

andyupnorth's picture

So 7 year for 300 tons (5%)... and 133 years to deliver all the remaining "gold"?

awakening's picture

Article aside; I don't think for a second that other countries are not watching this farce with Germany unfold and may too soon question the validiity of their gold holdings in the hands of Americans.

1971 all over again (gold run on the US), Bring it!

alfbell's picture

Germany: We would like to take physical possession of our gold.

Bernanke: Apparently JPM took it and created GBSs with it (Gold Backed Securities). There is a confusion now because every pension fund, insurance company, hedge fund on the planet (and we here at The Fed) are asserting that THEY own the gold. This is gonna take at least 7 years to unravel.

rsnoble's picture

That is my first thought is that one of these bastard fuck banks have it all fucked up somehow.  

alfbell's picture

Germany: We would like to take physical possession of our gold.

Bernanke: About 10 years ago we hired a cleaning service to organize and put order into the basement at the NYFRB. All debris, trash and unnecessary furnishings were thrown out... and that would include barbarous relics.

jim249's picture

Bernanke got the request form Germany and "turned a whiter shade of pale".

boeing747's picture

I'm very sure that German's golds are owned by GLD already. Long Police Dept.

MrBoompi's picture

At today's price 300 tons is only $18 billion. This is basically a rounding error to the Federal Reserve. When you can create money out of thin air, manipulate the price of gold, and spread out purchases over whatever damn time period you please WHY WORRY?

awakening's picture

Because Germany has asked to repatriate their gold, not any old bit of the elusive metal but their SPECIFIC gold (the very same bricks they delivered in the safe keeping of the US Federal <lol> Reserve Bank) that they had entrusted in the hands of the US. It's not only about getting delivery of any gold, this game is the ultimate test of the full faith and credit of the USG (and thus the USD).

Matt's picture

You think they actually requested specific bars by serial number, and they have to hunt down or recreate those exact bars?

awakening's picture

Of course they did, why else would anyone go through all the hoo-ha to get the gold shipped across instead of digitally wiring to the Germans several payments of USD (off the books, shadow transfer called QE79 [element 79] ) and just buy all the Gold they can get their hands on (they still mine the stuff, let alone other forms of obtaining gold possession as seen by events in Africa).

yogibear's picture

It would be interesting to see what would happen if the gold bars with the serial numbers were gone. You would see the German bank pull even more to see how many more bars were gone.

It's to test the integrity of the US Federal Reserve Bank. You better believe that they don't want the bars privately over 7 years. They probably want it as soon as possible. They may say they want it over 7 years publicly to divert a market disaster.

Yeah, let's test the Federal Reserve's integrity. Honor among thieves.


cynicalskeptic's picture

Back in the 80's - when gold was still a bararous relic and not given much thought - the bars in the basement of the Fed were all nicely stacked and segregated in cages by  country of ownership.  The history of those bars was fascinating - much of the European gold bore Reichsbank eagle and swasticka stamps from when Germany grabbed most of the European stocks.   You had a wide variety of stamps - from the original smelter to various ownership stamps over the years.

However if Germany engaged in a swap agreement (as has been reported ) back around 2000, then the US is not obliged to return the very same bars Germany deposited.  Nonetheless, the fact that they are talking YEARS to return Germany's gold does lend credence to speculation that it's simply not there and has to be 'procured'.


You have to wonder -what with the tungsten rumors and the lack of a Ft. Knox audit - if the US was paying for oil under the table with gold - a 'bribe' so to speak to keep the Saudis and others propping up the petrodollar.  The US is paying in gold as long as the Arabs demand that others pay in dollars.......     one way to keep the Ponzi scheme going for a while longer.   If the dollar was not the worlds's reserve currency, it would have coillapsed shortly after Nixon reneged on Bretton Woods and ceased the convertability of the dollar into gold.   Seems like DeGaulle was on to something.

AE911Truth's picture

Ref: cynicalskeptic wrote: “US was paying for oil under the table with gold”

Yes. Have a look at page 5 of the October 1981 issue of Saudi Aramco World magazine wherein it states: “Aramco, required to pay royalties and other payments in gold to the Saudi government, could not obtain the gold at the monetary price fixed by the United States so the U.S. government specifically began to mint the "disks" - actually bullion in coin form for these payments."
Source: The Numismatist.

User 3461's picture

Sort of seems like the kind of stuff that could trigger a nasty little war or something. Given Germany's odds, maybe not. Now, add to that a continent of pissed off countries, wanting their gold back... "citizens, turn in your gold to overt war" And, just to save time & money, they'll get the guns at the same time.


I'm starting to get a bit uneasy about things.

goldenbuddha454's picture

Hello Mr. Muller, welcome to New York.  Do you have a receipt for said 300 tons of gold?  You know we don't allow returns without a receipt don't you?

SirSnarksalot's picture

It doesn't say that it will take the Fed seven years.  It says "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."   What's your evidence that the seven year "phased relocation" is because the fed needs seven years to deliever?  A less frothy reading of the situation would be that the Bundesbank came up with a seven-year phased relocation plan to try to avoid the appearance of panic.  

nathan1234's picture

The Bundesbank is trying to cover it's ass.

Moving this amount of Gold is not difficult at all.

When they move chemical weapons and nuclear weapons with all the required security in a jiffy, this must be a piece of cake.

They have to answer the German people and show on record that it took action to recover their Gold. When small amounts come in  periodically the citizens can be lulled into thinking all is okay.

Their must be some deal between the Fed and the Bundesbank to do it in this manner so that the Bundesbank can cover it's ass.


mendigo's picture

Its a good point.

Still, one year would seem fairly methodical.

nathan1234's picture


America's Gold Reserve DOES NOT EXIST

God help those countries who trusted America.

They have been swindled.

I hope this starts a Domino effect and all countries having their Gold in America ask for all of it back.

The citizens of each country should insist that their Governments call back the Gold to their countries.

The US Fed is the Biggest Ponzi scheme in the history of the world.

The intention of the Fed Reserve is to buy back Gold slowly using its paper money from suckers who think it ( US Dollars) has value and slowly send it to Germany over 7 years.


reader2010's picture

Mark my words. They first came after your civil rights, then they come after your weapons. Finally they will come after your gold and silver. 

jmc8888's picture


More like seven years to buy 300 tons to send to Germany.


mohawk5573's picture

All I want someone to tell me why, It didn't take as long for Venezula or the other countries to get their gold. and being so why do the Germans not have some questions or comments about this?

The reason I am asking is the silence that occurs around here when something happens in the United States. Something funny happens with the Banks (Corzine) no questions in the mainstream or in public and I get shunned when bringing it up.

So is this the quiet contentment from the Germans too?

blindman's picture

Gold Carry Trade : What is it?

What is the Gold Carry Trade? How does it impact the price of gold? What role do bullion banks play in the process?

The Real Story Behind the True Gold Bull Market
" ..Let me tell you why the gold carry trade will not be sustainable forever. It’s very simple. All we have to do is look at the step where bullion banks have to buy back the gold sold on the spot market in order to pay back the central banks.

In order for this to be profitable for the BBs, the price of gold has to experience very limited gains during the time the gold is leased out. Or the price of the futures contract purchased by the BB has to be near enough to the price of gold when the bullion bank initially unloaded the leased bullion on the spot market. If the price of gold heads too high, it will not be profitable for BBs to partake in being the intermediary for such transactions.
"....rapid trends

tony bonn's picture

the fed no more has any german gold than it does usa gold.....this is the preposterous joke of the new millenium....germany pissed away its gold decades ago just as the fed did the same thing....the fed owns a lot of gold in theory but in practice it has virtually none.....anyone believing otherwise probably also believes the warren commission report and has a giant FUCKTARD written across his forehead....sorry.

DarthVaderMentor's picture

I smell a run by Central Banks on their FRB stored gold........


topspinslicer's picture

Guess the German's can't take advantage of this month's 50 free listings on ebay international. That sucks.


topspinslicer's picture

7 years? whoa!! slow down! what's your hurry??!!

mendigo's picture

You got to be kidding me. These guys are amazing.

Corozine better be taking notes.

I cannot imagine what would be the absolute most shit-faced unscrupulous thing our government could do, but two things near the top of the list would be:

1) Conceive a coin which will instantly pay-off our gargantuan debt, as in: "Here Mr Wang Bo. You guys have been great. Take two! Keep the change. Your very welcome."

2) Be unable to deliver several tons of gold, supposedly carefully held in a super safe vault. 

Well at least the end of the modern financial world may prove to be incredibly humorous - this has got to be a broadway musical (with Nathan Lane of course as pompous banker) or maybe done as a german opera.

jonjon831983's picture

"For God And Gold"


"In Yemen al Qaeda is offering a large reward for anyone who can kill the U.S. ambassador to Yemen. The reward is to be paid in gold (three kilograms, worth $160,000 at current prices). Cash (type of currency not specified) rewards ($23,300) are being offered for each American soldier in Yemen who is killed. This sort of thing is nothing new for al Qaeda but the rewards are not usually given this kind of publicity."


Hm interesting

MrPalladium's picture

Bottom line here, boys and girls, is that Germany has just added itself to the long list of countries acquiring gold, albeit indirectly by satisfaction of a prior claim against a fraudster who cannot make good.

MrPalladium's picture

Bottom line here, boys and girls, is that Germany has just added itself to the long list of countries acquiring gold, albeit indirectly by satisfaction of a prior claim against a fraudster who cannot make good.

gnomon's picture

Germany should threaten to leave the EU and pair up with Russia, if they don't get their gold.  They are all a bunch of skunks anyway.  So what does it matter?


Oldballplayer's picture

That worked out well in the past. What could go wrong.

plata pura's picture

the biggest hype of all be the amount of gold made to bullion; an inverted hype to keep it's precious state precious. a tory archaeologist at a tel in the negev made find in 1857ce that be 85% of todays reported worlds gold supply. debeers made a select few in the ussr very wealthy by keeping the lid on their warehouses of diamonds. it's like that. in conclusion silver is great silver is good.

Keyser-Soze's picture

Germany: "Bernanke is a douchenbaggen."

Milton Waddams's picture

Look at the people on page 13 of the linked PDF; it's choreographed, no doubt, to inspire confidence (by god, they have clipboards ... and they are actually looking at it!).  Now why might an organization (attempt to) manufacture the image of confidence?  Much <3 to Bernanke's Fed; he took the 'transparency' agenda to heart...

Barbaric relic's picture

Curious indeed how they're giving the fed more than 7 years to deliver a relatively small amount of gold -- were there frantic begging phone calls from the fed to give them time to come up with the gold?  Will the fed now allow buba to look at their gold at the ny fed and do a propert audit of it?