Gold Repatriation Stunner: Dutch Central Bank Secretly Withdrew 122 Tons Of Gold From The New York Fed

Tyler Durden's picture

A week ago, we penned "The Real Reason Why Germany Halted Its Gold Repatriation From The NY Fed", in which we got, for the first time ever, an admission by an official source, namely the bank that knows everything that takes place in Germany - Deutsche Bank - what the real reason was for Germany's gold repatriation halt after obtaining a meager 5 tons from the NY Fed:

... 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.

Some took offense with this, pointing out, accurately, that the gold held at the NY Fed in deposit form for foreign institutions had continued to decline into 2014 despite the alleged German halt. Well, today we know the answer: it wasn't Germany who was secretly withdrawing gold from the NYFed contrary to what it had publicly disclosed.  

It was the Netherlands.

This is the stunning statement made by the Dutch Central Bank earlier today, and which, all compliments to China's rate cut, is truly the biggest news of the day, as it shows that one doesn't need a referendum to repatriate their gold, nor does one run into logistic or diplomatic problems if one is truly set on procuring their physical.

As to why the DNB decided it was time to cut its gold held at the NY Fed by 122 tons? ""It is no longer wise to keep half of our gold in one part of the world," a DNB spokesman told Telegraaf. "Maybe it was desirable during the Cold War, but not now."

From the source:

De Nederlandsche Bank (DNB) has adjusted its gold stock location policy and has shipped gold from the United States to the Netherlands to spread its gold stock in a more balanced way.

 

Under the previous policy, 11% of the gold stock was located in the Netherlands, 51% in the United States, with the remainder held in Canada (20%) and the United Kingdom (18%). Under the new policy, the breakdown by location is as follows: 31% in Amsterdam, 31% in New York, with the relative holdings in Ottawa and London remaining unchanged at 20% and 18%, respectively. Following this adjustment, DNB is in line with other central banks holding a greater part of their gold stock in their own countries. Beyond realising a more balanced distribution of the gold stock across the different locations, this may also have a positive effect on public confidence.

 

Changing the distribution of the gold holdings across the different locations is not without precedent. From the end of the Second World War until the early 1970s, for example, DNB increased its gold reserves following the Bretton Woods Accord, mainly in New York. Since then, there have been other movements in DNB's gold stock. The main reasons for this being the gold sales in the past few decades and the closure of the vaults of the Reserve Bank of Australia, as a result of which DNB shipped gold from Australia to the United Kingdom in 2000.

Sure enough, AP confirmed:

The Dutch Central Bank says it has recently shipped 122.5 tons of gold worth around 4 billion euros ($5 billion) from safekeeping in New York back to its headquarters in Amsterdam.

 

In a statement Friday morning the bank said that its 612.5-ton national gold reserve is now divided 31 percent in Amsterdam, 31 percent in New York, 20 percent in Ottawa, Canada and 18 percent in London.

 

"With this adjustment the Dutch Central Bank joins other banks that are keeping a larger share of their gold supply in their own country," the bank said in a statement. "In addition to a more balanced division of the gold reserves...this may also contribute to a positive confidence effect with the public."

This is how the Old and New gold allocation of the Dutch Central Bank look currently:

Note: the reallocation has already taken place, and is not - like Germany - subject to a 5 year period during which the NY Fed is expected to recoup the gold. So it can be done!?

As to when it was done, here is the NY Fed's monthly reports of gold deposits by foreign entities: here we can see that while the 5 tons outflow in 2013 was most likely Germany, the recent surge in gold repatriation from Liberty 33 was the Netherlands. That said, only 57.5 tons of NY deposits gold has been officially repatriated through September, which means the October update, when it comes out, will be a doozy.

 

Some more details from the Dutch Telegraaf, google-translated:

In the vaults at the Amsterdam Frederiksplein was until recently 11% percent of the total of 612 tons of government gold. That is screwed up to 31%.

For years there were major concerns of the gold was still there. This months of almost military organized gold shipments from Manhattan DNB wants a 'balanced' distribution of the national gold buffer.

 

In addition, DNB expects Dutch citizens more confident that enough of our gold is in their own 'home' to guide the country if necessary following major crises.

 

At that effect also highlights the German Bundesbank, which are gold also partially recovered. De Nederlandsche Bank has great silence in recent months retrieved 130 tons of gold bars.

 

Last week drove armored trucks back and forth towards the Amsterdam Frederiksplein. "It is no longer wise to keep half of our gold in one part of the world," the DNB spokesman on the massive operation with gold bars to Amsterdam says. "Maybe that was during the Cold War still desirable, not now. ''

 

In Amsterdam is recently 31% of the gold. In the vaults of New York is 31%. It remains. De Nederlandsche Bank carries no gold bars back from the protected storage in Ottawa, Canada, where 20% of the gold remains. In London, the Netherlands keeps 18% of all Dutch 'sandwiches' gold as nest egg.

 

Netherlands moved his gold in the past frequently. In the period after the Second World War until the early seventies the Dutch central bank bought gold to replenish its reserves. That was mainly focused on the vaults in New York, which are built to earthquakes and bomb attacks endured. Since then bought and sold DNB gold and earned it every robustly.

Another curiosity: the gold was repatriated by ship. From Dutch News:

In total, 120 tonnes of gold valued at €4bn has been brought back to the Netherlands by ship, Nos television said. The high security reparations for the move took months.

Luckily, that particular vessel did not suffer any "boating incidents."

And now that the Dutch have shown just how "easy" it is to repatriate one's gold when not entangled in shifting alliances, diplomatic feuds, or suffering from "logistical problems" preventing one from collecting their gold, we wonder just how much more eager Germany or Switzerland will be to collect their own gold, or whether the Swiss November 30 referendum will decide to let countries like the Netherlands have a right of first refusal of whatever gold may still be held at the vault located 90 feet below street level at the New York Federal Reserve Bank (which as we reported a year ago, is connected by an underground tunnel to the JPMorgan precious metal which was located just across the street).

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
gonetogalt's picture

Best to own the shiny in hand, or, next best, still in tne ground. (In a safe jurisdiction, far from the grubby hands of Uncle Sam)

Badabing's picture

I just heard this story on CNBC!

Divided States of America's picture

Ha, the Dutch front ran the Germans..

Haus-Targaryen's picture

How is it the Dutch get their gold back but the Germans get stiffed?  

Member of the Tribe must be running allocations.  

Urban Redneck's picture

The Dutch agreed to publicly play the part of  stupid logically-challenged Eurotards, and announce that they were no longer storing 50% of their gold in one place (which only works on a technicality if one counts the 11th US state of NY separately from the 57th US state of ON).

Divided States of America's picture

Honestly, the question is why would anyone leave their valuable belongings at the care of someone elses possession in the first place. I am sure that the central bankers all know their counterparts are just as filthy and cant be trusted. Its like leaving my money at my brother in laws place and he seems to have a gambling issue. Just makes No fuckin sense. Everyone should just get their own gold back.

SafelyGraze's picture

time for regime change in netherlands

jaap's picture

here is the deal:

 

Netherlands plays along with the MH17 story and gets compensated from the disappeared Ukraine gold. That is your diplomacy at work. Respect for the Dutch negotiators.

 

outamyeffinway's picture

What's all the fuss about such a barbarous relic?

Pool Shark's picture

 

 

Is it possible central bankers no longer trust each other?

 

[no honor among thieves...]

 

Big Corked Boots's picture

Wait until the Swiss hear about this! Woo-hoo!

Haus-Targaryen's picture

Ghordo - If the Euro is so excellent -- why were the Germans and the Dutch making plans to leave? 

Save_America1st's picture

I want to ask this again from another thread just to see what anyone else thinks:

 

Does anyone else think the Nov. 30th date of the Swiss gold referendum vote seems a little suspect?

I mean doesn’t the Cartel like to hammer the paper PM’s on American holidays when our market is closed?

So if they wanted to scare the Swiss voters from passing the law (Which we know they do) then wouldn’t our Thanksgiving holiday when the market is closed be the perfect opportunity for them to crush the PM’s right before the vote is to happen on the 30th?

If they do that to scare the Swiss voters then maybe we could see gold down near 1000 and silver down near the 14?s.

Any thoughts on this?  I’m saving my dry powder up just in case this is how it plays out.  Might be a sweet buying opportunity.

Glasnost's picture

Why would the price of gold have any influence on people's opinions about the referendum?  How would that 'scare' the Swiss?

BaBaBouy's picture

ALERT ... NAIL Gunz Needed ... NAIL Gunz Needed ...

LibertyBear's picture

Anybody see the amount of gold held in Netherlands is now identical to the United States? They dare not have more in their own country than in the United States, which would show a lack of confidence. 

Divided States of America's picture

Another theory could be that the Germans had first dibs but declined on the tungsten filled bars and the easy going Dutchs just said `we'll take these, better than Nothing!'

Looks like the germans will be waiting a long long time.

zerozulu's picture

Is this the same country who put a banker in jail? Just curious.

Pinto Currency's picture

 

 

Watching the gold lease rates increasing showing physical shortage.

This has the potential to turn into a mess very quickly.

Anasteus's picture

Fuck... do you really think the Dutch forgot to take ultrasonic thickness gauge with themselves?..

MansaMusa's picture

@Divided States: hahaha, Netherlands will find out once they melt ot down and try to sell some kilos off to Shanghai!

Goldy Locks's picture

What I find suspect and incredible is that the Dutch authorities discretely and spontaneously made the necessary to get their gold back …and got it indeed, whereas the Swiss people had to launch and defend a referendum against their own Central Bank and governement regarding almost the same subject, and are still ridiculed by TPTB, with no obvious success in sight.

How can two governments have such an opposite attitude about the same subject ?

Dutch +1000
Swissies -1000

847328_3527's picture

The Dutch witnessed what happens to nations that disagree with Uncle Sam; namely, they get their asses confiscated or frozen. [You can ask the Russians about that hard lesson]

 

Lesson: If you don’t hold it, they’re going to confiscate it.

 

Theosebes Goodfellow's picture

~"Netherlands plays along with the MH17 story and gets compensated from the disappeared Ukraine gold. That is your diplomacy at work. Respect for the Dutch negotiators."~

Why do I think this is somehow tied to the secret European "Buyer of last resort", (who is supposed to be a Belgie), who willingly propping up T-Bill sales? Did I miss something here?

Reptil's picture

Yes, I think that is what happened.
However, there's more to this. Timmermans (now under the wings of Junckers) is working to get the TTIP (with or without arbitrairy clause) pushed through.
"Respect"? It's the dutch people's gold, if this was a trade then it's a machiavellian one. Sounds more like "treason" to me.
What's required to get the other 31%?

That said.. there seems to "have been" a plan to reïntroduce the Gulden, the currency before the Euro in 2012.
That plan seems even more rational today, given the total financial mess in Brussels. (the sudden "hole" of 1,1 blj. euro)
http://www.nrc.nl/nieuws/2014/11/18/regering-had-in-2012-scenario-klaarl...
http://fd.nl/economie-politiek/902973/eu-naheffing-naar-1-1-mrd-door-beg...?

I think the euro mess is a lot messier than we know.

SafelyGraze's picture

fun read from 1912

us money vs corporate currency

like reading a current blog

 

Haus-Targaryen's picture

THIS IS EXACTLY WHAT I WAS THINKING! 

"Listen, here is the deal -- we kill a ton of your people and piss off the entire world at the Russians.  If we get the war we want -- you get Flanders back.  If the Russian's don't bite -- you get all of Ukraine's gold.  If you don't agree right now -- we offer this to the Germans. Deal?"  

disabledvet's picture

"And we'll call it an agreement too!"

Yep, Putin is a tough guy alright. How he graduated from KGB University is a mystery to me though.

escapeefromOZ's picture

The way I analize it , KGB was smart , and he was a Colonnel 

piratepiet's picture

wow man you must be an insider lol

jarana's picture

After now US army was the reason.

No longer any more.

Richard Chesler's picture

what they really meant,

"It is no longer wise to keep half of our gold in the hands of Goldman scum"


BigJim's picture

 Honestly, the question is why would anyone leave their valuable belongings at the care of someone elses possession in the first place. I am sure that the central bankers all know their counterparts are just as filthy and cant be trusted. Its like leaving my money at my brother in laws place and he seems to have a gambling issue. Just makes No fuckin sense. Everyone should just get their own gold back.

It makes perfect sense to Western central bankers, because they can shift it around, rehypothecate it, and lease it out more easily via their various gold swaps, thus keeping its price down in terms of their chief product, fiat.

TahoeBilly2012's picture

DS they were afraid the Russkies might invade and grab all the Euro gold, no one mentions this, but that was the logic behind storing gold "safely" in Nor Am. 

messymerry's picture

@Divided State: Part of the contingeny planning during the cold war was was to develop scenarios for the overrunning of Western Europe by Soviet forces. Needless to say, when my forces get to your central bank, I am going to make a withdrawl. So, the gold was moved to protect it from the USSR. Now the gold is being moved back to Western Europe to protect it from the USSA. That's it in a nutshell.

;-D

Headbanger's picture

Yeah that whole "Tulip-mania" thing there left a lasting impression on them.

TeamDepends's picture

After the obligitory dead-of-night smackdown, gold has rebounded strongly. If it finishes strong today, the third Friday in a row, then it is clear that the cartel is losing control. Note we said "losing", not lost. Those of you waiting for lower prices will be waiting a long, long time.

SRSrocco's picture

Things are about to get REAL INTERESTING in the PRECIOUS METAL MARKETS.  If we get a YES VOTE for the Swiss Gold Referendum... this should signal the end of U.S. Dollar hegemony. 

Furthermore, GFMS made two big announcements in its Silver Market Interim Report just released a few days ago.

THESE ARE A BIG DEAL:

Silver Mine Supply To Peak 2-3 Years & Drawdown Of LBMA Inventory – GFMS

http://srsroccoreport.com/silver-mine-supply-peak-2-3-years-lbma-inventory-draw-down-gfms/silver-mine-supply-peak-2-3-years-lbma-inventory-draw-down-gfms/

Save_America1st's picture

@Steve (SRSrocco)

 

Do you think the Nov. 30th date of the Swiss gold referendum vote seems a little suspect?

I mean doesn’t the Cartel like to hammer the paper PM’s on American holidays when our market is closed?

So if they wanted to scare the Swiss voters from passing the law (Which we know they do) then wouldn’t our Thanksgiving holiday when the market is closed be the perfect opportunity for them to crush the PM’s right before the vote is to happen on the 30th?

If they do that to scare the Swiss voters then maybe we could see gold down near 1000 and silver down near the 14?s.

Interested in your thoughts on this.

Tinky's picture

Obvious manipulation is no longer scaring those who are awake.

SRSrocco's picture

Anyrhing can and will happen.   That being said. .. a vote either way will be positive for gold going forward.  Now that we hear Netherland secretly getting their gold from the NY FED... this could also put more pressure on other central banks to bring their gold back as well.

This ccould actually be the factor that motivates the Swiss to vote YES.

STEVE

Kirk2NCC1701's picture

"Finished strong" ? Don't make me LMAO.
You'd have sung a different song a year ago, if it were at today's price.

I've been harping on this for over a year -- the lone voice, like John the Baptist -- that TPTB will keep it down or channel-bound, until they decide otherwise. Getting excited about a little rise is like a bum getting hard because a girl smiled at him.

Human nature... so predictable.

DaddyO's picture

That's what happens when even the goldbugs buy for the wrong reason.

If you bought PMs with price in mind, you're in for a real disappointment as we move through the last stages of this manipulation.

Strong hands, only strong hands...will survive the coming deflation.

DaddyO

Badabing's picture

Kinda looks like a puppet government in Germany since 1945 is true.