Germany's Gold Repatriation Unlikely To Assuage Public Concerns

Tyler Durden's picture

Submitted by GoldCore

Germany's Gold Repatriation Unlikely To Assuage Public Concerns

Today’s AM fix was USD 1,683.25, EUR 1,260.11, and GBP 1,050.85 per ounce. 
Yesterday’s AM fix was USD 1,679.75, EUR 1,262.78 and GBP 1,047.55 per ounce.

Silver is trading at $31.53/oz, €23.68/oz and £19.75/oz. Platinum is trading at $1,687.50/oz, palladium at $725.00/oz and rhodium at $1,125/oz.

Cross Currency Table – (Bloomberg)

Gold inched up $1.00 or 0.06% in New York yesterday and closed at $1,679.90/oz. Silver rose to $31.46 in Asia before it dropped off to $31.07 in London, but it then climbed to as high as $31.551 in New York and finished with a gain of 0.25%.

Gold held firm on Thursday, as investors weighed concern about slowing global economic growth and expectations for more stimulus measures. 

Platinum supply shortages in South Africa limited its 7 day rally.

Thomson Reuters GEMS reported that gold investment favoured by negative real interest rates and debt concerns, is expected to drive prices to a record average high in 2013.

Although the U.S. Fed minutes earlier in the month stirred concerns about tightening monetary policy, the U.S. debt ceiling issue still looms and without an agreement the U.S. government will run out of money by mid February.

The Bundesbank announced yesterday that they will repatriate 674 metric tons of their total 3,391 metric ton gold reserves from vaults in Paris and New York to restore public confidence in the safety of Germany’s gold reserves.

IMF Germany Total Reserves Minus Gold in Millions of USD 

Whether the repatriation of only some 20% of Germany's gold reserves from the Federal Reserve Bank of New York and the Banque of Paris back to Frankfurt manages to allay German concerns remains in question. 

Especially given that the transfer from the Federal Reserve is set to take place slowly over a seven year period and will only be completed in 2020.


The German Precious Metals Association and Germany's ‘Repatriate Our Gold’ campaign said that the move by the Bundesbank did not negate the need for a full audit of Germany's gold. 

They want this to take place in order to protect against impairment of the gold reserves through leases and swaps. Indeed, they have called for independent, full, neutral and physical audits of the gold reserves of the world's central banks and the repatriation of all central bank gold - the physical transport of gold reserves back into the respective sovereign ownership countries.

It seems likely that we may only have seen another important milestone in the debate about German and global gold reserves.

Mohamed El_Erian of PIMCO in an op-ed piece in the Financial Times said that the German gold move should have “minimum systemic impact”. 

But he acknowledged the risk that this could be wrong and the decision could “fuel greater suspicion” which could result in a “hit to what remains in multilateral policy cooperation would be problematic for virtually everybody.”

He warned that “growing mutual mistrusts” could  “translate into larger multilateral tensions, then the world would find itself facing even greater difficulties resolving payments imbalances and resisting beggar-thy-neighbor national policies.”

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Germany creates pile of golden opportunities – The Financial Times

Germany's Bundesbank brings gold reserves home - Reuters

Bundesbank to Repatriate 674 Tons of Gold to Germany by 2020 - Bloomberg

Germany Repatriates Gold Reserves – The Wall Street Journal

Platinum up for 7th day as South Africa crisis stirs supply fears - Reuters

Concern in Dublin: Six tonnes of Irish gold in Bank of England – The Australian


Bundesbank Weighs Bullion Against Public Pressure – The Financial Times

The Meaning of Germany’s Gold Decision - The Financial Times

Gold Price On Rise: How To Invest In Bullion – The Telegraph

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falak pema's picture

Lame duck strategy planned and executed to smoothen German nationalist ruffled feathers. 

The Juggernaut's picture

What would happen if USA or any other central bank defaulted on their physical delivery?  Why do they want to take the guns away again?

falak pema's picture

No way that happens for 600 T over 7 years. Its carefuly planned and prepared. Of this 300 T comes from french vaults. 

dwdollar's picture

Why would they broadcast their true motives and intent? They have nothing to gain from panic until they have all their gold and it's audited.

Badabing's picture

Poppies will make them sleep.

Now sleep….sleep

maxmad's picture

Love how the MSM spins it!  LOL "Hey Germany we know you want your Gold right away, here's the deal- We'll get you half right now-- but only if you announce that you don't need it all until 2020-WINK, WIN!!!  "We dont need the sheep waking up!" 

Meanwhile the ship with the Gold is already on its way! 

TuesdayBen's picture

Today's Washington Post piece 'Germany to Gather its Foreign Gold' states 'Germany plans to repatriate its gold over 7 years .... An acknowledgment that the logistics of shipping 674 metric tons of gold are extraordinarily complex'. !!!!!!! 2,500 days needed to load and unload some planes!!!! The WaPo, always glad to do its part to maintain the charade. Friggin goons.

Snakeeyes's picture

Look at European real GDP. Will ANYTHIN make them feel better? Certainly not repat of gold.

BoNeSxxx's picture

You don't have to look as far as Germany to assess the public's concerns...

Look at the paper/phyical decoupling.

Does anyone remember when the Apmex 'Buy Price' was slightly below spot?  I do.  And the sell price premium was less than $50 (for gold).

Now the 'Buy Price' is about $50 over spot.  And the shift has occured in roughly 2 years time (does anyone know exactly?).

And the public is still asleep for the most part... but those with resources to protect are waking up at a pretty good clip.

Joe Davola's picture

War's gonna be over before it's in the bundbank.

Captain Kink's picture

Pay no attention to the man behind the curtain...

Badabing's picture

Hey captain

It amazes me how much hidden meaning is in OZ

Remember that the original slippers where silver

"Mercantilist governments resented the perpetual drain of silver from West to East in payment for Oriental goods,

The British introduced opium along with tobacco as an export item to China in order to reduce their trade deficit."

Now the line, “Poppies will make them sleep” spoken by the west has more meaning’

Correction: spoken by the witch of the west

Falconsixone's picture

1913  - 2013

Gone but not soon enough

BandGap's picture

The people broadcasting want TPTB to understand that they are being watched. It is not about panic, it is about transparent accountability.

mvsjcl's picture

Your naiveté leaves me breathless. The media as a implement of transparency? Really?

debtor of last resort's picture

They will probably not suffer a tungsten-terrists life.

unwashedmass's picture

i suspect we're going to find out ....before too long. 

GetZeeGold's picture



What would happen if USA or any other central bank defaulted on their physical delivery?


They would get to have dinner with Jon Corzine and Eric Holder.

HardAssets's picture

Well, you and most of the country have been pledged as colllateral to the Chinese. Since theyll be coming to do a repo on you, the powers that be thought you just might not be too enthusiastic about that.

AE911Truth's picture

Nope. The Liens are against the private corporation known as the Federal Reserve and it's share owners which are now bankrupt.

Unless you own stock in a big bank that in turn owns stock in the Federal Reserve System, then you are not personally liable.

Gee, I hope I am not wrong on that.

El Hosel's picture

.... The US sure could use some of that Public Concern. WTF! Lets trade the gold for public awareness, 300 Ton would me a nice start.

farragut's picture

Curious story about the diamonds; wonder what the real story is there. Are air shipments the preferred manner of transporting gold bars?

Ghordius's picture

that was 1968, my lord of admiralty. nowadays insurance fees practically force air travel

note how the most important vaults are all located in airports, including the new chinese ones

Winston Churchill's picture

Would be close because each(of many)planes would be underwritten seperately.

Whereas one load on a warship would be sliced into segments of risk.

Anyway they are not getting 300 tons at once.In reality they will be getting none.

On the plus side,Zimbabwe Ben did kiss them first......

Freddie's picture

The Germmans and Dutch do not trust the islamic marxist Mugabe. 

WhiteNight123129's picture

Short Treasuries Bitchez!


Dr. Engali's picture

Well if it took seven years for "the world's largest holder of gold" to pay me back, I'd be a little concerned too.

GetZeeGold's picture



No worries.....we audit that crap on a regular basis.

LeisureSmith's picture

Gaddafi's gold went poof. Wonder where it ended up....maybe the french got a hot tip about some antsy germans.

Edit. Still short 150+tons, so Mali needs to be liberated pronto. Barbarous relics in the hands of barbarians just ain't right.

NeedtoSecede's picture

I can't believe I haven't seen this one yet...

But I think my new favorite geopolitical war cry is going to be:

Beggar thy neighbor Bitchez!

Svendblaaskaeg's picture

Spiegel Online:

Survey Shows Cracks in German-French Relations

The relationship between Germany and France has suffered as a result of the economic crisis, according to a new survey undertaken on the eve of celebrations marking the 50th anniversary of the signing of the Elysée Treaty. Germans are seen as arrogant and the French as economically unimportant.


..get ze gold

El Hosel's picture

Yeah, that gold would come in handy for the Germans if the UE ever has any trouble with its fiat currency WTF, WTF, WTF.... Not so sure it helps if it takes seven years! Bernanke can name that tune in no time with his digital bazooka, pass the bucks Benny.

Sudden Debt's picture

Well it seems that the Germans DID loan out their gold and that they get paid for it.

Contract is a contract.

Even if idiots signed it.

it remains...

a contract.


El Hosel's picture

How much is it for 300 Ton? With shipping and all? How many ton of 100 dollar bills is this?

francis_sawyer's picture

A Contract?... A CONTRACT??... [YGFBKM]

Sudden Debt's picture

Well, I don't know for Germany, but Belgium leased out it's gold, 227.5 tonnes and gets 1.9 million euro's for it each year.

enough to buy about 1500 ounces of gold with it... or about 45 kilo's of gold...

it doesn't really sound like that good of a investment if you look to the countries on how they use their gold he?

El Hosel's picture

Leasing your gold is right up there with leasing your wife in my book. I'd rather have it next to me!

Sudden Debt's picture

You can use it but make sure you don't brake it!

francis_sawyer's picture

Go ahead & tell that to your wife... I'm sure it'll be the most romantic thing that she's ever heard... [especially the "IT" part]...


"Honey ~ I was THINKING about leasing you out... But then I got to thinking about my gold & thought to myself, 'Would I lease IT out'?... I came to the conclusion that I'd rather have IT by my side... Same goes for you sweet cakes... Please stop burning the toast & I'll love you even more'...

El Hosel's picture

Damn, you wife makes toast? She is a keeper.

Winston Churchill's picture

What a quaint idea.

Contracts are like the Constitution now,made to be ignored.

youngman's picture

Why do you need "cooperation" when you are just storing your gold in a vault?????

UNLESS....there are many strings, leases, hedges, loans......attached

kralizec's picture

Let's play like the big boys...rehypothicate your assets, it's fun for the whole family!  Nobody ever gets hurt, honest!

Quinvarius's picture

Germany shoud have asked for all of it, right now.  We defaulted on gold debts in the 70's when nations and people started asking for what was theirs.  We are going to do it again.  You need to be first in the queue with a hard delivery deadline.  Germany is just being nice to the Fed, but it will backfire on them.