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A Year Later, The Bundesbank Has Repatriated Only 37 Tons Of Gold (Of 700 Total)

Tyler Durden's picture





 

Procuring physical gold seems to be a rather problematic and time-consuming process, as the Bundesbank is learning.

Recall that it was almost exactly one year ago in mid-January, when the German central bank, in a shocking development expressing the bank's lack of trust in its central banking peers, announced that it would proceed with the repatriation of 700 tons of gold held by its "partners" the New York Fed and the Banque de France, by the end of 2020.

Since we had posted numerous articles on the topic of German official gold just prior to this announcement, many of which speculated about its quality and existence, it seemed like a shocking confirmation that the most hawkish of European central banks was taking its commitment to hard-money so seriously, especially after just weeks prior it swore up and down it has confident about its gold where it currently was.

This is what we said at the time:

There is no need to explain why this is huge news (for those who have not followed our series on the concerns and issue plaguing German gold can catch up here, here, here, here, and certainly here) . At least no need for us to explain. Instead we will let the Bundesbank do the explanation. The following section is the answer provided by the Bundesbank itself in late October in response to the question why it does not move the gold back to Germany:

The reasons for storing gold reserves with foreign partner central banks are historical since, at the time, gold at these trading centres was transferred to the Bundesbank. To be more specific: in October 1951 the Bank deutscher Länder, the Bundesbank’s predecessor, purchased its first gold for DM 2.5 million; that was 529 kilograms at the time. By 1956, the gold reserves had risen to DM 6.2 billion, or 1,328 tonnes; upon its foundation in 1957, the Bundesbank took over these reserves. No further gold was added until the 1970s. During that entire period, we had nothing but the best of experiences with our partners in New York, London and Paris. There was never any doubt about the security of Germany’s gold. In future, we wish to continue to keep gold at international gold trading centres so that, when push comes to shove, we can have it available as a reserve asset as soon as possible. Gold stored in your home safe is not immediately available as collateral in case you need foreign currency. Take, for instance, the key role that the US dollar plays as a reserve currency in the global financial system. The gold held with the New York Fed can, in a crisis, be pledged with the Federal Reserve Bank as collateral against US dollar-denominated liquidity. Similar pound sterling liquidity could be obtained by pledging the gold that is held with the Bank of England.

And in case the above was not clear enough, below is the speech Buba's Andreas Dobret delivered to none other than NY Fed's Bill Dudley in early November:

Please let me also comment on the bizarre public discussion we are currently facing in Germany on the safety of our gold deposits outside Germany – a discussion which is driven by irrational fears.

 

In this context, I wish to warn against voluntarily adding fuel to the general sense of uncertainty among the German public in times like these by conducting a “phantom debate” on the safety of our gold reserves.

 

The arguments raised are not really convincing. And I am glad that this is common sense for most Germans. Following the statement by the President of the Federal Court of Auditors in Germany, the discussion is now likely to come to an end – and it should do so before it causes harm to the excellent relationship between the Bundesbank and the US Fed.

 

Throughout these sixty years, we have never encountered the slightest problem, let alone had any doubts concerning the credibility of the Fed [ZH may, and likely will, soon provide a few historical facts which will cast some serious doubts on this claim. Very serious doubts]. And for this, Bill, I would like to thank you personally. I am also grateful for your uncomplicated cooperation in so many matters. The Bundesbank will remain the Fed’s trusted partner in future, and we will continue to take advantage of the Fed’s services by storing some of our currency reserves as gold in New York.

Incidentally, what Zero Hedge did provide after this article, was factual evidence that the Buba's very much "trusted partner" had been skimming it on physical gold deliveries on at least one occasion, in "Exclusive: Bank Of England To The Fed: "No Indication Should, Of Course, Be Given To The Bundesbank..."

So we wonder: what changed in the three months between November and now, that has caused such a dramatic about face at the Bundesbank....

* * *

The question of Buba's relationship with other central banks still remains open, however one thing we have just learned is the pace at which the German Central Bank has been able to repatriate its gold. It would make a snail proud.

Yesterday Buba head Jens Weidmann told Bild that gold valued at €1.1 billion has been repatriated so far. Putting a weight to this number: to date the Bundesbank has received shipments of a paltry 37 tons of gold from its existing storage place in either New York or Paris to Germany: "The gold reserves of the country will be stored in Frankfurt because it has a special storage with the corresponding equipment,” said Carl-Ludwig Thiele, a Bundesbank board member. 

The repatriated amount over the course of all of 2013 represents just over 5% of the total stated target of 700 tons, and is well below the 87.5 tons that the Bundesbank would need to repatriate each year if it were to collected the 700 tons ratably ever year in the 8 year interval between 2013 and 2020.

So the question begs: since the price of gold has tumbled in 2013 (according to many driven in part by the Buba's own demand, which would make procuring gold in the open market for the US and French central banks that much easier for subsequent dispatch to Frankfurt) and one would assume there would be many more sellers than buyers of physical, why would the Bundesbank not be able to obtain a far greater share of the gold? Unless, of course, neither New York nor Paris actually have free, unencumbered physical gold in their possession -with most of it leased out to various even closer "partners" - and are scrambling to procure as much physical as they can find at the new low, low prices (thank you paper gold ETF dumping).

However, a snag seems to have emerged: unlike in the "west" where momentum is the only driver of "value", buyers out of China (and of course India, especially when one considers the black market attempt to circumvent the Bank of India's capital controls on gold imports) are hoarding as much physical gold as they can get. Could it be that the Bundesbank is unable to repatriate more just because China is already buying up every marginal tons of physical gold in the market, and is making physical gold purchases by the Fed next to impossible?

In other words, is China now holding Germany's gold hostage, and if so when and what price would it release it to the New York Fed and the Banque de France? One look at just the pace of imports by China reveals that if indeed this is the case, then there may be a few snags in this hardly best laid plan of central bankers and men.

 

 


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Tue, 12/24/2013 - 13:13 | Link to Comment VD
VD's picture

imagine if one paid the IRS thugz taxes at similar 'repatriation' rate¿¿¿

Tue, 12/24/2013 - 13:20 | Link to Comment BoNeSxxx
BoNeSxxx's picture

I hope the Annunaki have learned to speak Chinese during their hiatus... they're gonna need it.

Tue, 12/24/2013 - 13:25 | Link to Comment giggler321
giggler321's picture

So 37ton isn't enough, 700/(2020-2013)=100tons.  So they should have got back 100tons pa.  It seems someone's a little short even at $1200US/oz

Tue, 12/24/2013 - 13:34 | Link to Comment Pseudonymous
Pseudonymous's picture

Germany lost most of its gold in a very unfortunate choice of custodian accident...
To everyone thinking of holding paper gold: don't be like Germany. One should be responsible even in the event of losing their money. If you lose your gold in an unforeseen boating accident at least then you are not funding criminal behavior in the process. On the other hand, if you lose your money to a thief or a conman, then not only are you out of money, but you are doomed to suffer again in the future when the thieves or conmen come back better prepared and more motivated, looking for more.

Tue, 12/24/2013 - 13:42 | Link to Comment BaBaBouy
BaBaBouy's picture

TYLER, Don't You Know The FED ET AL Are Empyting The GLD Etf As Fast As They Can!!!

Give TheM A Break Will You,

The Germ's Will Get Their GOLD By At Least 2077...

Tue, 12/24/2013 - 13:48 | Link to Comment Buckaroo Banzai
Buckaroo Banzai's picture

In Olden Tymes, when one had difficulty procuring something at a given price, the price for that thing would rise accordingly, until the "market cleared" (an ancient Term of Art).

Now, of course, we have much more modern and scientific methods of allocating resources.

Tue, 12/24/2013 - 13:56 | Link to Comment kreso
kreso's picture

If I would expect DB to default on its CDOs, wouldn't I prolong the delivery of physical gold which could serve as a colateral?

Kind Regards,

Tue, 12/24/2013 - 14:08 | Link to Comment zaphod
zaphod's picture

I've said it before here and I'll say it again.

Germany was allowed/forced to store their gold with the US, England and France after WWII and given paper certificates to enable trade only. They essentially lost all real claims to that gold when they lost the war. There was never an expectation that the gold would be returned and they most definitely will not receive it back.

The slow repatriation is just to mask over this fact, Germany will receive a token amount slowly over time, that is all.

Tue, 12/24/2013 - 14:12 | Link to Comment nope-1004
nope-1004's picture

So exactly how does the "free gold" theory fit in with nations or sovereigns having their gold stolen / re re re rehypothecated?

Doesn't' Freegold assume everyone possesses what is rightfully theirs?

 

Tue, 12/24/2013 - 14:17 | Link to Comment CH1
CH1's picture

It takes time to unwind all those leases and re-hypothecations!!

Tue, 12/24/2013 - 15:53 | Link to Comment negative rates
negative rates's picture

It was lost in the 50's and the only alternative was the paper chase.

Tue, 12/24/2013 - 17:16 | Link to Comment krispkritter
krispkritter's picture

I had some fun with this when it first appeared here:  

Hitler Learns German Gold is Tungsten
Tue, 12/24/2013 - 15:22 | Link to Comment the question
the question's picture

"To be more specific: in October 1951 the Bank deutscher Länder, the Bundesbank’s predecessor, purchased its first gold for DM 2.5 million"

So I have to ask, if gold was first purchased in 1951 (after the war), would they still be required to loan it over to France and the US? What am I missing?

Wed, 12/25/2013 - 02:50 | Link to Comment runswithscissors
runswithscissors's picture

Das ist alles...geld macht nicht

 

Sun, 01/19/2014 - 09:08 | Link to Comment Cap Matifou
Cap Matifou's picture

The current german gold accounts have nothing to to with any war, they were cumulated in the economic miracle years of the 50 and 60s.

Tue, 12/24/2013 - 20:42 | Link to Comment midtowng
midtowng's picture

Not to worry. I'm sure they can convince Germany to take GLD shares instead.

Tue, 12/24/2013 - 13:24 | Link to Comment PR Guy
PR Guy's picture

 

 

This is what happens 'When Big Projects Go Bad' ;-)

 

http://www.youtube.com/watch?v=X34ad1eJ2Bk

 

Tue, 12/24/2013 - 18:11 | Link to Comment DavidPierre
DavidPierre's picture
Conspiracy of the Titanic: First staged 9 11

http://www.youtube.com/watch?v=iTCGoJYhSUc

J.P.Morgan cancelled his trip on the Titanic (or should I say the Olympic?)

Kinda like Lucky Larry Silverstien having a doctors appointment the morning of 911.

Tue, 12/24/2013 - 13:49 | Link to Comment thunderchief
thunderchief's picture

So Germany's gold is in custodian with the worlds biggest paper manipulator and hater of gold, the USA.
Where is your gold Germany?
Go Hang!

Tue, 12/24/2013 - 13:17 | Link to Comment GVB
GVB's picture

Dear Mr. Weidmann. Merry christmas. Ben B.

Tue, 12/24/2013 - 13:19 | Link to Comment Xibalba
Xibalba's picture

Good thing the price keeps going down.  Sooner or later someone will panic sell 700 tons of physical and bail out the system...or so the logic goes. 

Tue, 12/24/2013 - 13:21 | Link to Comment CheapBastard
CheapBastard's picture

"Fool me once...."

GWB famous quote:

 

http://www.youtube.com/watch?v=eKgPY1adc0A

Tue, 12/24/2013 - 13:48 | Link to Comment Colonel Klink
Colonel Klink's picture

Idiot by design!

Tue, 12/24/2013 - 13:38 | Link to Comment Antifaschistische
Antifaschistische's picture

and the Chinese raise you a ton..

http://demonocracy.info/infographics/world/gold/images/demonocracy-gold-1_ton.jpg

but I have a question I'm sure some ZH'er fully understands.   These freaking "We Buy Gold" retail operations have popped up all over the place in the last 4 years.  There's even one in my grocery store.   They buy....they do NOT sell.

Where is this gold going?  What money is behind all these operations to vacuum up American gold from the crevices of society?   Is it the Chinese or the Fed?  Or...someone else?

Have Americans been dropped into the giant economic sluice box?  We don't want your dollars..but we'll take your gold thank you?

Tue, 12/24/2013 - 14:33 | Link to Comment jaxville
jaxville's picture

  I have been operating a gold and silver exchange for ten years now. I used to refine our scrap purchases and sell the resulting pure gold to goldsmiths. As our volume of scrap increased, we received far more than than we could sell to local goldsmiths. For the last eight or so years we have shipped our scrap to a refinery for processing. The gold we provide is ultimately turned into gold coins or bars at the mint.

 There are now "so called" refineries springing up that do little more than pour scrap gold into a dore bar then sell it to a wholesaler. XRF technology allows for accurate assays of such bars to be done quickly and without loss of material. Wholesalers can generally provide enough material to meet the minimum threshold amounts that major refineries will purchase. In the case of US scrap, much of it is being exported from Florida and sold to the Rand Refinery in South Afrika. The Rand Refinery, like most European refineries; is producing fine gold kilobars for the Asian market. They also produce the Krugerrands which are in great demand in Europe. The Rand refinery has a great deal of excess capacity as South Afrikan gold production has declined sharply.

 Many of the cash for gold operations you are now seeing will soon be going out of business. The low hanging fruit has been picked and regions with shops such as mine are forcing remaining ones to pay higher prices to the public. Lower volumes and higher buy prices are leading to many operators to close or focus on other things as margins are narrowed.

   My shop is in an mid sized city of about 100,000. Although our volumes are down we still ship a considerable amount of scrap to the refinery. We do sell bullion coins and bars and our sales still exceed our purchases by well over threefold. I am guessing you can extrapolate that to most other centres and will find that there are more than enough local buyers to offset what the community is loosing to scrap buyers. Nearly every city will have a coin dealer or two that offer bullion product. There are also the internet venders although they, like the local coin dealers; rarely have visible outdoor advertising the fact they sell glod bullion.

 

 

 

Tue, 12/24/2013 - 16:39 | Link to Comment Buckaroo Banzai
Buckaroo Banzai's picture

Thanks for the insightful commentary. When you say "We do sell bullion coins and bars and our sales still exceed our purchases by well over threefold" does that mean that even during the peak of the "Cash4gold" craze, you were selling more coins to customers than scrap you were buying? From all the advertising that the "Cash for gold" guys did, one got the impression that there was more scrap being bought from the public than coins getting sold to the public. What you wrote implies the opposite.

Tue, 12/24/2013 - 18:52 | Link to Comment jaxville
jaxville's picture

The issue is one of margins. Our scrap recovery has about an 18% margin whereas bullion sales is generally about 2%. Bullion sales have always exceeded scrap purchases. Because of the higher margins in scrap recovery it is what most newer vendors focus on. When you consider that some gold buyers pay as little as 33% of melt you can see why they don't want to do anything else. The lower margins in bullion sales mean less capital expendenture on advertising. Even though we only make about 2% on gold sales, our volumes make it a profitable trade.

Tue, 12/24/2013 - 18:20 | Link to Comment DavidPierre
DavidPierre's picture

Jack:

Great info.

Merry Christmas to you and yours !

DB

 

Tue, 12/24/2013 - 18:53 | Link to Comment jaxville
jaxville's picture

Merry Christmas David, to you and all the folks here at Zero Hedge

Tue, 12/24/2013 - 18:21 | Link to Comment silvermail
silvermail's picture

XRF technology NOT allows for accurate assays of any bars to be done quickly and without loss of material.

XRF technology allows for accurate assays only the surface of bars to a depth up to 8-10 microns.

Tue, 12/24/2013 - 18:58 | Link to Comment jaxville
jaxville's picture

If you are the one pouring the bar and know that it is a homogenous mix, XRF units are the cat's ass for quick and accurate tests. We have other tests as well for buying bullion across our counter. Counterfeit detection requires a plethora of tests especially if you don't want to destroy or damage the item being tested.

Tue, 12/24/2013 - 21:09 | Link to Comment silvermail
silvermail's picture

@ jaxville

Yes, I understand what you mean. Ultrasonic Tester of course will detects tungsten inside gold bar.
But I would like to ask you for advice:
How to check gold bullion or gold coin in the package without destroying this package?
I mean such a standard plastic package, what have  the certificate inside:
http://x2t.com/270991
http://x2t.com/270992

You open the package for tests of such products?
If yes, then how after this, do you sell these products with damaged packaging?

Thu, 12/26/2013 - 03:42 | Link to Comment jaxville
jaxville's picture

  Thats a tuff one. If we have an item in stock we can visually compare it with what is being offered, that will sometimes suffice. Generally we make an offer but is pending authenticating the bar or coin by removing it from the packaging. If the client doesn't like that, he or she can call it a day.A lot can be hidden by packaging, especially on slabbed coins.

 

  My suggestion is to to be extremely knowledgable about the item you are considering. Most counterfeits can be detected by a visual examination. If you have any doubts or concerns about the product, don't buy it unless you can closely examine it first. As a dealer I would have no qualms about a customer removing a product from packaging as long as he or she had agreed to buy it once authenticated.

 

  We have no problem selling a bar that has been removed from it's packaging.. Our clients know that we have closely scrutinized it and that it is authentic. As counterfeiting becomes more ubiquitous, any dealer buying your bar will likely want to remove it from it's packaging. Graded coins are a little more problematic as a goodly portion of their value is based on the grade assigned on the packaging and there is no guarantee it will get the same grade when resubmited.

 

 

Tue, 12/24/2013 - 13:20 | Link to Comment TheAntiGov
TheAntiGov's picture

Good luck Germany in getting your gold before the system collapses.

Tue, 12/24/2013 - 13:21 | Link to Comment orangegeek
orangegeek's picture

gold looks poised for a bounce - support at 1175

 

http://bullandbearmash.com/chart/spot-gold-daily-falls-closer-1175-suppo...

Tue, 12/24/2013 - 13:42 | Link to Comment JLee2027
JLee2027's picture

Paper Gold doesn't bounce too well.

Tue, 12/24/2013 - 13:22 | Link to Comment PR Guy
PR Guy's picture

 

 

This is what happens 'When Big Projects Go Bad' ;-)

 

http://www.youtube.com/watch?v=X34ad1eJ2Bk

 

Tue, 12/24/2013 - 13:24 | Link to Comment 22winmag
22winmag's picture

Lie down with dogs... get fleas.

Tue, 12/24/2013 - 13:29 | Link to Comment Soda Popinski
Soda Popinski's picture

Everyone knows HSBC is having the gold protected by Smaug in Erabor.  The German dwarves are trying to reclaim it.  They are up against fire breathing dragon bankers.  Good luck getting your gold back Deutschland.

Tue, 12/24/2013 - 13:27 | Link to Comment D7z
D7z's picture

Wo ist unser Gold?

Guess most of it is long gone(sold) anyway...

Tue, 12/24/2013 - 16:07 | Link to Comment Colonel Klink
Colonel Klink's picture

It's been Rehymiepothicated 92 times over.  Good luck getting your phyzz back!

I believe Clinton shystered China out of several billion dollars of physical silver, only to repay them with paper.

EDIT:  Since everyone like links for assertions: http://jessescrossroadscafe.blogspot.com/2011/01/explanation-of-china-si...

Fri, 12/27/2013 - 16:17 | Link to Comment MeelionDollerBogus
Tue, 12/24/2013 - 13:34 | Link to Comment Frank N. Beans
Frank N. Beans's picture

"a paltry 37 tons of gold..."

I mean what can one do with 37 tons of gold, right?

 

Tue, 12/24/2013 - 13:35 | Link to Comment Xibalba
Xibalba's picture

Not issue a backed, stable, currency.  If that's what you mean. 

Tue, 12/24/2013 - 13:55 | Link to Comment Panafrican Funk...
Panafrican Funktron Robot's picture

It would actually be very easy to have a currency backed by 37 tonnes of gold, even if the underlying economy was, say, $14 trillion in USD value.  Simply set the USD exchange value of that gold at $378 billion per tonne.  

"Yeah, but the price is $1200/oz, this wouldn't work!!!"

No, it's not, and yes it would, dipshit.

Tue, 12/24/2013 - 13:38 | Link to Comment Yancey Ward
Yancey Ward's picture

You guys- there are real technical issues in moving 700 tons of material in less than 10 years from New York and Paris to Frankfurt.  Sheesh!!!

Tue, 12/24/2013 - 15:10 | Link to Comment Emergency Ward
Emergency Ward's picture

"Lost at sea."

Tue, 12/24/2013 - 18:35 | Link to Comment icanhasbailout
icanhasbailout's picture

in a boating accident... just like all my gold and guns too... very common problem I hear

Tue, 12/24/2013 - 13:38 | Link to Comment Panafrican Funk...
Panafrican Funktron Robot's picture

If you believe the official explanations of how "eligible" and "registered" gold works for the Comex (eligible = stored at the depository facility, but not available for physical settlement; registered = stored at the depository facility, and available for physical settlement), it would stand to reason that the sharp reduction in registered stocks is due purely to price dislocation, ie., at current spot price, the big holders of physical gold are unwilling to part with said gold, under the expectation of a significantly better spot price in the future.  

It is worth noting that the registered stocks are at a level where if a mere $100 mln is deployed with a demand of physical settlement, the Comex gold market would break.  That is a pretty miniscule amount.

Main point:  even if you believe the mainstream explanations regarding the gold futures market, the Comex gold exchange is on the verge of default, because the price is bullshit.  

Tue, 12/24/2013 - 13:42 | Link to Comment Xibalba
Xibalba's picture

"I'm confused." - Ben Bernanke

Tue, 12/24/2013 - 13:49 | Link to Comment Colonel Klink
Colonel Klink's picture

It's tradition of Central banks.  Baffle'm with bullshit!

Tue, 12/24/2013 - 13:40 | Link to Comment GoatHerder
GoatHerder's picture

I bet the NSA has a photo of Putzfrau Merkel making love to a apple strudel. Also, let me be the first to say Gold Bitchezzzzzz!

Tue, 12/24/2013 - 13:38 | Link to Comment Silverhog
Silverhog's picture

They will be shipping masonary bricks sprayed gold before the end of 2014. 

Tue, 12/24/2013 - 13:41 | Link to Comment JLee2027
JLee2027's picture

Bet they get even less in 2014.

Tue, 12/24/2013 - 13:39 | Link to Comment SKY85hawk
SKY85hawk's picture

700 tons of gold is about $27 billion.

About 32% of one month's QE.

Wha' happen'd?

 

Tue, 12/24/2013 - 15:27 | Link to Comment Hulk
Hulk's picture

The gold is gone, thats what happened. And it will be one for the history books when they have to admit that fact...

Tue, 12/24/2013 - 21:32 | Link to Comment drdolittle
drdolittle's picture

You guys are gonna make me cream in my pants I'm so excited

Tue, 12/24/2013 - 13:43 | Link to Comment GoatHerder
GoatHerder's picture

Just in case I don't have the chance with the Holiday, Merry Christmas Bitchez!

Tue, 12/24/2013 - 13:42 | Link to Comment squid427
squid427's picture

How does the saying go about nothing is confirmed untill it is officially denied?

Tue, 12/24/2013 - 13:46 | Link to Comment Yancey Ward
Yancey Ward's picture

I mean, a typical cargo ship can only carry like 50 times that amount of weight, so it is no real surprise it takes 10 years or more to move Germany's gold.  You are talking about about 4-5 747-400 trips across the Atlantic, so I am not surprised that Germany might never actually get 700 tons moved.

Tue, 12/24/2013 - 18:10 | Link to Comment Papasmurf
Papasmurf's picture

You can't ship gold by boat, it causes shipwrecks.  You can't fly more than 1kg per passenger on a 747.

Tue, 12/24/2013 - 13:48 | Link to Comment Frank N. Beans
Frank N. Beans's picture

Is China buying its gold FROM Hong Kong? Or is HK merely the only conduit it can use to purchase gold from other countries? 

Tue, 12/24/2013 - 14:15 | Link to Comment jim249
jim249's picture

HK is a conduit.

Tue, 12/24/2013 - 15:25 | Link to Comment Frank N. Beans
Frank N. Beans's picture

danke

Tue, 12/24/2013 - 13:52 | Link to Comment AgShaman
AgShaman's picture

Germany: 7 years ago....it seemed likely we would get our gold

hahaha. good luck with the "seven year plan"

Tue, 12/24/2013 - 14:02 | Link to Comment tony bonn
tony bonn's picture

as an occasional i-told-you-so, i did indeed tell you so: germany will not see anywhere near 700 tons of gold EVER; for some of you, EVAH....db is to blame for much of the theft because they are criminals still collaborating with the nazis in nyc and london...

as for germany's 3700 tons or whatever the number is, it too is gone with the wind, pissed away in a giant nazifest of theft by nyc banksters, bill clinton, the bush crime syndicate, and their many hangers-on. the german's are fucked fucked fucked and they can't do a fucking thing about it.

or can they? they actually are getting their revenge. it will be slow and grinding but in the fullness of time, they will repudiate their nazi overlords by getting into bed with the chicoms and ruscoms.

Tue, 12/24/2013 - 14:05 | Link to Comment geewhiz
geewhiz's picture

By my calculations 700 US tons of gold is roughly 25 billion USD at $1200 per troy oz. Thats 10 days of printed Fed toilet paper while the scam is still good. They could give Germany the cash and tell them to go buy the gold before everyone wakes up. Clearly they don't intend to.

Tue, 12/24/2013 - 14:40 | Link to Comment Conax
Conax's picture

If Germany placed the order for $25 bil in phyzz, it wouldn't be a paltry $1200 oz anymore, it would overturn the paper applecart.

That's why they would never do it. All these govs are protecting the status quo, regardless of their public posturings.  The German people want their gold, the German PTB want things to continue, with them comfortably in the driver's seat.

Tue, 12/24/2013 - 15:00 | Link to Comment Winston Churchill
Winston Churchill's picture

Because : "Gold is money ,and everything else is credit".

Did you know the IMF only accepts gold in repayment of fiat loans ?

I would dearly love to see  clauses in one of those promissary notes.

Ben may not understand gold, but the IMFseems to.

Tue, 12/24/2013 - 15:28 | Link to Comment Colonel Klink
Colonel Klink's picture

And yet the IMF is comprised of central banks around the world.  Hypocritcal much!

Tue, 12/24/2013 - 15:29 | Link to Comment Hulk
Hulk's picture

just goes to show you the huge difference between worthless paper and the real tangible...

Tue, 12/24/2013 - 17:22 | Link to Comment css1971
css1971's picture

Apparently US dollars and Germany's gold are not exactly fungible.

Tue, 12/24/2013 - 14:19 | Link to Comment Fix-ItSilly
Fix-ItSilly's picture

The Bundestag needs to show ownership of "its" gold.

 

The Bundesbank only needs access to USD - and it now has it via the ECB-FRB swap line.

 

And if ZH can't present 2H 2014 newspaper articles drumming up public oversight for its supposed gold hoard, the need to transfer gold was last year's news.

Tue, 12/24/2013 - 17:59 | Link to Comment flyingpigg
flyingpigg's picture

Fix-it, you could be right. There could be another reason:

"Gold stored in your home safe is not immediately available as collateral in case you need foreign currency. Take, for instance, the key role that the US dollar plays as a reserve currency in the global financial system. The gold held with the New York Fed can, in a crisis, be pledged with the Federal Reserve Bank as collateral against US dollar-denominated liquidity."

The Germans might not believe anymore in the USD as reserve currency so no need anymore to keep gold at the NY Fed...

Tue, 12/24/2013 - 14:21 | Link to Comment Peter Pan
Peter Pan's picture

It brought 37 tonnes in but did it send more than that out?
By the way has anyone seen Gadaffi's gold?
Surely the NSA knows where it is.
After all if you can't track something that valuable then wht is the point of the NSA?

Tue, 12/24/2013 - 16:40 | Link to Comment Buckaroo Banzai
Buckaroo Banzai's picture

"Gaddafi's gold? I'm sure it's around here somewhere. Probably left it in my other pants."

Tue, 12/24/2013 - 14:29 | Link to Comment Sufiy
Sufiy's picture


Jesse: Record COMEX Gold Claims Per Deliverable Ounce of Gold at 92 to 1

Jesse reports that we have another All-Time-High leverage at COMEX with 92 Owners per one once of Gold.

http://sufiy.blogspot.co.uk/2013/12/jesse-comex-gold-claims-per-delivera...

 


Jesse: Record COMEX Gold Claims Per Deliverable Ounce at 79 to 1 GLD, MUX, TNR.v, GDX

 
  "Jesse reports that the Game Of Musial Chairs in the Western Fractional Gold Reserve System is getting into the new stage with the record level of leverage. Now report from Bloomberg can be put into another perspective." 


  Bloomberg: London Gold Vaults Are Virtually Empty GLD, MUX, TNR.v, GDX


Bloomberg quite suddenly provides some really interesting information about the state of the gold market and ongoing manipulations around it these days. Could the reports about JPMorgan being Net Long Gold now be correct in the end?

Tue, 12/24/2013 - 14:29 | Link to Comment Downtoolong
Downtoolong's picture

Don’t worry Bundesbank, you’ll get your gold back as soon as JPM un-rehypothecates it and renegotiates the collateralized swap option on it, and…….

P.S. Their counterparties on those deals are the same ones who negotiated similar OTC derivative agreements with you.

Fri, 12/27/2013 - 15:56 | Link to Comment MeelionDollerBogus
MeelionDollerBogus's picture
And then it will be delivered from Fort Knox with genuine ACME serial numbers.
Tue, 12/24/2013 - 14:31 | Link to Comment CPL
CPL's picture

1657876.2 oz of gold from 37 tonnes of gold

Price per ounce.  1200

Price per barrel averaged between WTI and Brent. 105ish

German oil consumption.  54,920 per day (2012 estimates)

ounces to ppb price:  11.42

 

If germany leaves the station with the above listed amount of gold, how long can Germany keep affording oil with the given varibles of hard PM's given that retail/distributor profit and government tax levies aren't included in the ppb price.  With the price being manipulated at the same time of course. 

Answer: Not long before owning a Benz is the same as owning a really expensive boat anchor in a shrinking market of people that can afford the product and caring less and less about who built it.

Tue, 12/24/2013 - 14:40 | Link to Comment Kirk2NCC1701
Kirk2NCC1701's picture

Clearly Germany needs to revise its Immigration Policy, to attract more Indians.  Especially those who like to travel to Dubai or UAE.

They're missing out on a ... 'golden' opportunity, but at least they may get more gold in having attracted the Russian-Jewish oil tycoon, Mikhail Khordokovsky.  After his release from Russian jail (for tax evasion), he was flown on a private jet to Berlin, where he was personally greeting by political VIPs (e.g. Hans-Dietrich Genscher).  What a real 'Mensch', that Genscher guy must be, right?

http://rt.com/news/khodorkovsky-pardon-release-prison-556/

/s (it never hurts to add the Sarc tag, for those who don't get my cheekiness/irony)

Tue, 12/24/2013 - 14:33 | Link to Comment Al Huxley
Al Huxley's picture

They should talk to Keith Weiner at Monetary Metals.  I was reading his article yesterday ( http://news.goldseek.com/GoldSeek/1387808100.php ) and he says

By the way, for those inclined to think that this is only the price of “paper” gold or silver, we have as much gold metal as you would care to buy at $1900 or $1600 or $1300, or whatever the demand for physical metal is supposed to be.

'As much gold metal as you would care to buy' seems pretty open ended, so presumably the Bundesbank could just go knock on Keith's door, pick up their remaining 663  tons, and then get a cash settlement for the balance the Fed owes them.  I would think for a large volume sale like that Keith could give a discount and let it go for say 1275, or at least 1300 as he's committed to in writing, so the Bundesbank, for a small premium over spot would be able to get their gold and completely circumvent the supposed supply shortage, as apparently the guys at Monetary Metals are prepared to supply the entire physical market.

 

EDIT:  That might be a good option for China as well - I think Monetary Metals is selling for a lower premium than they're getting from the Bullion Banks.

Tue, 12/24/2013 - 14:51 | Link to Comment Seasmoke
Seasmoke's picture

Throw in Free Shipping and its a steal.

Tue, 12/24/2013 - 14:59 | Link to Comment NoTTD
NoTTD's picture

Might be good to check to see if the BuBa values their AU at some arbitrary rate, such as the US' $35/oz.   Tonnage might change dramatically.  Or not.

Tue, 12/24/2013 - 15:54 | Link to Comment y3maxx
y3maxx's picture

700 tons of gold are immediately available....just "tungstenized" a bit

Tue, 12/24/2013 - 16:20 | Link to Comment Stuck on Zero
Stuck on Zero's picture

Why doesn't Germany forward sell its gold on the market and then buy it openly on the exchanges?  They'd get it back faster that way. 

 

Tue, 12/24/2013 - 16:44 | Link to Comment Clowns on Acid
Clowns on Acid's picture

China is not frightend by the moneylenders....

Tue, 12/24/2013 - 16:55 | Link to Comment keninla
keninla's picture

I am quite certain that the FED thought Germany wanted to "repudiate" gold instead of repatriate. It all makes sense now.

 

Tue, 12/24/2013 - 18:02 | Link to Comment KingTut
KingTut's picture

With the amount of gold easily shipped to China (but they are paying for it), there is something not quite right about this germany story.  It is possible that the US Fed or its agents such as JPM or GS, convnced the German Bundesbank to lease their gold out.  So the reason the gold is so slow going home is that it's still on loan.  When the leases expire, they'll get their gold back. Of course, aftere 6 more years the price may be a little high, making the return problematic.

I think the Germans knew all about it, and agreed to the leasing program.  Now, they want their gold back, but they don't want the German people to know how stupid they were.

Tue, 12/24/2013 - 18:56 | Link to Comment AgentScruffy
AgentScruffy's picture

Good point. Germany fleeced Germany.

Tue, 12/24/2013 - 21:26 | Link to Comment honestann
honestann's picture

The federal reserve no longer has the 700 tons of German gold they claim to be holding.  They also do not have the other 2500 tons of German gold they also claim to be holding (that Germany has not yet asked for).

The entire physical gold market is an absolute, complete, utter fraud.  The gold that most governments supposedly hold or own... is gone.  Gone to Saudis.  Gone to China.  Gone to India.  Gone, gone, gone.

If the German government had any brains (or self-protection instinct) whatsoever, they would demand all their gold be returned immediately (within 3 months).  That is a perfectly reasonable request.  After all, it is their gold.

What would happen if they did demand return of the 3000+ tons of gold the predators at the federal reserve supposedly hold for them?

First, the federal reserve would need to acquire 3000 tons of told, since they don't have it.  Perhaps 500 to 1000 tons they could steal from GLD or other large financial corporations in the USA.  The other 2000 to 2500 tons they'd need to buy in the open market.

Can anyone spell $5000 per ounce gold?

$10,000 per ounce?

$25,000 per ounce?

Of course, a price spike to $25,000 per ounce would end and collapse back to $5000 to $10000 once they got the 2500 tons for Germany.  Unless everyone else demands their gold back, which is quite likely (absent threats of immediate invasion or nuking).

Nobody knows exactly when this charade of musical chair of gold will end, but it certainly won't be more than a few years, and might be as soon as s few months.

HOLD YOUR PHYSICAL.
HIDE YOUR PHYSICAL.

Wed, 12/25/2013 - 06:28 | Link to Comment JimmyRainbow
JimmyRainbow's picture

news in germany 100 tons in headline,

75 tons in text.

started with 300 tons beginning of shipment in 201x?

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