It's Official: Austria Repatriates Gold, Confirms Loss Of Faith In Bank Of England

Tyler Durden's picture

One week ago, the world was not exactly shocked to learn that after Germany and the Netherlands, one more country had unofficially joined the ranks of nations who have seen this all before and know how it ends, when reports emerged that Austria would repatriate 140 tons of gold from the Bank of England (appropriately immortalized in "this is what happens when you hand your gold over to The Bank of England for "safekeeping".) As of today, it is official.

Earlier today the Austrian Central Bank confirmed the Kronen-Zeitung report, and said that by the year 2020, it would hold 50%, or 140 tons, of its gold domestically, up from 17% currently. This means that Austria will withdraw some 140 tons of gold from the BOE which holds 80% of Austria's gold currently (and will soon hold only 30%) and send 92.4 tons back home to Vienna with another 47.6 tons being sent to Switzerland.

Which is also the biggest news: Austria is explicitly demonstrating a lack of confidence in the "pro-western" system of which the Bank of England is a critical cog, and instead opting for "neutral" Switzerland, which will hold nearly 50 tons of the gold formerly located at the Bank of England.


As AFP notes, the central bank said it took the decision after recommendations made by the Austrian Court of Audit in February, which warned of a "heightened concentration risk" linked to storing the majority of its reserves in Britain. At the time, the bank had argued the policy was warranted because London was a major international centre for the gold trade."

Well, London still is a major international center, but in the past three months the bank surprisingly changed its mind after reviewing the court's advice to diversify storage locations.

Vienna confirmed it would begin to gradually repatriate 92.4 tonnes this summer. A further 47.6 tonnes will be transferred from Britain to Switzerland.

From the Austrian Central Bank:

In May 2015, the gold reserves held by the OeNB amounted to 280 tons, having remained unchanged since 2007. Austria’s gold reserves are fully owned by the OeNB, which maintains and manages them with utmost care. In line with the OeNB’s current gold storage policy, 17 % of its gold holdings are at present kept in Austria, 80 % in the United Kingdom and 3 % in Switzerland.


Recently, the Governing Board of the OeNB adopted the 2020 gold storage policy following a regular in-house gold strategy and storage policy review, while also considering the recommendations made by the Austrian Court of Audit. The cornerstones of this policy are as follows:

  • By the year 2020, 50% of Austria’s gold reserves are to be held in Austria (OeNB and Münze Österreich AG), 30% in London and 20% in Switzerland.
  • Starting from mid-2015, the new storage policy will be gradually implemented in keeping with security and logistical requirements.
  • A comprehensive review and, if need be, adaptation of the storage policy is scheduled for 2019.
  • The OeNB will regularly report on the progress in its upcoming annual reports.

* * *

Good luck Austria with that repatriation and be sure to triple check that gold. After all you don't want to be like the Bundesbank which in 1968 got the short end of the stick following some questionable collusion between the BOE and the Fed as we reported in "Bank Of England To The Fed: "No Indication Should, Of Course, Be Given To The Bundesbank...""

Comment viewing options

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

Next thing ya know some archduke will get shot..

kliguy38's picture

more like a few billion sheep will get fried.

stant's picture

Be exporting artistic corparals

SafelyGraze's picture

it will be transported in unmarked cars, subject to civil forfeiture

it will then be confiscated by the highway patrol, sent to be assayed, and never come back from the assay office

the point being: you can attempt to repatriate your asset, but you will never ultimately be in possession of it

bill and melinda bullionbank 

knukles's picture

Well, they can get 25 tons from Syria shortly.

SickDollar's picture

The signs are on the wall , you can tell and feel we are coming up to an end of an era \system

MSM are now inviting people like Peter Schiff to talk about how ad the economy is bad , that should tell you something if you still drink the  fed cool-aid

DutchR's picture

Boeing 747-400F Max. payload: 112,630 kg

I think they use carrier pigeons in Austria that's why it takes five years.

COSMOS's picture

Right on the money Dutch, and why do they even have to keep any in Switzerland, its not like Austria doesn't have some formidable mountains of its own to lock the gold up in for safekeeping.

El Oregonian's picture

AUSTRIA: You've got something of mine, We want it back... Schnell!!!

holgerdanske's picture

I, for one, would no longer trust the Swiss to hold my gold.

The Americans seem to be running roughshot over Switzerland, and that can never be good.


It is about time the Swiss regained some of their independence and told the americans where to get off.

actionjacksonbrownie's picture

5 years to get your gold back? What's the rush?

Winston Churchill's picture

Cover story.Bet its already gone.

Churchills first law: nothing strategic is ever announced until AFTER fully completed.

kliguy38's picture

of course its gone. there's no CB gold to be had without taking down another "rogue country" like Libya or Ukraine....etc etc.

Winston Churchill's picture

That as well.

So much secrecy over a barbarous relic.

Anyone could think they are lying to us.Perish the thought.

IndianaJohn's picture

All warfare is an armed robbery.

Freddie's picture

Sadly - all wars are mass murder for money.

Arnold's picture

New Alchemy.


Gold into paper.

Gold into tungsten.

Gold into thin air.

Kirk2NCC1701's picture

You know that we're at or near Peak Bullshit, when even ZHers aren't buying the "Gold Repatriation" stories any more.

"Follow the Money", and ask the CSI FAQ's: "Who* Benefits the most from cheap gold?  Who has Motive, Means and Opportunity?"

Take you time, don't get distracted. [tick, tock]


*Ch-ch-ch-China!  I-i-i-i-India!  Saudis, Israelis!  Oligarchs.

Urban Redneck's picture

You obliviously haven't seen the backlog at the Swiss gold refiners in Ticino... On the bright side, storing some of the gold in Switzerland will probably reduce the overall transportation charges.

Stumpy4516's picture

Syria better move it's gold asap.  Maybe to Iran.  But then Iran better be get missiles from China (it does not appear Putin actually delivered any missles despite his scary threats to do so) because the next gold to be vanished after Syria is most likely Iran's.

Kirk2NCC1701's picture

Buffet cornered that market a few years ago.  In 2011, I think.

ParkAveFlasher's picture

Wait, what about that whole meme that Lizards run the CBs and coordinate all moves down to hourly urinal visits across the world?  You mean, the masters of the universe might disagree with one another, back bite, bru ha, and so forth?  Wow, this upsets my whole world view.

TeamDepends's picture

Get ready for some intense gecko on gecko action. Going to be epic!


There is only one MASTER OF UNIVERSE, and all the 'others' are frauds that were outed March 10th 2008 around 11:00am Bear Stearns New York City time. Moreover, I had to form a dictatorship in order to undo a dictatorship because we all know that one fights fire with fire. When Wall Street, and the de Rothschild Banksters, finally realize that there is no possible way to kickstart the economy to get it running again it will be too fucking late. I strongly recommend that the de Rothschild Bank deposit $30 Trillion physical gold bullion in my bank account before I go full Lex Luther on the collective imbeciles and take the entirety of their holdings.


Truth is stranger than fiction, eh, but rest assured that I ain't fucking around when it comes to control over the entire World economy. Greenspan's 'flaw' is that he never imagined that I would appropriate his mojo, SUCKERS.

KnuckleDragger-X's picture

Damned barbarians, always wanting shiny stuff, don't they know that magic money is much superior.....

Freddie's picture

Austria has a loss of faith in the Bank of England?

Sort of like saying you have some doubts that Jack The Ripper is an honorable man.

yogibear's picture

Both the US and UK have lost gold. China will soon announce it's been taking the gold from the US.

With the US, the emperor has no clothes.

lakecity55's picture

What is it Xi?

You gorld ring. Gimme.

My Islamic Ring? No way.

Haha, hand over, Bath House.

dsty's picture

plenty of time for the Gold Reserve Act or something similar to be reinacted

goodbye private gold

one world economy comming like a tidelwave

KnuckleDragger-X's picture

Yep, outlawing something always makes it better. Why just look at the drug war...

ghostzapper's picture

Guys driving the trucks have to bring the nail gun that will kill them or does the Cabal bring their own?

ForWhomTheTollBuilds's picture

Back in 71, the Western powers got away with throwing up their hands and saying, "We won't redeem your gold claim tickets because gold is stupid and it's good for the world if we change the rules".

But this only works when you control the worlds largest gold hoard as the US did back then.  If you are a long dead empire with little to no gold, you may be surprised by the response this time around.


Tick-tock mother fuckers.



buzzsaw99's picture

Uncle Rico: Back in '82, I used to be able to throw a pigskin a quarter mile.

Kip: Are you serious?

Uncle Rico: I'm dead serious.

Chuck Knoblauch's picture

Well, this news isn't going to make China happy if it interferes with its purchases.

Looks like China is being provoked into making a move on the chess board.

Just issue the gold backed RMB already, and be done with it!

Mike Honcho's picture

Sovereignty, so old school.

Panic Mode's picture

Long commodities: lead & tungsten !!!

This is it's picture

I was actually so bored that I worked out the average quantity repatriated per day till 2020 ---> about 90kg/day rounded up.

Yea, I guess this is news worthy ~_~

LostAtSea's picture

5 years to bring back 50% of its gold?  Haven't done the math, but what is that, 1 bar a day?

LostAtSea's picture

just did the out to about 4 bars per day for 5 years.


ParkAveFlasher's picture

You forget, Europe still uses horse-drawn wagons for such ceremonial events.  Fresh horses and qualified coachmen are hard to find these days, and gypsy raiders fill the mountains, thus the high maintenance costs of physical gold.  None of this would be necessary if the Austrian CB would simply accept American stawks & pimco's, and this torn loose-leaf IOU signed by the Queen herself, in lieu of accepting the burden of such a barbaric, inconvenient commodity base metal such as gold bullion.

random999's picture

about 1 ton every 14 days. Your bars are pretty big mate, whats your adress again?

CarpetShag's picture

Harhahaaaaa.... that gold at the BOE is in deep storage
And it all depends on what the meaning of "at" is....

stant's picture

OT They cut Fuld off cnbc when fuld got to the .gov part of 08

stant's picture

OT They cut Fuld off cnbc when fuld got to the .gov part of 08

Ace Ventura's picture

Wait a isn't money, according to our intellectual betters such as Dr. Bernankenstein. So why the hell do these european countries care where their yellow metal is stored?! Come to think of it.....why the heck do they even own the stuff, going to the trouble of placing it in ultra-secure vaults under armed guard? Its heavy, hard to find, and you can't make money off it! Fer cryin' out loud, you can't even eat it!

KansasCrude's picture

LOL at best this is some deep storage gold and will need to be mined, stolen, or faked.  Problem is the SOB Banksters have the price so low no one wants to mine anymore than they have to.   Austria is effing stupid if they don't just show up and demand there gold....What a joke.



thunderchief's picture

Amazing it takes until 2020 to bring back about as much gold as China devours in a few weeks.

CPL's picture

Sure they will, lots of people talking about shipping PM's.  No one seems to have received any in eight years.  Austria is about to learn the term 'screwed' like everyone else afterall what are they going to do?  Complain to the ECB?  LOL...whatever.

Charming Anarchist's picture

Yeah, why Switzerland?  Why not just keep it in Austria? 


<<... and instead opting for "neutral" Switzerland....



What part of this game am I missing?