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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.”

For breaking news and commentary on financial markets and gold, follow us on Twitter.

NEWS

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

COMMENTARY

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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Thu, 01/17/2013 - 10:46 | 3162088 falak pema
falak pema's picture

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

Thu, 01/17/2013 - 10:49 | 3162097 The Juggernaut
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?

Thu, 01/17/2013 - 10:49 | 3162110 falak pema
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. 

Thu, 01/17/2013 - 10:56 | 3162154 dwdollar
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.

Thu, 01/17/2013 - 10:59 | 3162164 Badabing
Badabing's picture

Poppies will make them sleep.

Now sleep….sleep

Thu, 01/17/2013 - 11:09 | 3162206 maxmad
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! 

Thu, 01/17/2013 - 11:26 | 3162291 TuesdayBen
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.

Thu, 01/17/2013 - 11:58 | 3162433 Snakeeyes
Snakeeyes's picture

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

http://confoundedinterest.wordpress.com/2013/01/15/game-of-thrones-gold-...

Thu, 01/17/2013 - 12:23 | 3162545 BoNeSxxx
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.

Thu, 01/17/2013 - 12:27 | 3162557 Joe Davola
Joe Davola's picture

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

Thu, 01/17/2013 - 11:09 | 3162207 Sweet Chicken
Sweet Chicken's picture

Pure awesomeness +1

Thu, 01/17/2013 - 11:11 | 3162209 Captain Kink
Captain Kink's picture

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

Thu, 01/17/2013 - 11:27 | 3162259 Badabing
Badabing's picture

Hey captain

It amazes me how much hidden meaning is in OZ

Remember that the original slippers where silver  

http://news.silverseek.com/SilverSeek/1297866905.php

"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

Thu, 01/17/2013 - 11:25 | 3162275 Falconsixone
Falconsixone's picture

1913  - 2013

Gone but not soon enough

Thu, 01/17/2013 - 11:18 | 3162238 BandGap
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.

Thu, 01/17/2013 - 11:42 | 3162369 mvsjcl
mvsjcl's picture

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

Thu, 01/17/2013 - 10:50 | 3162111 debtor of last ...
debtor of last resort's picture

They will probably not suffer a tungsten-terrists life.

Thu, 01/17/2013 - 10:49 | 3162112 unwashedmass
unwashedmass's picture

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

Thu, 01/17/2013 - 10:53 | 3162114 GetZeeGold
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.

Thu, 01/17/2013 - 10:55 | 3162145 El Hosel
El Hosel's picture

.... and Party at DSK's Hotel after.

Thu, 01/17/2013 - 11:54 | 3162411 Martel
Martel's picture

It won't be called default, but a delivery by other means.

http://i218.photobucket.com/albums/cc280/k21160/PayInGreen_zps5da18e90.png

Thu, 01/17/2013 - 11:16 | 3162229 HardAssets
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.

Thu, 01/17/2013 - 13:45 | 3162592 AE911Truth
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.

http://www.scribd.com/Free_Nations/documents

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.

Thu, 01/17/2013 - 10:49 | 3162104 El Hosel
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.

Thu, 01/17/2013 - 10:51 | 3162125 Sockeye
Sockeye's picture

I wonder if they'll use Swiss Air for the 60 shipments?
http://www.cbc.ca/news/canada/story/2011/09/16/f-swissair-diamonds.html

Thu, 01/17/2013 - 11:03 | 3162182 farragut
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?

Thu, 01/17/2013 - 11:43 | 3162372 Winston Churchill
Winston Churchill's picture

Warships normally.

Thu, 01/17/2013 - 11:50 | 3162401 Ghordius
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

Thu, 01/17/2013 - 12:04 | 3162451 Winston Churchill
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......

Thu, 01/17/2013 - 12:56 | 3162691 Freddie
Freddie's picture

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

Thu, 01/17/2013 - 10:47 | 3162101 WhiteNight123129
WhiteNight123129's picture

Short Treasuries Bitchez!

 

Thu, 01/17/2013 - 10:49 | 3162108 Dr. Engali
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.

Thu, 01/17/2013 - 10:52 | 3162124 GetZeeGold
GetZeeGold's picture

 

 

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

Thu, 01/17/2013 - 10:55 | 3162144 Sudden Debt
Sudden Debt's picture

Yep, Dagobert's poolboy is taking care of it!

http://s3.amazonaws.com/rapgenius/Dagobert-Duck.jpg

Thu, 01/17/2013 - 11:02 | 3162122 LeisureSmith
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.

Thu, 01/17/2013 - 12:41 | 3162634 NeedtoSecede
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!

Thu, 01/17/2013 - 10:51 | 3162126 Svendblaaskaeg
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.

http://www.spiegel.de/international/europe/new-survey-shows-german-frenc...

 

..get ze gold

Thu, 01/17/2013 - 11:00 | 3162174 El Hosel
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.

Thu, 01/17/2013 - 10:52 | 3162127 Sudden Debt
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.

 

Thu, 01/17/2013 - 10:54 | 3162137 El Hosel
El Hosel's picture

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

Thu, 01/17/2013 - 10:59 | 3162166 francis_sawyer
francis_sawyer's picture

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

Thu, 01/17/2013 - 11:03 | 3162184 Sudden Debt
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?

Thu, 01/17/2013 - 11:16 | 3162228 El Hosel
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!

Thu, 01/17/2013 - 11:19 | 3162242 Sudden Debt
Sudden Debt's picture

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

Thu, 01/17/2013 - 11:48 | 3162246 francis_sawyer
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'...

Thu, 01/17/2013 - 13:42 | 3162914 El Hosel
El Hosel's picture

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

Thu, 01/17/2013 - 11:45 | 3162380 Winston Churchill
Winston Churchill's picture

What a quaint idea.

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

Thu, 01/17/2013 - 10:54 | 3162135 youngman
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

Thu, 01/17/2013 - 12:47 | 3162658 kralizec
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!

Thu, 01/17/2013 - 10:57 | 3162147 Quinvarius
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.

Thu, 01/17/2013 - 10:55 | 3162149 earnulf
earnulf's picture

WHY do you need a seven year period to repatriate YOUR gold?

Unless YOUR gold isn't where you thought it was or WHAT you thought it was.

Besides, in SIX years, it won't matter away, right, right?

 

Thu, 01/17/2013 - 11:06 | 3162193 Sudden Debt
Sudden Debt's picture

American workers....

first you need to negotiate with the truckers union...

than with the aviation union...

than again with the truckers union and the aviation union on who does what...

....

yep... might take about 7 years to get things done....

 

Thu, 01/17/2013 - 10:55 | 3162150 Dango
Dango's picture

This is the current agreement. No reason why nationalist sentiment could not ramp up in Germany, leading to their leaders demanding more on an accelerated time table. When that happens, look out!

Thu, 01/17/2013 - 10:56 | 3162155 yogibear
yogibear's picture

All you have to know is the US deficit will be staggering in 4 years. It will be well over $20 trillion.

State bailouts

Post office

10,000/day Social Security retirees.

Public opension funds need to be bailed out.

The process of kicking the cangoes on until lenders say or the US looses it's reserve currency status.

 

Thu, 01/17/2013 - 10:58 | 3162160 negative rates
negative rates's picture

So it's leveraged to the hill, capital hill that is.

Thu, 01/17/2013 - 11:05 | 3162192 Yen Cross
Yen Cross's picture

Estimated # of shipments to transfer tungsten to Berlin.(one keystroke)   I'm  being  facetious. The said booty could be shipped in a variety of ways.

  The point is, as Tyler so succinctly stated in an earlier article, ( C.B's don't trust each other) <

  Welcome back to theriverstyx ,circa 2008. ( The Ferryman)

Thu, 01/17/2013 - 11:16 | 3162231 fuu
fuu's picture

Quite the rocky road to scamper along.

Thu, 01/17/2013 - 11:19 | 3162248 Yen Cross
Yen Cross's picture

Fuu, I'm so disgusted with my trades over the last 2 weeks. I made a shitload of cash, the wrong way.

Thu, 01/17/2013 - 11:23 | 3162264 francis_sawyer
francis_sawyer's picture

Take the Ravens [& the points]... Again... You'll double your money... Even better ~ take the Ravens on the MONEY LINE [like I gave you all last week] ~ & you'll make 4-1...

Thu, 01/17/2013 - 11:25 | 3162277 fuu
fuu's picture

So give it back. =)

Thu, 01/17/2013 - 11:06 | 3162195 topshelfstuff
topshelfstuff's picture

a read of this article gives a lot of detail, i'll add a bit of it here, understand that Deep Storage was added and also past reports edied to add the words also:

 

http://www.financialsensearchive.com/fsu/editorials/kirby/2007/0223.html

DEEP STORAGE, DEEPER HOLES, DEEPEST OF TROUBLES
by Rob Kirby
KirbyAnalytics.com
February 23, 2007

*Deep Storage: Deep-Storage gold is the portion of the U.S. government-owned Gold Bullion Reserve that the U.S. Mint secures in sealed vaults, which are examined annually by the Department of Treasury's Office of the Inspector General. Deep-Storage gold comprises the vast majority of the Reserve and consists primarily of gold bars. This portion was formerly called "Bullion Reserve" or "Custodial Gold Bullion Reserve."

*Working Stock: Working-Stock gold is the portion of the U.S. government-owned Gold Bullion Reserve that the U.S. Mint uses as the raw material for minting congressionally authorized coins. Working-Stock gold comprises only about 1 percent of the Reserve and consists of bars, blanks, unsold coins, and condemned coins. This portion was formerly listed as individual coins and blanks or called "PEF Gold."


I would particularly like to draw everyone's attention to the highlighted part of the table above and then to consider the genesis of the definition of Deep-Storage gold  as it’s explained in the accompanying notes at the bottom of the data.

I'd like everyone to take note that sovereign U.S. gold stocks [miners] used to be titled, Bullion Reserve.

 

As James Turk points out, early in the year 2001 ? these stocks were initially renamed ?Custodial Gold Bullion Reserve.? In his article titled, What Is Happening to America's Gold, Turk points out the then discrepancy between the gold accounts on the Treasury's versus the Federal Reserve's balance sheets were NECESSARILY due to clandestine activity [trading of gold] by the Exchange Stabilization Fund [ESF].


In Turk's own words at the time,

?We know that the ESF is active in the gold market because the Federal Reserve says so in its report of the US Reserve Assets.?

Additionally, despite the Treasury's continued denials - Turk reported that previously published reports were changed,

?The US Reserve Assets report now excludes all reference to the ESF, and previous reports already published have been changed. Not only were the figures adjusted, but all reference to the ESF has been eliminated.?


In citing an essay by Reg Howe, it was further explained,

"the figures could not be changed without a change in description, proof that the earlier discrepancies were indeed on account of gold held by the ESF."

Turk then documents the queerest development of all  in June of 2001 - all of U.S. sovereign gold stocks were reclassified  adopting the moniker of Deep Storage Gold.

 

Put Down the Shovels or Dig Deeper?

 

So there you have the short and sweet of it; numbers were altered, previously published reports were changed  all by officialdom - with nary a mention by the mainstream financial press.

Thu, 01/17/2013 - 11:14 | 3162224 topshelfstuff
topshelfstuff's picture

This one is better, it gives the starting point, and prety obvious any gold that "might" get Delivered has yet to be mined

 


http://www.fgmr.com/what-is-happening-to-americas-gold.html

What Is Happening to America's Gold?

 

July 23, 2001 - This past December I wrote ("The Smoking Gun") about my discovery of a discrepancy between two reports that tracked the status of the US Gold Reserve. The Federal Reserve prepares both reports.

 

 

As I write this, I shake my head in disbelief. All I can think of are those old photographs showing sclerotic Soviet despots standing on the parapets of the Kremlin, which would somehow miraculously and inexplicably change over the years depending on who fell out of favor. Having had their erstwhile colleagues air-brushed out of those old photographs as well as Soviet history books, those despots who survived the purge acted as if the truth never existed. Are our Treasury officials no better than that with their apparent reckless disregard for the truth, air-brushing the ESF out of the Federal Reserve reports? Before you answer that question consider also another recent damning action by the Treasury.

 

This past April I wrote ("Behind Closed Doors") about the Treasury's unexplained reclassification of that part of the US Gold Reserve in the Treasury depository at West Point as "Custodial Gold".

 

Using minutes of the Federal Open Market Committee of the Federal Reserve - actually, very revealing minutes referring to "gold swaps" that apparently were inadvertently not redacted before being made public - and by other corroborating evidence, I suggested that the term "Custodial Gold" meant that this part of the US Gold Reserve had been swapped with gold owned by the Bundesbank.


My assertion provoked a firestorm of controversy, but interestingly, no denial from the Treasury. But alarmingly, not only was the Treasury silent to me, its critics and others searching for the truth, the Treasury was apparently also silent to Congress. But recently, the Treasury has 'spoken'.


Last month all of the US Gold Reserve was reclassified. None of the gold stored at West Point, Fort Knox and the other depositories is called US Gold Reserve or even Custodial Gold. All of it is now labeled as "Deep Storage Gold". This action raises a lot of serious questions.

 

Does this change of label mean that this gold is no longer the US Gold Reserve, and if so, why? But if it still is the US Gold Reserve, then why did they change the label, and why don't they still call it the US Gold Reserve?


How can the Treasury act unilaterally without any prior public notification informing anyone that this gold asset would be reclassified? What is the Treasury trying to cover-up by this latest action?

Thu, 01/17/2013 - 11:11 | 3162211 pvbflorida
pvbflorida's picture

If I am another nation that also has gold in the US why would I not ask myself what was the purpose of Germany's audit request. Maybe lacking a feeling of comfort I might request an audit of my holdings. 

Thu, 01/17/2013 - 11:11 | 3162212 pvbflorida
pvbflorida's picture

If I am another nation that also has gold in the US why would I not ask myself what was the purpose of Germany's audit request. Maybe lacking a feeling of comfort I might request an audit of my holdings. 

Thu, 01/17/2013 - 11:12 | 3162218 philosophers bone
philosophers bone's picture

Buba:  Hi Ben, please send us our gold immediately.

Ben:  Listen, the only issue we're having is that a lot of time has elapsed here and financial markets have become so complex that, in theory, more than one party may claim ownership of the gold.  So, to alleviate this concern, give us some time and we'll actually go out an buy new physical bullion and then we'll send that over.

Buba:  How long do you need?

Ben:  Well, our challenge here is that, as you know, we own a ton of Treasury Bonds and MBS and we've committed to buy a shitload more.  So let's say that goes on for another couple of years.  Now we'll need to keep interest rates low for a couple of years after that so that we can unwind all these purchases and get our money back.  Or, who knows, maybe we'll even try to have negative interest rates so we can sell these shitty debt instruments to the Street for a profit.  So, understand, we can't allow the Bond bubble to pop for at least another four years.  Then, we can't buy the gold bullion at the current price levels or god knows what it will be in four years.  So you need to give us another couple years to allow interest rates to spike and depress the price of gold for a bit so we can buy it up.  So we're at six years there.  Give us another year to deliver for good measure - so let's say 2020, OK?

Thu, 01/17/2013 - 11:13 | 3162219 hankwil74
hankwil74's picture

Contrary to the wants/needs of some ZH readers, the gold transfer taking 7 years isn't some sinister conspiracy. It's a simple insurance issue; i.e. no company will insure a huge shipment of gold due to its value.

Thu, 01/17/2013 - 11:27 | 3162295 El Hosel
El Hosel's picture

Yeah, lets put all 300 Ton on one boat and see what happens.

Thu, 01/17/2013 - 11:33 | 3162334 philosophers bone
philosophers bone's picture

Thanks Ben.

Thu, 01/17/2013 - 12:03 | 3162450 Jeepers Creepers
Jeepers Creepers's picture

Obviously it would not all be put on the same vessel, but it sure as hell doesn't take 7 years to move that amount of gold.  A few months, tops.

The timeframe was done so as to not create a panic in markets that the US credit is being questioned, but the shipments will both be sped up and ALL of it will likely be demanded to be returned if there's anyone sane at Germany's helm. 

The music is about to stop, no way in hell does it last another 7 years.

Thu, 01/17/2013 - 11:13 | 3162220 Bahamas
Bahamas's picture

German word for money is geld..that of course means gold,...maybe someone is doing 1+1 in Germany..that's about time!

Thu, 01/17/2013 - 11:18 | 3162240 Falconsixone
Falconsixone's picture

What"s gold?

Thu, 01/17/2013 - 11:21 | 3162256 sudzee
sudzee's picture

Did the world go off the gold standard. I think not. Else why would Germany not accept immediate payment in fiat and go into the open market and buy. My guess is that the "official value" is in the tens of millions of dollars per ounce.

Thu, 01/17/2013 - 11:23 | 3162262 kliguy38
kliguy38's picture

Gold......schmold.........we gotts it and you don't .........of course its a barbarous relic that has no value.........so to protect your best interest....we'll just keep holdin' on to it.........then again.......we may have had to give some to "someone" else.......just in case we did......maybe you shouldn't count on it

Thu, 01/17/2013 - 11:24 | 3162273 Antifederalist
Antifederalist's picture

Why ask for it publicly?

1.  Because you asked for it privately and the U.S. said no.

2.  Because you asked for an audit of your gold held in the U.S. and the U.S. said no.

3.  Because you know how hyperinlation works and you are tired of the world ignoring your warnings.

4.  Because the french are well, the french and they probably actually have it.

Why give such a long time to deliver?

1.  Because you know the U.S. doesn't have it.

2.  Because you want to be somewhat of a "team player" in the central bank world.

3.  Because you don't want to get full blame for blowing up the global ponzi.

Anyway you look at it this is a fucking earthquake move.

Ben, read em and weep you mother fucker.  Gold is money.  Not tradition.  You may not make it until Jan. 2014.

 

 

 

 

Thu, 01/17/2013 - 11:29 | 3162306 hankwil74
hankwil74's picture

You want them to load cargo ship with 300 tons of gold? Who would insure such a shipment?  Who is insuring a16.2 BILLION DOLLAR shipment of gold?

Thu, 01/17/2013 - 11:52 | 3162404 Winston Churchill
Winston Churchill's picture

Probably could insure it easily if you knew how re insurance works.

The custom is for warships to carry large gold shipments anyway,so the Germans

would be self insuring.

Thu, 01/17/2013 - 13:08 | 3162732 Freddie
Freddie's picture

Keep watching TV and Hollywood's crap - your viewership keeps them in power and keeps you a serf.  Mockingbird needs sheep watching their shit to stay in control. 

Thu, 01/17/2013 - 11:25 | 3162276 Lets_Eat_Ben
Lets_Eat_Ben's picture

The mind of the elite is a dark place. It's hard like steel and cold. It calculates like a machine. Human beings that experience love and pain are simply used in equations to determine which peice will be placed next and where and to what possible ends. They think like robots. They wish they were; they seek to de-humanize themselves and "evolve". Can you fucking imagine that?

 

The mind of the elite is an extension of a very simple concept: is there a god? If one believes the answer is no, then you are free to run a fuckin muck. Do whatever you please. Serve your master, for he is a lesser god but a god none the less, and he will reward you in the dark days ahead. Sell out everyone you ever knew; sell out your feelings of love and empathy; brush those pesky emotions aside with your ungodly rituals so that you may refocus your efforts on inflicting widespread suffering and death as your life's work.

 

My great hope is that there is a god. My hope is that my god is more powerful than the one whose deeds must be performed by minions of lost souls. My god is great and just. In this hour, this morning, I hope that a level of hell exists many levels below this one, where those responsible for so much pain and misery get to spend eternity writhing in the very agony that was born of their own indifference. In this hope I would be willing to join them for my part in wishing this terrible fate upon them. I am not a devout Christian, or Muslim, or Jew, or Hindu or any faith whose name means love; and for that I will pay my dues on the day of reckoning, but I tried to do good in this world. Those that turned away from the light, those that are in on the "Noble Lie", I pray to my god of mercy that they suffer the misdeeds they inflicted on their fellow man even if I am right there burning and screaming in agony along with them. I fear no man. I fear no evil. I fear god and I pray that fear spreads throughout the hearts of the people until we can all learn to act decent and be worthy of our time here.

 

"There's room at the top they are telling you still, but first you must learn how to smile while you kill" - Lennon

Thu, 01/17/2013 - 11:33 | 3162331 Antifederalist
Antifederalist's picture

Fear not, brother or sister, there is a god, and I tremble for some people when I reflect that he is just.

Personally, I have little doubt that goodness and love ultimately trump evil all the time and everywhere.  Which does not mean that evil cannot and does not exist in certain times and places.

Fri, 01/18/2013 - 14:58 | 3162283 Anasteus
Anasteus's picture

Yes, it's unlikely to assuage public concerns. In fact, quite the opposite, it may well cast much more doubts and suspicion on the whole process encouraging others to do the same. When the frenzy in the gold market will be accompanied hand in hand with the incomprehensible low price level the rigged nature of the gold market could eventually become apparent even for the dumbest pundits in the town… which can make many people act accordingly.

Heh, right at the moment, after today's noticeable cartel's attack having smashed the price by $16 just an hour ago, the price is again up by $22 :-))

Well, shit happens…

Thu, 01/17/2013 - 11:30 | 3162307 madcows
madcows's picture

Just a simple thought here, why would any country entrust their gold to another country?  What's is to prevent the other country from mishandling it?  They could "accidently" sell it to someone else, or lose it, or stick Tungsten in it, etc...  God help the Germans if they thought the gold was safe in the hands of Goldman Sux.

Thu, 01/17/2013 - 11:30 | 3162308 Quinvarius
Quinvarius's picture

Nothing will get shipped to Germany.  There is nothing real at the Fed.  And if something was there, it would destabilize the US to give it back.  The Fed will give Germany money to buy their gold back in the open market, reversing swap arrangements.

Thu, 01/17/2013 - 16:28 | 3163664 Non Passaran
Non Passaran's picture

Why bother when the US can print the same amount of money, buy the gold and give it to the Germans. And that would be cheaper.

Fri, 01/18/2013 - 01:54 | 3165363 alentia
alentia's picture

That will explode the market. Exactly the same way as shipping all the gold within several months on several ships and planes. The physical stock is levereged probably 1000:1 and has been short sold. 

Thu, 01/17/2013 - 11:30 | 3162309 Grin Bagel
Grin Bagel's picture

Re: hankwil74:

 

Germany could self-insure bt letting their own military do the transfer, air or sea.

Good try, troll

Thu, 01/17/2013 - 11:38 | 3162351 hankwil74
hankwil74's picture

and what if there is an accident with the transfer? To think someone would move 16 Billion dollars worth of gold without insurance is beyond naive.

Thu, 01/17/2013 - 11:39 | 3162352 magpie
magpie's picture

Could a Transall make it Ny-Bamako-Frankfurt aM

Thu, 01/17/2013 - 11:32 | 3162316 AC_Doctor
AC_Doctor's picture

This lame-ass return delivery schedule proves without a doubt, no gold exists at the Fed.  The Cash for Gold places can only suppy so much recycled gold!!!

Thu, 01/17/2013 - 11:32 | 3162326 Sigep0612
Sigep0612's picture

I find it highly incredible that there has not been an audit of the US Gold Reserves in the past 30 years but the graph shows US holdings at 26% of the world total. The Gold Council estimates that  China currently holds only around 2% of world gold but over the past few years they have been buying  gold like crazy.   What's my point?  This ploy by Germany is gibberish.  If an audit was completed of the US. Paris, Germany and London (they're the largest) holdings the world then we would have a true understanding of gold holdings.  Then the derivative market could be examined to determine how truly leveraged and broke central banks have become.   

German politicians have simply made this gesture to calm the nerves of the German population and to get re-elected.   Ask yourself ...why has the MSM ignored gold holdings?   They make news about Manti Te'eo but ignore a major issue like gold?  Why haven't we heard anything about foreign countries and their gold holdings?   Why is JPMorgan continually manipulating precious metals?  Simply because keeping people uninformed is more prudent  than recognition of the actual leverage of gold because if we really knew how thin the ice is.... the world would sink. 

Thu, 01/17/2013 - 11:36 | 3162343 Antifederalist
Antifederalist's picture

Yep.  Sounds like you have taken the red pill.  Pretty soon you will wonder if Oswald was the lone shooter.

Thu, 01/17/2013 - 11:39 | 3162350 Danielius
Danielius's picture

hahaha you stupid Germans.  We have your gold, and you aint gonna git it back.....  how does it feel to be a lemming?  Learn.  Hitler failed to teach you.  We will.

Thu, 01/17/2013 - 13:13 | 3162752 Freddie
Freddie's picture

I bet you watch TV and Hollywood's crap.  The elites need good little serfs like you.

Thu, 01/17/2013 - 11:46 | 3162385 BrigstockBoy
BrigstockBoy's picture

Gross and El Erian playing good cop/bad cop just like the Fed...

Thu, 01/17/2013 - 12:18 | 3162525 Mr Nice Guy
Mr Nice Guy's picture

Logistically, wouldn't it make more sense to simply ship them one of those platinum coins?

Thu, 01/17/2013 - 12:23 | 3162547 Joe moneybags
Joe moneybags's picture

It's seven years hence.  Some journalist asks the Bundesbank, "By the way, did you ever get your gold from the U.S.?"

Answer, "Well, uh, I'm sure we did.  Someone would have said something if we didn't."

Journalist writes headline.."Bundesbank confirms all gold delivered."

Thu, 01/17/2013 - 12:27 | 3162559 ForWhomTheTollBuilds
ForWhomTheTollBuilds's picture

Classic modern finance con tactics.

 

First rob people blind, then call them crazy when they get suspicious. As they get closer to the truth tell them again that they are crazy, but that if they persist, they might be proven right which will only create an environment of distrust that will hurt themselves.

 

Yeah, better to let the finance bullys continue on their way.

Thu, 01/17/2013 - 14:14 | 3163079 ActionFive
ActionFive's picture

Yeah, get ready for gold/bullion ' bank stress tests'.

Everything is fine.

Thu, 01/17/2013 - 13:01 | 3162704 jomama
jomama's picture

let's not forget this whole story isn't even on the radar of 99% of the population.

Thu, 01/17/2013 - 13:05 | 3162716 Lmo Mutton
Lmo Mutton's picture

So we are NOT in the end game?
The game has been over and they are doing everything to make you think the game is still on.

Thu, 01/17/2013 - 13:09 | 3162737 Money 4 Nothing
Money 4 Nothing's picture

Will they take our cash instead? That would be one hell of a sight if Germany pulls ships into pier 38 in Downtown Lower Manhatten.  Their not going to ask please.

Thu, 01/17/2013 - 15:13 | 3163362 Bansters-in-my-...
Bansters-in-my- feces's picture

That bimbo from kitco's kooky news crew said in an article yesterday that is does not really matter if you are in possesion.

And shes not even blonde.

Jon really loves the smart ones around.

Thu, 01/17/2013 - 15:22 | 3163403 Bansters-in-my-...
Bansters-in-my- feces's picture

Ps on last comment.
Her name is Debbie Carlson.

Thu, 01/17/2013 - 15:39 | 3163471 silverserfer
silverserfer's picture

invade the Rothchilds compound and repatriate it back.

Thu, 01/17/2013 - 16:21 | 3163616 silverisgold
silverisgold's picture

I don't really think shipping this gold would be a problem. Governments move nuclear materials around all the time and don't seem to loose any....do they? Hmmmmm.

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