Italy May Have Over 1,000 Tonnes Of Gold At The New York Fed

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Submitted by Gold Core, Written by Ronan Manly

Italy May Have Over 1,000 Tonnes Of Gold At The New York Fed

Italy’s central bank, the Banca d’Italia, has recently published an important document detailing the storage locations and composition of the country’s gold reserves. The document confirms that Italy’s gold is held across four vault locations, three of which are outside Italy.

This is a significant announcement given that the Banca d’Italia is the world’s third largest official holder of gold after the U.S. and Germany. Italy officially holds 2,451.8 tonnes of gold, worth more than €72 billion (US$ 100 billion) at current market prices [1].

In the detailed three page report focusing exclusively on its gold reserves (and only published in Italian), the Banca d’Italia reveals that 1,199.4 tonnes, or nearly half the total, is held in the Bank’s own vaults under its Palazzo Koch headquarters on Via Nazionale in Rome, while most of the other half is stored in the Federal Reserve Bank gold vault in New York. The report also states that smaller amounts are stored at the Bank of England in London, and at the vaults of the Swiss National Bank in Bern, Switzerland.

The Gold in Rome

Of the 1,199.4 tonnes held in Rome, 1,195.3 tonnes are in the form of gold bars, with 4.1 tonnes held as gold coins (871,713 coins). There are 95,493 bars in the Rome vault, most of which are the standard trapezoidal shaped bars, however the holdings also include brick shaped U.S. Assay Office bars produced by the U.S. Assay Office, and another bar type which the Bank d’Italia refers to as ‘panetto’ (or loaf) shaped 'English' bars.
 
Like other major European central banks, the Banca d’Italia’s gold reserves were mainly accumulated during the late 1950s and early 1960s. Although Italy was already an important official gold holder during the first half of the 20th century, it still only held 402 tonnes of gold as of 1957. However, from 1958 until the late 1960s, the country’s gold reserves increased nearly 600% to exceed 2,560 tonnes by 1970[2].
 
Since 1970, Italy’s gold holdings have remained fairly constant, although at times some of the gold has been used in various financial transactions such as gold collateral against a German loan during the 1970s, and as contributions to the European Monetary Cooperation Fund (EMCF) and more recently to the European Central Bank (ECB).
 
The RAI Broadcast, the BIS and Bern

While the report from the Banca d’Italia appears to be the first official written confirmation that documents the exact storage sites of its gold reserves, the four storage locations were previously confirmed to Italian TV station RAI in 2010 when an RAI presenter and crew were allowed to film a report from inside the Bank’s gold vaults in Rome.
 
In the RAI broadcast for an episode of ‘Passaggio a Nord Ovest’, the presenter Alberto Angela states that in addition to Rome, the Italian gold is stored at the Federal Reserve Bank in New York, the Bank of England in London, and at the Bank for International Settlements (BIS) in Switzerland. The reporter uses the exact words “Banca dei Regolamenti Internazionali”.
 
The BIS connection was also confirmed in August 2009, when Italian newspaper “La Repubblica” published an article about Italy’s gold, stating that it was held in Rome, at the Federal Reserve in New York, in the vaults of the the Bank of England, and in the ‘vaults’ of the BIS in Basel.
 
This apparent contradiction between, on the one hand, the RAI and La Repubblica, who both state that some of the Italian gold is stored with the BIS in Switzerland, and on the other hand, the Banca d’Italia’s own document which states that its gold in Switzerland is stored at the Swiss National Bank (SNB) in Bern, is not really a contradiction since the BIS does not have its own gold storage facilities in Switzerland. The BIS simply uses the SNB’s gold vaults in Bern.
 
The BIS confirms this fact on its web site, under foreign exchange and gold services, where it states that it offers its clients “safekeeping and settlements facilities available loco London, Bern or New York”.[3] The term loco refers to settlement location for precious metals transactions.
 
By confirming that it stores gold at the Swiss National Bank in Bern, the Banca d’Italia has also inadvertently confirmed that the Swiss National Bank’s gold vaults are located in Bern. While this was generally known, the SNB currently will not confirm this fact publically and does not go beyond saying that it stores its own gold “domestically and internationally” in “decentralised” locations.[4]
 
However, Bern based Swiss newspaper “Der Bund” published an article in 2008 stating that the SNB’s gold vaults are in Bern, specifically underneath the Bundesplatz square which is adjacent to the SNB’s headquarters at No. 1 Bundsplatz. The SNB has two headquarters, one in Bern, the other in Zurich.
 
So it appears that the Italian gold in Switzerland is on deposit with the BIS (either earmarked or as a sight deposit) and is, at the same time, stored in Bern at the SNB vaults. Therefore the RAI and La Repubblica reports and the Banca d’Italia report are most likely both all in agreement, since they are merely saying the same thing, just in different ways. Another possibility is that the BIS sight deposit was converted back to earmarked gold in the SNB vault sometime since the 2010 RAI broadcast.
 
The reason for the confusion is because the Banca d’Italia will not confirm any of these details about how their gold in Bern is held, and they stated last week that they cannot comment beyond what is published in their April document.
 
Some of the details in the Bank’s gold reserve document were also confirmed a week prior to its publication when three Italian senators from Beppe Grillo’s political party Movimento 5 Stelle (Five Star Movement), namely, the party treasurer Giuseppe Vacciano, Andrea Cioffi and Francesco Molinari, visited the Rome vault on 31st March 2014.
 
The senators’ report states that as well as the 1,199.4 tonnes of gold held in Rome, “the remainder is mostly deposited at the Federal Reserve”, but also at the Bank of England and at “la Banca Centrale Svizzera” (which is the Swiss National Bank). The senators also reported that “For confidentiality reasons we were not notified of the exact extent of the deposits in different countries”.
 
Italian Gold in New York

As per the senators’ experience, the Banca d’Italia document does not specify how much of the Italian gold is held in New York, London and Bern, beyond stating that most of the gold that is not stored in Rome is stored in New York. However, the document does state that “the bulk” of foreign stored gold is in New York with “contingents of smaller size” located in London and Bern, so essentially it implies that the London and Bern holdings are not very large.
 
Of the 1,252.4 tonnes not in Rome, technically, a majority of this figure is anything greater than 626.2 tonnes. So with a simple calculation, there is at least 626.2 tonnes of Italian gold in New York.  But given that the “bulk” of 1,252.4 tonnes is in New York as the Bank’s document implies, and that “most of the remainder” not in Rome is in New York as the senator’s comments imply, then there could be anywhere up to between 1,000 tonnes and 1,200 tonnes of Italian gold in the FRB in New York.
 
In fact, 522 tonnes of this Italian gold that was earmarked at the Federal Reserve in New York in September 1974 was used as gold collateral for the Bundesbank loan to Italy during the first gold loan to Italy between 1974 and 1976. This collateral rose to 543 tonnes between 1976 and 1978.
 
London – The Bank of England

It is possible using historical data and records of Italian gold movements to estimate how much, or how little, Italian gold may be in London.  
 
It would appear that the Banca d’Italia does not hold very large amounts of gold in London. During the late 1960s, mainly between 1966 and 1968, the Banca d’Italia moved most of their gold that was stored at the Bank of England back to Italy. Regular shipments were exported and delivered to the Bank’s vaults in both Rome and Milan. By the end of 1969, the Banca d’Italia held less than 1,000 gold bars in London, or just under 400,000 ounces (approx. 12 tons).
 
Therefore, since Italian gold reserves have not in total changed very much since 1969, it would be realistic to assume that the Banca d’Italia’s London gold holdings have not changed very much since 1969, unless gold was moved back to London (or swapped back to London) after 1969. This would only make sense if it had been moved back to London for a specific reason such as to allow Italian gold lending through the London market. Gold lending only really began in London in the mid-1980s, and there is no public record that the Italians have engaged in gold lending through London.

Bern, Switzerland

Historical records from the BIS show that there wasn’t any Italian gold left in Bern after WWII, so whatever Italian balance is in Bern has been built up since 1946. It’s interesting to note that Sweden and Finland both recently published the international locations of their gold reserves, and revealed that only very small percentages of their gold is kept in the SNB vaults in Switzerland. Of Sweden’s 125.7 tonnes of gold reserves, only 2.8 tonnes or 2.2% is stored with the SNB vaults[5]. For Finland, only 7%, or 3.4 tonnes of its 49 tonnes of gold reserves are stored with the SNB in Switzerland[6].
 
If this Swedish-Finnish 2-7% range of allocations at the SNB was applied to the Italian gold that is reported to be outside Italy, it would work out at between 25 tonnes and 87.6 tonnes of Italian gold held at the SNB vaults in Bern. Assuming that there is very little Italian gold in London (400,000ozs or about 12 tonnes), and only a small allocation in Bern, then there could be nearly 1,200 tonnes of Italian gold at the Federal Reserve in New York.
 
Gold Audits and Repatriation

The Banca d’Italia state in their gold document that external auditors verify the gold held in Rome each year in conjunction with the Bank’s own internal auditors. The external auditors also verify the gold held abroad using annual certificates issued by the central banks that act as the depositories i.e.

This sound very similar to the way the German gold reserves stored abroad was audited. i.e. the gold stored abroad is not physically audited at all (although the Bundesbank did describe recently in quite a vague way that their gold in New York was recently audited by some of their own appointed representatives).

Given the widespread recent media coverage of the German Bundesbank’s plans to repatriate 300 tonnes of its gold reserves from the Federal Reserve in New York to the Bundesbank’s headquarters in Frankfurt, it will be interesting to see whether, in time, a critical mass is reached in Italian public opinion or even in Italian political opinion that would lead to the Banca d’Italia raising a similar request to the Federal Reserve.

The fact that the initial gold repatriated from New York by the Bundesbank needed to be melted down and recast (suggesting that it was low grade coin bars), does not inspire confidence that the Banca d’Italia might not face a similar problem if it attempts any gold repatriation from New York.

Source Links (all in Italian): 
Banca d’Italia gold document, April 2014
http://www.bancaditalia.it/media/chiarimenti/riserve-auree.pdf
 
RAI gold vault video
http://www.youtube.com/watch?v=4u4iSEQOxyk&sns=em
La Repubblica gold article:
http://www.repubblica.it/2009/07/sezioni/economia/scudo-fiscale-1/lingotti-italiani/lingotti-italiani.html
Movimento 5 Stelle article:
http://www.latina5stelle.it/vacciano_riserveauree_bankitalia/
Movimento 5 Stelle video of visit to Bank:
https://www.youtube.com/watch?v=RNbGc2P677s


[1] Excluding the IMF, Italy is the world’s third largest official gold holder; including the IMF, Italy is the world’s fourth largest gold holder.
[2] Central Bank Gold Reserves, An Historical perspective since 1845, Timothy Green, Research Study No. 23, November 1999, WGC
[3]
http://www.bis.org/banking/finserv.htm
[4] http://www.goldcore.com/goldcore_blog/swiss-gold-stored-“decentralised-locations”-–-snb-does-not-disclose-where
[5] http://www.thelocal.se/20131029/51064
[6] http://www.suomenpankki.fi/en/suomen_pankki/ajankohtaista/tiedotteet/pages/tiedote26_2013.aspx

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Fri, 05/02/2014 - 13:55 | 4721008 Xibalba
Xibalba's picture
Italy Thought They Had Over 1,000 Tonnes Of Gold At The New York Fed

 

fixed it

Fri, 05/02/2014 - 13:57 | 4721018 Kaiser Sousa
Kaiser Sousa's picture

u beat me...

cheers.

Fri, 05/02/2014 - 13:58 | 4721028 Newsboy
Newsboy's picture

I may also have over 1000 tonnes of gold at the New York Fed.

Fri, 05/02/2014 - 14:00 | 4721045 kliguy38
kliguy38's picture

you're just as likely to get it back as Italy will be to get theirs

Fri, 05/02/2014 - 14:04 | 4721069 sessinpo
sessinpo's picture

kliguy38         you're just as likely to get it back as Italy will be to get theirs

---

A little slow on tye sarcasm. Even without a sarc tag

Fri, 05/02/2014 - 14:07 | 4721082 fonestar
fonestar's picture

If Italy doesn't have Bitcoin, they don't have jack shit.

Fri, 05/02/2014 - 14:10 | 4721098 SoberOne
SoberOne's picture

You don't actually believe the fed still has it, do you Italy? 

Fri, 05/02/2014 - 14:15 | 4721126 jbvtme
jbvtme's picture

how many tons are stored underground in Mali?

Fri, 05/02/2014 - 15:32 | 4721479 boogerbently
boogerbently's picture

We had their gold, until that horrible Staten Island Ferry accident.

We'll return it at a rate of 8 years per pound.

Fri, 05/02/2014 - 15:42 | 4721502 BaBaBouy
BaBaBouy's picture

If You Want Your GOLD Back From The FED, GET IN THE FUCKING LINE, Please...

GERMANY Is Already Waiting T'ill 2020 To Get Just 35% Of THeir Supposed GOLD At The FED...

Just Shuddup And Get In Line Bitchezzzzzzzzzzzzzzz ...

 

PS...

The USA Dreams Of New WARS, While China Dreams Of Owning Most Of The Phys GOLD On This Planet...

Fri, 05/02/2014 - 16:08 | 4721617 Arius
Arius's picture

get in line after Germany and who knows who else is waiting in the shadows ... pray there is a USA to honor your receipt by the time your number comes up ...

Fri, 05/02/2014 - 19:39 | 4722366 raeb
raeb's picture

ahh, we may need to settle this in cash, but it will take a few years to do the paper work, with current prices of course.

Fri, 05/02/2014 - 20:15 | 4722460 Againstthelie
Againstthelie's picture

It's interesting that all of USrael's "friends" (which only became "friends" after being invaded) have nothing better to do than to transfer their gold to USrael. The latest "friend" that alledgedly moved his gold to USrael: Ukraine.

That's somewhat strange among central bankers which have so much trust central bankers words and into the system of gold receiveables, that they even write it as one single position (Gold and gold receivables) on their balance sheets.

Why do modern people like central bankers, with the full understanding of the credibility and honesty of the system, move their physical gold around and to New York? Aren't gold and gold-receivables the same?

 

And why is moved only to the USA. In very few years, it is expected that China will overtake USrael as biggest economy. How much gold has been moved from USrael to China, to reflect this new economic reality? Otherwise one could conclude, that the transport of the gold to USrael had nothing at all to do with the importance of the US economy...

Sat, 05/03/2014 - 12:47 | 4723825 PT
PT's picture

Love the headline - "Italy May Have Over 1000 Tonnes of Gold ..."

Reminds me of :

"You may have already won!!!!   30 MILLION DOLLARS!!!  I am so excited for you ... all you have to do is fill in this form, send in this ten dollar subcription ... you've definitely won, maybe perhaps ... etc etc etc" 

Fri, 05/02/2014 - 15:39 | 4721492 BaBaBouy
BaBaBouy's picture

.

Fri, 05/02/2014 - 14:23 | 4721182 fonestar
fonestar's picture

Karen Hudes told fonestar that the world's collective gold supply is stored in the Philippines.  OTH, the world's Bitcoin supply is stored in Satoshi's backyard.

Fri, 05/02/2014 - 14:27 | 4721216 jaxville
jaxville's picture

Ah, the myth of Yamashita's gold resurfaces. Better not buy gold because there is a gazillion tonnes in secret gov't stashes about to hit the market.

 If there was such a stash it would have been leased, swapped or sold into the market a long time ago.

  Hudes is full of shit

Fri, 05/02/2014 - 14:32 | 4721233 fonestar
fonestar's picture

Hudes also told fonestar that Coneheads are directing the World Bank.  Therefore, fonestar finds Hudes to be a highly credible source of information.

Fri, 05/02/2014 - 14:54 | 4721326 icanhasbailout
icanhasbailout's picture

Don't touch it, you fool! It's the Gold Reserve Eraser Button!

Fri, 05/02/2014 - 15:04 | 4721362 Manthong
Manthong's picture

They were smart and/or /lucky to keep half their stash at home.

The rest, they will likely have to buy back from China.

Fri, 05/02/2014 - 15:29 | 4721454 ThaBigPerm
Fri, 05/02/2014 - 14:56 | 4721336 ejmoosa
ejmoosa's picture

You forgot stolen...

Fri, 05/02/2014 - 15:29 | 4721465 WillyGroper
WillyGroper's picture

Yamashita's gold is not a myth. Saw one of his 4 letters of surrender. It was owned by a man 93 yrs old who's father owned the largest gold, silver & copper mines in the Philippines that were seized by the USG during WWII. His stories on Marcos, the introduction of the CB & the war were fascinating.

Hudes is a card carrying member.

Fri, 05/02/2014 - 17:41 | 4721976 jaxville
jaxville's picture

You have seen the paper but have you seen the gold?

Where have I heard that before?

Fri, 05/02/2014 - 19:03 | 4722246 heavy.metal
heavy.metal's picture

This reminds me of a Nigerian Prince I once received a letter from. He assured me he had a huge stash of gold and needed my assistance to recover it.

Unfortunately I couldn't afford to fund his travel expenses at the time, so I lost the oppotunity to earn my share of his 41 tons of gold!! (he promised me 20%)

However it's no good having so much gold anyway, as I tend to lose it on those terrible boating accidents.

 

Fri, 05/02/2014 - 19:07 | 4722261 FredFlintstone
FredFlintstone's picture

What a coincidence, I too have been corresponding with a Nigerian prince. Soon I will not have to worry about my financial future. Too bad you couldn't front him the money. You got to spend money to make money :)

Fri, 05/02/2014 - 15:56 | 4721544 HardAssets
HardAssets's picture

Maybe the 'Big Headed' oligarch race of creatures that Hudes mentioned in an interview, have the gold.

 

 

* Yeah, she really said this and it was recorded. Do a websearch.

 

 

Fri, 05/02/2014 - 17:35 | 4721955 Crawdaddy
Crawdaddy's picture

When I first heard her on a radio interview, I started thinking she might be legit (and posted a link to her stuff). Then she comes out with the fricken homo capensis conehead stuff. It is clear her mission is to spread disinfo by mentioning Jesuits and Coneheads in the same sentence. Hey look - its the coneheads! Although they are awesome at math but have no ability to reproduce, they are somehow are secretly running the planet! Oh and the jesuits work for them.

The "hidden gold" angle is when I knew she was a disinfo tool. Are we really supposed to believe proper paperwork is the only thing that stands in the way of claiming some hidden pile of gold? Come ahhnnnnnn!

Fri, 05/02/2014 - 14:31 | 4721229 Wahooo
Wahooo's picture

And

Fri, 05/02/2014 - 14:31 | 4721234 Wahooo
Wahooo's picture

It's gone

Fri, 05/02/2014 - 14:50 | 4721311 fonestar
fonestar's picture

Get right with Satoshi before the crack-up bitboom!  The end fiat times are nigh!

Fri, 05/02/2014 - 16:24 | 4721693 Poundsand
Poundsand's picture

Thanks.  By rehypothecating your post, I was able to double your up arrow allotment!

Fri, 05/02/2014 - 15:07 | 4721381 Blano
Blano's picture

I'm sure the Fed still has it, it just doesn't belong to Italy any more.

Fri, 05/02/2014 - 14:11 | 4721101 hobopants
hobopants's picture

Where the hell have you been? 

Fri, 05/02/2014 - 14:13 | 4721114 fonestar
fonestar's picture

fonestar's PAL was doing p-work.

Fri, 05/02/2014 - 14:12 | 4721108 Charles Nelson ...
Charles Nelson Reilly's picture

yea... I was thinking the same exact thing Fonestar?!?

/S

Fri, 05/02/2014 - 14:15 | 4721132 fonestar
fonestar's picture

Bits are money.  Everything else is bullshit.

                                                   ~ JBit Borgan

Fri, 05/02/2014 - 15:08 | 4721382 Pickleton
Pickleton's picture

Bits are 100% hackable, 100% of the time.  Therefore they are 100% more bullshit than everything else.

Fri, 05/02/2014 - 15:35 | 4721496 fonestar
fonestar's picture

Bitcoin has never been hacked.  Ever.

Western Union wagons carrying g0ld on the other hand....

Fri, 05/02/2014 - 19:09 | 4722269 Pickleton
Pickleton's picture

Meanwhile, back in the real world even your assertion is also 100% bullshit.

 

http://www.theguardian.com/technology/2014/mar/18/history-of-bitcoin-hacks-alternative-currency

 

Fri, 05/02/2014 - 15:52 | 4721554 HardAssets
HardAssets's picture

"Money is gold, and nothing else."

- J.P. Morgan

- Testimony before the US Congress - 1912.

 

Fixed it for ya.

Fri, 05/02/2014 - 14:16 | 4721121 jbvtme
jbvtme's picture

moved

Fri, 05/02/2014 - 14:15 | 4721130 MeMongo
MeMongo's picture

Man if you ain't one big bitcoin pimp! Gotta give you credit though, if nothin else you sure as hell are consistent! Might start calling you bitcoinmanhoe!

Fri, 05/02/2014 - 14:19 | 4721157 fonestar
fonestar's picture

1 BTC and you can call me Bittie all night.

Fri, 05/02/2014 - 14:22 | 4721178 MeMongo
MeMongo's picture

Bittie!

Fri, 05/02/2014 - 14:24 | 4721194 fonestar
fonestar's picture

You pay before you play.

 

16bY6d2wisEZ78pU6UaYf6fedmN4fBhsfF

Fri, 05/02/2014 - 14:49 | 4721310 Praeda2
Praeda2's picture

For a guy who does nothing but talk about Bitcoin, you don't have any money in it.

$446.84 USD is the price today. The address you posted;

Total Received   24.68750033 BTC

WOW 25k, or what a couple of suits cost me.

Less internet for the broke, mentally ill Canadian, who refers to himself in the third person and perhaps you can break a lousy 100k.

Fri, 05/02/2014 - 14:54 | 4721317 fonestar
fonestar's picture

How many internet facing wallets does fonestar manage?  How many does fonestar have in cold storage?  Your stats are meaningless loser.

And FYI, 24 BTC is a **SHITLOAD** of Bitcoin considering 99.9999% of the planet owns ZERO Bitcoin.

Fri, 05/02/2014 - 15:17 | 4721409 quasimodo
quasimodo's picture

Um, ok.......this may apply to metals, but bitcoin? Not so much, just go back to your lemonade stand fonestar.

Gawd, I was just starting to enjoy the lack of posts and now this again.

Fri, 05/02/2014 - 15:32 | 4721478 fonestar
fonestar's picture

The spamtoshi will continue until Bitcoin adoption improves.

Do NOT follow this link or you will be banned from the site!