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Gold Of Switzerland, Netherlands and Sweden Held By Bank Of Canada - Location Unknown
Gold Of Switzerland, Netherlands and Sweden Held By Bank Of Canada - Location Unknown
Ex Bank of Canada governor Mark Carney, now Bank of England governor, holds up a gold coin
at the Royal Canadian Mint to promote the public sale of rare Canadian gold coins previously
stored at the Bank of Canada since 1935. Canadian Press/Adrian Wyld
Highlights
- Upcoming Swiss vote on gold repatriation could lead to gold repatriation from Bank of Canada
- Bank of Canada only acts as gold custodian to four foreign central banks
- Switzerland, the Netherlands and Sweden say they hold gold in Ottawa
- Bank of Canada no longer a major gold custodian; Canada has virtually no gold reserves
- Gold reserves destination unknown after moved from Ottawa vault as part of Bank of Canada HQ renovation
In just three months, on November 30, the Swiss will vote in a federal referendum on the future of the country’s gold reserves.
The referendum has arisen through a popular initiative called ‘Save our Swiss gold initiative’. In Switzerland, citizens can propose changes to the Swiss constitution through a mechanism called a popular initiative, even if parliament is against the proposal.
The ‘Save Our Swiss Gold’ initiative is set to highlight the important issue of sovereign gold reserves and who has possession and controls them. It may lead to an important debate about each country’s national patrimony and their gold reserves.
The ‘Save Our Swiss Gold’ initiative is proposing the following:
- rules to prevent the Swiss National Bank (SNB) selling any more of the country’s gold reserves
- to direct that the SNB must keep a minimum of 20% of its reserves in gold, and
- to require that all Swiss gold must be stored in Switzerland.
This would require repatriation of Swiss gold since some of the Swiss gold reserves are stored abroad.
The Swiss National Bank (SNB) are against the proposal but were forced last year, in reaction to the popular campaign, to reveal the storage locations of the Swiss gold.
Gold bars and the Swiss flag
In April 2013, Thomas Jordan, SNB President, confirmed that 70% of Switzerland’s gold is in Switzerland, 20% is at the Bank of England, and 10% is stored with the Bank of Canada, and that this mix of holdings had been in place for more than a decade.
Since the Swiss hold a total of 1,040 tonnes of gold reserves, this would mean that there are 104 tonnes of Swiss gold at the Bank of Canada and 208 tonnes in the Bank of England. Jordan’s explanation of the foreign gold storage was that it provided "adequate regional diversification and good market access".
Since the Bank of England specialises in the custody of gold on behalf of numerous foreign central banks, it’s not surprising then that the SNB stores gold at the Bank of England.
What is surprising is that the SNB still holds gold at the Bank of Canada, since the Bank of Canada is a legacy custodian of other countries’ gold and appears to have stopped storing other nations sovereign gold in recent years.
When the Bank of Canada was asked earlier this year as to how many foreign central banks it acts as gold custodian for, it confirmed that it currently acts as gold custodian for only four foreign central banks, but that due to confidentiality, it was unable to disclose the identity of the national account holders.
However, its known from other sources that both the Netherlands and Sweden also hold some of their gold reserves at the Bank of Canada.
The Federal Reserve Bank of New York holds 1,536 metric tons of German gold, nearly half of Berlin’s reserves.
This enormous hoard of gold is stored in the fifth subfloor of the bank’s building on Liberty Street, 25 meters
80 feet) below street level, and 15 meters below sea level. Or is it? The Germans want to know and
want it back, as do the Swiss and other nations.
The Dutch central bank, De Nederlandsche Bank, has stated previously that most of its gold reserves are held at the Federal Reserve Bank in New York, the Bank of England, and the Bank of Canada, with less than 10% stored in the bank’s own headquarters in Amsterdam.
The Swedish Riksbank has also stated recently that its gold is stored in a number of foreign locations, such as the Federal Reserve, the Bank of England but also the Bank of Canada.
The identity of the 4th foreign central that stores gold at the Bank of Canada is unclear, but it may be the Bank of England or the Federal Reserve, since both banks historically held gold accounts with the Bank of Canada.
Given that Canada sold nearly all of its own substantial gold holdings a number of years ago, it seems like an anomaly that the Bank of Canada in Ottawa is still holding gold on behalf of other countries. Most countries that had held gold in Ottawa repatriated it long ago.
Citizens of Switzerland, the Netherlands and Sweden should be concerned that some of their nation’s gold is in custody with a bank that is no longer a specialist in gold custody and that did not even see fit to maintain its own gold reserves.
They should also be concerned about the secrecy and lack of transparency regarding their gold, especially given that the Bank of Canada's remaining custody gold has recently been moved to an unknown destination.
The Bank of Canada's headquarters on Wellington Street in Ottawa is currently undergoing an extensive multi-year renovation which required the Bank to vacate the building last year, and empty it's entire contents, including the gold stored in the subterranean vault.
Whatever gold was still in the vault, that runs from Wellington Street on one side of the building out as far as Sparks Street on the other side, has now been relocated elsewhere.
Where the gold has been moved to is unknown since the Bank of Canada won't comment.
The upcoming Swiss gold referendum will be very interesting and will highlight and focus minds on why the SNB vigorously defends the need to keep some of its gold reserves in Canada, especially given that the Ottawa gold is now on the move.
In the same way that it is important for nations to have outright, unencumbered ownership of their gold, it is vitally important for individuals to do so. GoldCore continue to advise owning allocated and segregated physical coins and bars in Hong Kong, Singapore and Zurich.
See our Essential Guide To Gold Storage In Singapore here
by Ronan Manly, GoldCore Consultant. Editor Mark O’Byrne of GoldCore
Sources available on request - info@goldcore.com
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I hope some Swiss chaps try and sell their votes on Ebay like some Scots have. I would happily buy a piece of history to vote in the Swiss referendum.
Oh yeah...mogul rider, all those useless tons of gold that you and yours are tripping over, just let me know when I can swing by and get it out of the way for you...this would give me the opportunity to bitch slap you also...you criminal dufus dickhead pumper idiot moron.
Have a nice day.
this is moscow gold.
the kind of gold a treasury as a result of an agreement made after or during a war, made by a weaker party on the terms of a stronger one.
As long as they have their paper reciepts, what's the problem?
A local rumor is that a very very large deposit Gold is located in the well guarded Bank of Canada building in Regina, Saskatchewan, the Queen City, the home of the R.C.M.P., but you did not hear that from me. :))
I bet the gold is in one of Peter Munk's Russian-owned mines
I bet the gold is in one of Peter Munk's Russian-owned mines
Goldfinger Auric Transport Co did the relocation.
No worries, the gold is now held at the Bank of China.
Bank of Canada has some paper gold, that can be repatriated.
What gold? It's all been rehypothecated over and over and over and over and...that coin Carney is holding is all that's left.
http://olduvai.ca
Love the old photo. Wall of gold, circa 1970. No pallets needed.
Nixon was president, and the war in Vietnam was draining the country of men, morals and GOLD.
At least it wasn't at the New York Fed.
The Germans are SOL (or should that be SOG?)
Oh maybe this is the gold that was lost in the audit a few years ago. Sorry, guys. We might find it if Sweden will promise not to beat the Canadian men in hockey again.
It's not hard to figure out where the gold is. Check this link and it's all revealed
http://www.mint.ca/store/buy/gold_coins-cat120004
Yep, RCM just down the road on Sussex Drive, 5 min drive.
400 oz bars have a habit of being turned into coins in a Mint.
Welcome Switzerland, Netherland and Sweden to Bitcoin.
This matters why?
The gold pump is trying to create another stupid conspiracy.
They store in Noth America to spread risk you moron.
This constant scam noise about secret vaults empty is really disingenuous.
Gold is getting crapped on because it doesn't matter anymore in currency exchanges.
It matters only when you need to bribe the concentration camp guard so your family escapes.
My family has owned gold for 200 years or more and it just sits there waiting to be used. We know more about gold than any dufus around here.
It is a brick I use to hold open my basement door. The true dickheads are you guys pumping gold for what it is not
A viable exchange currrency.
It's and insurance policy- nothing more.
The last 3 years has proven that. You pumpers are the crooks.
Any idiot that believes you scammers deserves to get ripped off
Currency exchange isn't important either.
Tangibles traded is of value: what is manufactured, where oil is shipped & where jobs go.
Food too.
The rest is hocus-pocus. Abra cadabra. Walla Walla Washington.
"This constant scam noise about secret vaults empty is really disingenuous."
How about a regular accounting of the all the so called gold reserves. If I had a bar in storage with numbers, I would like to see a live picture of it in the vault, so I watch it's movements, and have a third party audit on a regular basis. What is not happening is as interesting as what is happening. Tally ho.
So let me get this straight. You use a gold brick to prop open yer basement door? What does yer mother say about that?
Maybe it's that bitcoin guy in disguise, what was his name?
O ye,...Fonestar
Knowledge without wisdom means you know nothing
So I can take the trend of the last 3 years and extend it out to infinity then? Fracking will solve the energy crisis! Bonds will go negative yeild. Everyone will keep dicking around in Ukraine without a hot war. Yippee
US to world: We do have your gold. Feel free to come and get it at your leisure. Double dog dare you.
Why do countries let others hold their gold and buy junk paper 'promises' from them instead?
Well it isn't their own personal gold for a start is it!
Head of Central Bank of Wanconia: What's in it for me if we lease all our gold out?
Head of BIS: 10mio $ in your Cayman account and we won't release cettain videos depicting you in compromising acts.
Head of Central Bank of Wanconia: OK, Deal.
Never figured the Swiss could be duped like this. Switzerland failed to read the memo on the new primary commandment: "Thou shalt be the criminal before thou is the victim ". My condolences to you on your loss.
Actually the Swiss got that memo, apparently long before anyone else did... the entire reason that Swiss gold is in Canada is due to the SNB withdrawing all gold deposits with FRBNY in 1996, due to the possibility of criminalization/theft by the Volker Commission.
I can't imagine why any citizen would vote against this referendum. Therefore, the most important question is who will be counting the votes.
Because both the federal council and both chambers will advise against it, the SNB already has spoken against it (as it would put enormous up-ward pressure on the CHF) making it difficult to maintain the Euro peg which was already defended by a huge increase in the SNB balance sheet, and the Swiss economy would likely suffer (decreased export volume). The usual fearmongering... we'll soon know, but chances are slim IMHO, as most (Swiss and other) people do not have a clue about gold.
Votes are counted locally. But because one of the three questions in the referendum places binding constraints on policy flexibility it may queer the deal.
Where is Ukraine's gold?
Yeah, that flew out on a plane the day after the fertilizer hit the fan. Where did it go? 33 Liberty St? Sure as hell no Ukranian will ever get to touch it again. Hmm, as I recall England was gonna watch Poland's gold round about 1939. Wonder if they kept their receipt for return...
What gold?
What's a golds?
That's awfully clost to the US. Wonder if they'll get their gold, unlike say a weak mid continental teutonic country. Probably nein.
It's gone already. We gave it all to Stevie Harping to buy the last election.
Notice other countries already repatriated. Its not gone.
canada may have to strike...again.
Strikes here get fewer and fewer as the unions get busted over the years.
Right now BC teachers are still OUT. Mostly they are fighting for better student/teacher ratios; better education. Not really much for wages beyond a catch-up on inflation.
Only real "bloated" unions I know of that still survive are trucking and dock workers. Lot of dead wood there.
Workman in Ottawa "Well, the gold was over there but then a truck with US-NY plates came and took it all away before we started work."
Poof, and it's gone. Sorry Switzerland
Life is boring. Let's play a game! What shall we play? Three shells and a pea? Where's Goldo? Maybe Old Maid?
I got 2 oz. All I had to do was tick the right box in the election booth.
Late night. Got nothing better to do than f around with Stephen Harper's name.
Little Stevie Harbinger
Little Stevie Harping.
Stevie Horror Show.
Hapless Steve.
Stevie Harpoon.
Just Steve.
Stevie please go away already.
What Have I ever done to deserve this idiot? We already paid our Offalbama penalty with Mulroney.
Now we got nothing to vote for. Jack?
No future here. But I guess we do have some gold we can loot for the FED.
Sorry. (not really).
If you are on the fence about whether or not to hold some physical gold, you best decide before the Swiss referendum vote. If the people of Switzerland do vote for this it will result in an immediate understanding that most central bank gold has been leased out to suppress the price and that "gold receivables" are what the banks now hold in leiu of actual bullion. What do you think Alan Greeenspan meant when he said; "should the price of gold rise, central banks stand ready to lease gold in incresing quantities"?
I don't know whether or not the price will explode at that point but I do know that the retail bullion trade will see a surge in demand that will result in multiple failures to deliver and subsequent suspension of bullion sales to the public.
By rights the price should move up dramatically in that environment but the exchange set pricing is as phoney as a three dollar bill. The financial sector has a huge vested interest in keeping gold prices (and investors fear levels) down.
For now you have the option of obtaining specie. By mid December that option will no longer exist as actual physical metal privately held will be almost impossible to obtain.
jax
I do agree that bullion could become hard to get (even as the price continues to drop as more paper contracts are written.) Eventually the fools that seek to buy leveraged gold will be hurt when it becomes clear that paper has been written in excess of physical supply....and they are settled out in cask...worthless cash....paper gold, a very bad idea....
Although the contrived price is set on the leveraged exchanges, the bottom line is that physical gold must be supplied to the market to satiate demand. You are correct that most Western investors settle for derivatives though that is not the case for the East. The East is providing the demand for physical that is largely absent in the West. That physical demand has grown substantially over the years and paper contracts do not cut the mustard with those buyers in India and Red China.
The central banks may not have actually leased out the physical. It is possible they just used their holdings to guarantee that if a deal went bad they would ultimately provide their gold.
This allows the creation of paper gold.
The main reason for low gold prices is that most 'gold' buyers are content with a paper promise of gold in the future.
Say the Saudis (who like gold) wanted to get more without running up the price as happened in 1980 (a time, similar in many ways to what we are in now). They could pledge an asset (oil) and the central banks (anxious not to see gold skyrocket) could assure the deal. The Saudis could effectively fund mining operations (in say south Africa) and instead of buying gold on the market, they got the proceeds of the mines. This would have been a win - win.
Central banks did not want gold too high (for reasons that made sense then) and the Saudis did not want to pay ten to thirty times the current price for gold, as happened in 1980 ( a time when the dollar was tanking).
Just Another idea....
"In Switzerland, citizens can propose changes to the Swiss constitution through a mechanism called a popular initiative, even if parliament is against the proposal."
well!
*there's* your problem!
first, you have a constitution.
get rid of it.
second, you can oppose your very own parliament which is acting on your behalf on all things.
when ordinary people go around "making laws" and "changing things," only chaos and hardship can result.
hugs,
the habsburgs