The Real Reason Why Germany Halted Its Gold Repatriation From The NY Fed

Tyler Durden's picture


Following the stunning announcement in January 2013 that the Bundesbank would repatriate 674 tons of gold from the NY Fed and the French Central Bank, a year later the Bundesbank followed up with a just as stunning revelation that of the 84 tons the bank was supposed to bring back home, it had managed to obtain just a paltry 37 tons, with only 5 tons originating from the NY Fed.

The reason given for this disappointing amount was as follows:

The Bundesbank explained [the low amount of US gold] by saying that the transports from Paris are simpler and therefore were able to start quickly." Additionally, the Bundesbank had the "support" of the BIS "which has organized more gold shifts already for other central banks and has appropriate experience - only after months of preparation and safety could transports start with truck and plane." That would be the same BIS that in 2011 lent out a record 632 tons of gold...


Going back to the main explanation, we wonder: how exactly is a gold transport "simpler" because it originates in Paris and not in New York? Or does the NY Fed gold travel by car along the bottom of the Atlantic, and is French gold transported by a Vespa scooter out of the country?


Supposedly, there was another reason: "The bullion stored in Paris already has the elongated shape with beveled edges of the "London Good Delivery" standard. The bars in the basement of the Fed on the other hand have a previously common form. They will need to be remelted [to LGD standard]. And the capacity of smelters are just limited."

Or, simply said, generic pretexts for a failure to follow through with the Bundesbank's original intention of redomiciling physical gold, especially after Zero Hedge posted in November 2012 proof of collusion between the 1968 Bank of England and the Fed seeking to defraud Deutsche Bank: 'Bank Of England To The Fed: "No Indication Should, Of Course, Be Given To The Bundesbank..."

The charade ended with a thud in June of this year, when instead of continuing the farce, Germany simply gave up, providing an even more laughable reason why it can no longer even pretend to collect its physical gold located at New York's 9 Liberty Street.

Germany has decided its gold is safe in American hands. “The Americans are taking good care of our gold,” Norbert Barthle, the budget spokesman for Merkel’s Christian Democratic bloc in parliament, said in an interview. “Objectively, there’s absolutely no reason for mistrust.”

And that was it: not a single word more from Germany on the topic of its failed gold repatriation initiative. Until this week, when Deutsche Bank - the bank which is Germany's equivalent to America' Goldman Sachs in terms of policy decision-making - once again revealed just what the true reason behind the failure of Germany's attempt to bring its gold back. From Robin Winkler's special report:

... the gold community paid great attention to the decision of the German Bundesbank to “bring German gold home”. At the beginning of 2013, the Bundesbank announced it would repatriate 300 tonnes of gold stored in the US by 2020. It is well behind schedule, citing logistical difficulties. Yet diplomatic difficulties are more likely to be the chief cause of the delay, especially seeing as the Bundesbank has proven its capacity to organise large-scale gold transports. In the early 2000s, the Bundesbank incrementally repatriated 930 tonnes of German gold held by the Bank of England.

Because if anyone knows what really happened behind the scenes in Germany, and inside closed doors at the Bundesbank, it is Deutsche Bank.

And there you have it: it wasn't transportation, or "good delivery standards" concerns, or anything remotely related to Germany "decididng its gold is safe in American hands", but just the opposite: Germany was pressured to keep its gold in the US after a "diplomatic" line of communication was opened, most likely the result of the Fed making it all too clear clear to the Bundesbank not only who runs the show, but what the assured failure to repatriate Germany's gold would mean for "price stability."

Which has, for now at least, ended Germany's gold repatriation demands.

Now the question is, just how will the US pressure the Swiss "diplomatically" to make sure its own gold repatriation referendum does not succeed. Because if Germany failed miserably to obtain 674 tons of gold in 2013, it is assured that Switzerland will find absolutely nothing in its quest to obtain more than double, or 1,500 tons, of gold as a successful November 30 referendum outcome would require.

Then again, considering it was Obama's action that destroyed the Swiss banking sector after the US crushed the centuries-long tradition of "Swiss banking anonymity", this could be just the right action with which "neutral" Switzerland could finally take its revenge on the regime that cost it what was for centuries the primary source of capital inflow into the small and so very prosperous (until then) central-European nation.

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Sun, 11/16/2014 - 12:42 | 5454287 Irishcyclist
Irishcyclist's picture

Yanks/NSA must have overheard some really juicy stuff on Angela's phone to bring diplomatic pressure to bear.

Sun, 11/16/2014 - 12:48 | 5454319 Thanatos
Thanatos's picture

>> The fucking Canadians stole it?

>> It's Not THERE?


Sun, 11/16/2014 - 12:56 | 5454331 Haus-Targaryen
Haus-Targaryen's picture

Fed doesn't have it - and if Germany keeps pushing the subject, it will blow up the system, and the blame will fall squarly on the Fed.  

Seems to me that both parties need to shift blame to someone else -- perhaps Beppe Grillo can oblige?  

Sun, 11/16/2014 - 13:12 | 5454354 TahoeBilly2012
TahoeBilly2012's picture

The Swiss are acting very "terroristy" and they had better be careful or the US will be invading Switzerland soon. I hope our 10th Mountain Division is up for some ski/shooting. In fact, let's send in Paul Wolfowitz on some X cpountry skis with a 70 pound pack on, get things started right.

Sun, 11/16/2014 - 13:13 | 5454368 Keyser
Keyser's picture

What a farce... The Germans and Swiss are most likely planning their exit from western hegemony over this theft and who could blame them... 

Sun, 11/16/2014 - 13:15 | 5454378 TahoeBilly2012
TahoeBilly2012's picture

That would be acting very "anti semetic" of them. Clearly it would be that they had had enough of Zionist Banking and god forbid, Brad Pitt movies....

Sun, 11/16/2014 - 13:23 | 5454407 Pure Evil
Pure Evil's picture

Nooooooooooooo............not the Brad Pitt movies.

Oh boo hoo, where's my crying towel.

Sun, 11/16/2014 - 13:32 | 5454421 HenryHall
HenryHall's picture

No mention of Ukraine's gold bullion which was taken by Bundesbank and chalked up as a repatriation from America.

Sun, 11/16/2014 - 14:15 | 5454522 666
666's picture

Isn't it funny that the new ISIS dinars are made only from gold and silver. The caliphate is the only entity the world that uses real money instead of fiat. For that alone, they must be destroyed!


Sun, 11/16/2014 - 14:28 | 5454558 Manthong
Manthong's picture

Well, the good news for the Nazis is that the pussy Swiss will not be allowed to be counted properly to cement their swiss frankfurter to real value.

And.. the west still dominates the Kiev right butt fisted sector.

What did Kennedy call the Berliners? has something to do with a confection.

Sun, 11/16/2014 - 14:54 | 5454622 SRSrocco
SRSrocco's picture


Yeah, the Germans may say they want to keep their gold at the NY FED in public, but someone is receiving gold from the FED this year.  According to the Board of Governors at the Federal Reserve, 77 METRIC TONS OF GOLD have left the FED this year (Q1-Q3).

So, who's receiving this gold if it isn't the Germans? 

This may also be of interest:

The Reverse Of Central Bank Gold Flows Spells The Death Of The Dollar

Sun, 11/16/2014 - 16:26 | 5454886 BaBaBouy
BaBaBouy's picture

THE GOLD IS GONE !!!!!!!!!!!!!!! Prove It Otherwise...

It Is Probably ReHypothicated 100, 300, maybe 1000 Times...?

So HOW Do You Buy It Back ???

Impossible. They Have To Find VIRGIN GOLD In The 1000's Of Tonnes...

UNT GOOD Fecking LUCK...

Sun, 11/16/2014 - 18:08 | 5455124 knukles
knukles's picture

Just don't know who to believe anymore

(cynicism ... deep unabiding critical cynicism)

Note to self:  Author personal letter to Tom Freidman at NYT for his exceptional insights upon the matter


Double note to self:  Ask Tom to ask the Krugster what gold really is and means.  We'll get to the fucking bottom of this real quick, I say.  Paul!  Paul?  Where are you Paul?


Sun, 11/16/2014 - 18:11 | 5455146 winchester
winchester's picture

in this era of time those I beleivez is the russian 55t  on q3 2014.


for sure.


seeing amount of shitstorm coming over russia, no need to check the numbers

Mon, 11/17/2014 - 08:21 | 5456618 saveandsound
saveandsound's picture

Germany didn't halt its gold repatriation from the NY Fed. If you don't believe me give Susanne Kreutzer from BuBa a call: +49-69-9566-4231  

(source: )

And just in case the SNB is going to buy around 1500 tons of gold during the next 5 years... that would be 300 tons a year or 25 tons a month. That doesn't have to move the gold price significantly.

However... the world is drowing in debt. 

Sun, 11/16/2014 - 17:24 | 5455022 Mountainview
Mountainview's picture

The Swiss are currently brainwashed daily by the mainstream media to vote against gold repatriation. As general economic knowledge in Switzerland is about as bad as elsewhere, I bet media manipulation will prevail. Come on little sheep, follow the butcher. 

Sun, 11/16/2014 - 14:53 | 5454623 Bangalore Equit...
Bangalore Equity Trader's picture

Listen Manthong.

We all know one thing is for sure. When they say it's quicker from "FRANCE". It means it's quicker from Israel.

Oh, the US has piles of bullion in Syria. Yea right, it's all in Israel "FOLKS".

Sun, 11/16/2014 - 15:14 | 5454696 Manthong
Manthong's picture

kosher or halal.. you decide  :-D



Sun, 11/16/2014 - 15:25 | 5454730 Manthong
Manthong's picture

..but y’know.. I just don’t think that the over-confident FOLKS in the promised land covet the precious as much as the Indians, Chinese and Russians….. the chosen ones think that all power rests in a the hands of the money changers and banks.

Gee.. India, China, Russia.. half the land mass and population of the f’n planet..  I believe that is where you will find most things that shine.

Sun, 11/16/2014 - 18:53 | 5455276 Nitrocharged
Nitrocharged's picture

I found it (un)interesting that they are already saying it won't work because people would hoard the coins and that they would be easy to counterfit. Unbeleivable!

Sun, 11/16/2014 - 18:53 | 5455277 Nitrocharged
Nitrocharged's picture

I found it (un)interesting that they are already saying it won't work because people would hoard the coins and that they would be easy to counterfit. Unbeleivable!

Sun, 11/16/2014 - 14:57 | 5454642 buttmint
buttmint's picture

head over to Jim Willie's golden jackass website. Diff take.....

Germany went tit-fo-tat with USA after NATO military planners laid out the military campaign to destablize Ukraine. Germany has had enough war on its turf and asked for its gold in return. Germany knows that commerce and biz with Russia is MOST important!

Mon, 11/17/2014 - 13:03 | 5457561 Armchair Bear
Armchair Bear's picture

I think we'll need a blubbing towel...



Sun, 11/16/2014 - 13:48 | 5454457 Kirk2NCC1701
Kirk2NCC1701's picture

+1 for having had enough of Brad Pitt movies.

And add Angelina, George Clooney and Julia Roberts to that list.

Sun, 11/16/2014 - 14:12 | 5454513 Skateboarder
Skateboarder's picture

Movies stopped being any good after Lord of the Rings.

Sun, 11/16/2014 - 14:23 | 5454537 BurningFuld
BurningFuld's picture

Are you sure Gandalf? Or are you playing tricks on us?

Sun, 11/16/2014 - 15:11 | 5454685 Skateboarder
Skateboarder's picture

$12 eternal war state-propandaga flick tricks? That be the dark lord's doing

Morgoth -> Sauron -> Central Banks

And now we don't even know what the ring looks like, or where Mount Doom is. No eagle can help us now.

Sun, 11/16/2014 - 15:30 | 5454741 Manthong
Manthong's picture

LOR was 2001..

V for Vendetta was 2005

IMHO, that was Peak Cinema..

Sun, 11/16/2014 - 15:42 | 5454779 Confused
Confused's picture

The comic for V was much earlier, and IMHO much much better than the movie. The writer is excellent, and is often cited as one of the driving forces behind making comic books more than just things for kids. You should give it a shot. 

Sun, 11/16/2014 - 17:49 | 5455093 trulz4lulz
trulz4lulz's picture

If i'm not mistaken, V: For Vandetta and The Watchmen were two of the first mainstream comics that introduced the term of graphic novel. I wouldnt consider either of them comic books, most notably is the fact that they have an ending, comics are always open ended or re imagined in some way.

Sun, 11/16/2014 - 19:38 | 5455370 Manthong
Manthong's picture

I got out of reading pulp before that, but I would not want to diminish it when the concepts are so relevant.

..and I am dragging out the DVD right now.. I need a little shot of righteousness.   :-)

oopps, cool.. just found it as an .iso on the basement box.

Sun, 11/16/2014 - 23:35 | 5456060 Proofreder
Proofreder's picture

Watch Bogart's Casablanca -

Real plot, real acting, great dialog, marvelous actors.

Peak Cinema ?    Perhaps in the '40s.

One has to wade through more and more dirt for that one diamond.

Mon, 11/17/2014 - 02:02 | 5456296 Socratic Dog
Socratic Dog's picture

Or any of the (many) film noir classics from the same period.  There's one from the 40's starring Robert Mitchum and Kirk Douglas, buggered if I can remember its name, maybe the best film I ever saw.

Edit: "Out of the Past".

Sun, 11/16/2014 - 15:31 | 5454742 ParkAveFlasher
ParkAveFlasher's picture

Actually the Dwarfs were supposed to be Jews, hence their predeliction of jewels and artifacts, and their cave-dwelling.  I would say if you are looking for a truly revolutionary fantastic tale, read Baum's original Oz series, which does in delightfully simple short stories (that you can read to children, in fact) what it took Rand hundreds of pages of ponderously dense narrative replete with fathomless monologues to want to declare...that the wise lay low until the time is ripe for revolution, then go all in. 

Sun, 11/16/2014 - 15:37 | 5454760 Manthong
Manthong's picture

methinks Morlocks are a more suitable analogy.

Sun, 11/16/2014 - 16:04 | 5454837 Skateboarder
Skateboarder's picture

Having put book reading on the backburner over the last few years, I will definitely take your suggestion on the Oz series friend.

And for you, I have to share a masterpiece by Blind Guardian. Nightfall in Middle Earth is an aural telling of The Silmarillion. The lyrics are brilliant - only ever referencing character names when absolutely relevant to context. Gotta love a good interpretation.

Mon, 11/17/2014 - 10:08 | 5456858 sleigher
sleigher's picture

Nevermind the fabulous guitar work and vocal harmonies.  That band really did something incredible on the album.  Too bad they went full Queen later with night at the opera...  Was good but they really out did themselves with nightfall in middle earth. 

Sun, 11/16/2014 - 17:24 | 5455021 janus
janus's picture

great comment all the way round, know, i think you may be right about the dwarfs...i knew tolkien was representing certain peoples in all the various denizens of middle earth; and all along i figured they were like the portregese or something..but i reckon you're right after thinking it through.

i watched sector 9 with the boys last night...lots of representing in that story, too.

oh, and, no more laying low...vive la revolution!


Sun, 11/16/2014 - 14:22 | 5454538 trulz4lulz
trulz4lulz's picture

The fuck is that about? Thye completely DESTROYED the Lord of the Ring movies. For fucks sake, you cant just change the ending of an epic fucking novel! Not to mention completely changing the story line of Merry and Pippen! You can be serious!? Did  you forget the /s or have you just never read the books?

Sun, 11/16/2014 - 14:32 | 5454567 Skateboarder
Skateboarder's picture

Read them all, starting with the Silmarillion. You try condensing a Tolkien book into a movie; It's the best you're gonna get - take it or leave it kind of deal. I'd watch a 100-hour reproduction of the novels exactly as they are. Hell, the Silmarillion's creation tale would be a lengthy flick in itself.

Sun, 11/16/2014 - 15:00 | 5454655 trulz4lulz
trulz4lulz's picture

Blah blah blah. That is no excuse to change the entire last half of a novel! I mean seriously....they left The Shire completly untouched! Totally taking away the idea tht even if they had abandoned their quest, that they would have had nothing to go home to. Then there is the tree Ents and the Ent Wash debacle! They drank the Ent Wash but never grew to the size of men? Fuck that! It was a massive disappointment for me. The Shire was never freed from the Orcs and thus the entire scene and story beind the heroism of Merry and Pippen were lost! Dumb fuck Peter Jackson, for gods sake all he had to do was NOT FUCK UP THE ENDING!

Sun, 11/16/2014 - 15:22 | 5454715 Skateboarder
Skateboarder's picture

I know your disappointment and cannot in the least bit disagree with you. However, the end result, as it always materializes, is "take it or leave it". I'll take it, alright. They fucked it up, but it's better than nothing at all, and a continuous horseshit deployment of Afghanistan and Iraq war 'hero' stories, or a staging of the killing of the nine-elevs bad guy.

Ever read Michael Crichton books? Ever seen the movies? Exactly. (I'll still take those crappy movies, despite the fuckery)

Sun, 11/16/2014 - 17:45 | 5455077 trulz4lulz
trulz4lulz's picture

Sigh...I know...I was just so disappointed in the ending. It was the first movie where I booed the screen after it was over. My pops is a Crichton fan and he says the same thing. He sticks to the books. Im just not a huge movie/teebee watcher, so I just expected the ending to be correct. First World Problems, ya' know?

Mon, 11/17/2014 - 05:55 | 5456456 Manthong
Manthong's picture

the spectacle of LOR on screen was immense.. but when I read it all as a kid it  did just a good as a job for a book reader.

I kind of wonder at what point do we deprive the imagination and supplant it with imagery that overcomes initiation, intuition and phenomenology.....   heh heh.. go research that concept..



Mon, 11/17/2014 - 10:31 | 5456961 Jafo
Jafo's picture

I'd like to see quality animation applied the the 13 x 1 hour episodes of the radio play of the Lord of the Rings done by the BBC.  That would be both accurate to the books and epic in scope as well as satisfying to hardened fans of LOTR.

Sun, 11/16/2014 - 15:02 | 5454663 Things that go bump
Things that go bump's picture

I sort of grew up in Middle Earth, and of course I noticed that they took certain liberties with the novels. The Tom Bombadil episode was completely omitted as well as the scourging of the Shire, and they increased the role of Arwyn, probably to give the actress a more important role, but things like that are only to be expected when turning a great and very long work of fiction into film. I thought they did a more than creditable job and am grateful that I lived to see it. I hadn't expected anything so grand in scope. The earlier attempts were cartoons, you know.

Sun, 11/16/2014 - 15:35 | 5454755 ParkAveFlasher
ParkAveFlasher's picture

At least they left Beorn in The Hobbit...and showed some love to Radagast...I guess if Tom Bombadil had been around at the Battle of Five Armies, tearing Orcs to shreds, he would have gotten attention from the attention-addled film-makers.

Sun, 11/16/2014 - 15:45 | 5454784 Manthong
Manthong's picture

Fight Club meet Book Club.

 : -D

You gotta’ love it.

I’m going back to my C.S. Lewis.


Sun, 11/16/2014 - 15:51 | 5454801 Skateboarder
Skateboarder's picture

Unfortunately the ommission of Bombadil's character in the original trilogy also meant that the viewer of the film never sees the completion of dream-reality bridge. Just that one detail is ever so important, like the many others purists will gripe over. Alas, "take it or leave it".

I saw the first 'Hobbit' movie - appreciated some love to Radagast as well. Haven't seen the second. With this trilogy, I think I might choose the "leave it" option after seeing all three in time.

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