Germany Has Repatriated Over 366 Tonnes Of Gold From New York And Paris

Tyler Durden's picture




 

Submitted by Ronan Manly of BullionStar

Update on Bundesbank Gold Repatriation 2015

Deutsche Bundesbank has just released a progress report on its gold bar repatriation programme for 2015 – “Frankfurt becomes Bundesbank’s largest gold storage location“.

During the calendar year to December 2015, the Bundesbank claims to
have transported 210 tonnes of gold back to Frankfurt, moving circa 110
tonnes from Paris to Frankfurt, and just under 100 tonnes from New York
to Frankfurt.

As a reminder, the Bundesbank is engaged in an unusual multi-year
repatriation programme to transport 300 tonnes of gold back to Frankfurt
from the vaults of the Federal Reserve Bank of New York (FRBNY), and
simultaneously to bring back 374 tonnes of gold back to Frankfurt from
the vaults of the Banque de France in Paris. This programme began in
2013 and is scheduled to complete by 2020. I use the word ‘unusual’
because the Bundesbank could technically transport all 674 tonnes of
this gold back to Frankfurt in a few weeks or less if it really wanted
to, so there are undoubtedly some unpublished limitations as to why the
German central bank has not yet done so.

Given the latest update from the German central bank today, the
geographic distribution of the Bundesbank gold reserves is now as
follows, with the largest share of the German gold now being stored
domestically:

  • 1,347.4 tonnes, or 39.9%, stored in New York;
  • 196.4 tonnes, or 5.8%, stored in Paris;
  • 434.7 tonnes or 12.9% stored at the Bank of England vaults in London;
  • 1402.5 tonnes, or 41.5% now stored domestically by the Bundesbank at its storage vaults in Frankfurt, Germany

In January 2013, prior to the commencement of the programme, the
geographical distribution of the Bundesbank gold reserves was 1,536
tonnes or 45% at the FRBNY, 374 tonnes or 11%, at the Banque de France,
445 tonnes or 13% at the Bank of England, and 1036 tonnes or 31% in
Frankfurt.

The latest moves now mean that over 3 years from January 2013 to
December 2015, the Bundesbank has retrieved 366 tonnes of gold back to
home soil (189 tonnes from New York (5 tonnes in 2013, 85 tonnes in
2014, and between 99-100 tonnes in 2015), as well as 177 tonnes from
Paris (32 tonnes in 2013, 35 tonnes in 2014, and 110 tonnes in 2015).
The latest transfers still leave 110 tonnes of gold to shift out of New
York in the future and 196.4 tonnes to move the short distance from
Paris to Frankfurt.

In the first year of operation of the repatriation scheme during
2013, the Bundesbank transferred a meagre 37 tonnes of gold in total to
Frankfurt, of which a tiny 5 tonnes came from the FRBNY and only 32
tonnes from Paris. Whatever those excessive limitations were in 2013,
they don’t appear to be so constraining now. In 2014, 85 tonnes were let
out of the FRBNY and 35 tonnes made the trip from Paris. See Koos
Jansen’s January 2015 blog titled “Germany Repatriated 120 Tonnes Of Gold In 2014” for more details on the 2014 repatriation.

Those who track the “Federal Reserve Board Foreign Official Assets Held at Federal Reserve Banks” foreign earmarked gold table
may notice that between January 2015 and November 2015 , circa 4
million ounces, or 124 tonnes of gold, were withdrawn from FRB gold
vaults. Given that the Bundesbank claims to have moved 110 tonnes from
New York during 2015, this implies that there were also other
non-Bundesbank withdrawals from the FRB during 2015. Unless of course
other gold was withdrawn from the FRB, shipped to Paris, and then became
part of the Paris withdrawals for the account of the Bundesbank. The
FRB will again update its foreign earmarked gold holdings table this
week with December 2015 withdrawals (if any) which may show an even
larger non-Bundesbank gold delta for year-end 2015.

Notably, the latest press release today does not mention whether any
of the gold withdrawn from the FRBNY was melted down / recast into Good
Delivery bars. Some readers will recall that the Bundesbank’s updates
for 2013 and 2014 did refer to such remelting/recasting events.

Today’s press release does however include some ‘assurances’ from the
Bundesbank about the authenticity and quality of the returned bars:

“The Bundesbank assures the identity
and authenticity of German gold reserves throughout the transfer process
– from when they are removed from the storage locations abroad until
they are stored in Frankfurt am Main. Once they arrive in Frankfurt am
Main, all the transferred gold bars are thoroughly and exhaustively
inspected and verified by the Bundesbank. When all the inspections of
transfers to date had been concluded, no irregularities came to light
with regard to the authenticity, fineness and weight of the bars.”

But why the need to for such a general comment on the quality of the
bars while not providing any real details of the bars transferred, their
serial numbers, their refiner brands, or their years of manufacture?
Perhaps remelting/recasting of bars was undertaken during 2015 and the
Bundesbank is now opting for the cautious approach after getting some
awkward questions last year about these topics – i.e. the Bundesbank’s
approach may well be “don’t mention recasting / remelting and maybe no
one will ask”.

 

Source: BundesbankSource: Bundesbank

Limited Hangout

This bring us to an important point. Beyond the Bundesbank’s
hype, its important to note that the repatriation information in all of
the press releases and updates from the Bundesbank since 2013  has
excluded most of the critical information about the actual gold bars
being moved. So, for example, in this latest update concerning the 2015
transport operations, there is no complete bar list (weight list) of the
bars repatriated, no explanation of the quality of gold transferred and
whether bars of various purities were involved, no comment on whether
any bars had to be re-melted and recast, no indication of which
refineries, if any, were used, and no explanation of why it takes a
projected 7 years to bring back 300 tonnes of gold that could be flown
from New York to Frankfurt in a week using a few C-130 US transporter
carriers.

There is also no explanation from the Bundesbank as to why these 100
tonnes of gold were available from New York in 2015 but not available
during 2014 or 2013, nor why 110 tonnes of gold somehow became available
in Paris during 2015 when these bars were not available in 2014 or
2013.

The crucial questions to ask in my view are where the repatriated
gold that has so far been supplied to the Bundesbank from New York and
Paris has been sourced from, what were the refiner brands and years of
manufacture for the bars, what was the quality (fineness) of the gold,
and are these bars the same bars that the Bundesbank purchased when it
accumulated its large stock of gold bars during the 1950s and especially
the 1960s.

In essence, all of these updates from Frankfurt could be termed
‘limited hangouts’, a term used in the intelligence community, whereby
the real behind the scenes details are left unmentioned, and questions
about the real information is invariably left unasked by the mainstream
media. Overall,  it’s important to realise that the Bundesbank’s
repatriation updates, press releases, and interviews since 2013 are
carefully stage-managed, and that the German central bank continually
dodges genuine but simple questions about its gold reserves and the
physical gold that is being transported back to Frankfurt.

For example, in October 2015, the Bundesbank released a partial
inventory bar list/weight list of it gold holdings. At that time, on 8
October 2015, I asked the Bundesbank:

Hello Bundesbank Press Office, 

Regarding the gold bar list published by the Bundesbank yesterday (07 October https://www.bundesbank.de/Redaktion/EN/Topics/2015/2015_10_07_gold.html), could
the Bundesbank clarify why the published bar list does not include,for
each bar, the refiner brand, the bar refinery serial number, and the
year of manufacture, as per the normal convention for gold bar weight
lists, and as per the requirements of London Good Delivery (LGD) gold
bars

Bundesbank bar list:https://www.bundesbank.de/Redaktion/EN/Downloads/Topics/2015_10_07_gold.pdf?__blob=publicationFile 

From the London Good Delivery Rules, the following attributes are required on LGD bars http://www.lbma.org.uk/good-delivery-rules

Marks:   

Serial number (see additional comments in section 7 of the GDL Rules)    

Assay stamp of refiner    

Fineness (to four significant figures)    

Year of manufacture (see additional comments in section 7 of the GDL Rules)”

 “The marks should include
the stamp of the refiner (which, if necessary for clear identification,
should include its location), the assay mark (where used), the fineness,
the serial number
(which must not comprise of more than eleven
digits or characters) and the year of manufacture as a four digit
number unless incorporated as the first four digits in the bar number.
If bar numbers are to be reused each year, then it is strongly
recommended that the year of production is shown as the first four
digits of the bar number although a separate four digit year stamp may
be used in addition. If bar numbers are not to be recycled each year
then the year of production must be shown as a separate four digit number.”http://www.lbma.org.uk/assets/market/gdl/GD_Rules_15_Final.pdf

Best Regards, Ronan Manly

 

The Bundesbank actually sent back two similar replies t the above email:

Answer 1:

“Dear Mr Manly, 

Thank you for your query. Information
on the refiner and year of production are not relevant for storage or
accounting purposes, which require the weight data, the fineness and a
unique number identifying each bar or melt. The Bundesbank has all of this information for each of its gold bars. By contrast, particulars relating to the refiner and year of production merely provide supplementary information. They tell us part of the gold bar’s history but do not describe its entire ‘life cycle’.”

Yours sincerely,

DEUTSCHE BUNDESBANK Communication

 

Answer 2:

“Dear Mr Manly,

The crucial data for storage and
accounting purposes are the weight, the fineness and a unique number
identifying each bar or melt. The Bundesbank has all of this information
for each of its gold bars, which it records electronically and also
makes available to the public. In addition to the data on weight and
fineness, the Bundesbank, the Bank of England and the Banque de France
identify gold bars exclusively on the basis of internally assigned
inventory numbers and not using the serial numbers provided by the
refiners. These custodians do not classify the bar numbers stamped onto
the gold bars by the refiner as individual inventory criteria. They do
not use the refiner’s bar numbers as these are not based on a unique
numbering system that can be used for identification purposes. Stating
the refiner and the year of production is not required for storage or
accounting purposes.”

Yours sincerely, 

DEUTSCHE BUNDESBANK Communication

 

Even the large gold ETFs produce detailed weight lists of their bar
holdings, so you can see from the above answers that the Bundesbank is
resorting to flimsy excuses in its inability to explain why it is not
following standard practice across the gold industry.

For additional Bundesbank’s prevarications on its gold bars, please see my blog “The Keys to the Gold Vaults at the New York Fed – Part 3: ‘Coin Bars’, ‘Melts’ and the Bundesbank” in a section titled “The Curious Case of the German Bundesbank”.

Finally, see BullionStar guest post from 8 October 2015 by Peter Boehringer, founder of the ‘Repatriate our Gold’ campaign -Guest Post: 47 years after 1968, Bundesbank STILL fails to deliver a gold bar number list“.
This guest post adeptly takes apart the Deutsche Bundesbank’s
stage-managed communication strategy in and around its gold repatriation
exercise, and asks the serious questions that the mainstream media fear
to ask.

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Wed, 01/27/2016 - 21:51 | 7106382 Father Thyme
Father Thyme's picture

(re)Patriate. Patriach. Father. Fuhrer.

Gold, re-fuhrered.  :) (Fash!)

Wed, 01/27/2016 - 21:54 | 7106400 Harlequin001
Harlequin001's picture

At least the auditors can now fit through the Fed door and count thge remaining bars...

Wed, 01/27/2016 - 21:54 | 7106411 Soul Glow
Soul Glow's picture

You mean the tungsten bars.

Wed, 01/27/2016 - 21:59 | 7106429 kliguy38
kliguy38's picture

why in the hell do they want that barbarous relic?? i just don't get it

Wed, 01/27/2016 - 22:00 | 7106432 Father Thyme
Father Thyme's picture

Conan's no relic! Neither is gold.

Wed, 01/27/2016 - 22:04 | 7106451 espirit
espirit's picture

Damn.

Costs a lot to keep those US bases open.

Wed, 01/27/2016 - 22:23 | 7106545 CheapBastard
CheapBastard's picture
eBay Lends Name to Gold Bars

 

You can now purchase real gold bars on eBay that bear the eBay logo. The online marketplace has been fascinated with bullion going back to at least 2011, and now you can find eBay-branded gold and silver bars for sale on its marketplace.

Coin World first wrote about the deal, saying the new products debuted on January 19, 2016. It said the two products currently available are a 1-ounce .9999 fine gold bar fabricated by the Perth Mint and a 10-ounce .9999 fine silver bar produced by the Royal Canadian Mint.

 

http://www.ecommercebytes.com/cab/abn/y16/m01/i26/s02

 

Ebay seems to be thinking ahead of the rush by the peeples to buy the Foolish Metal as a good way to preserve your wealth as currency wars devalue the paper fiat in your wallet and savings account.

Wed, 01/27/2016 - 23:06 | 7106732 Anopheles
Anopheles's picture

OR.........

 

Ebay cashes in on people wanting to buy gold at any price.... 

Wed, 01/27/2016 - 23:22 | 7106798 bigkahuna
bigkahuna's picture

:-)

someone has to do it

Wed, 01/27/2016 - 23:38 | 7106856 847328_3527
847328_3527's picture

I think Ebay may be on to something here. If they limit mintage to lets say, <5,000 or so, they may appreciate significantly since the Ebay+Perth Mint names are, shall we say, "golden."

 

Lets face it, collectors pay big bucks for name items like first coke bottles, etc. And Ebay has a Big Name imo. They need to 1) limit mintage and 2) change the bar a little each year so there is a reason to buy a different looking each years' bars. That's a big disadvantage ot buffaloes..they never change. The Luners in contrast are different each year as are the Pandas. I'm not expert but that makes sense to me.

 

jmho.

Thu, 01/28/2016 - 00:25 | 7106986 BLOTTO
BLOTTO's picture

On the Rothschild owned theEconomist 2016 Prediction cover -

.

Merkel is wearing a gold shirt.

.

Hillary Cuntlin is blacked out, except for a tiny gold stud.

.

And a gold Euro coin falling to the ground via a Euro printed parachute.

http://themillenniumreport.com/wp-content/uploads/2015/12/uPdww6f.jpg

.

You tell me what that means?

Thu, 01/28/2016 - 02:51 | 7107279 thesonandheir
thesonandheir's picture

Germany will melt these down to produce it's new sharia compliant dinar.

Thu, 01/28/2016 - 11:30 | 7108320 XuscitizenSweden
XuscitizenSweden's picture

Hey *BLOTTO *

Isn't that 'Hillary Cuntlin' misspelled?

I thought it was Hillary Cuntlick.

https://duckduckgo.com/?q=lesbian+hillary+clinton+Huma+Abedin&iax=1&ia=images

Thu, 01/28/2016 - 00:25 | 7106989 Charming Anarchist
Charming Anarchist's picture

Most businesses could do the same tomorrow.

I think NHL hockey teams should issue their own silver medallions embedded within a drilled out hockey puck. Offer them as cheap collector items.

Thu, 01/28/2016 - 05:13 | 7107411 Cadavre
Cadavre's picture

Ever have the feeling that some staffer with pen and pad sitting in a starbucks carved off one of the tunnels in DC's underground maze of hidy holes is considering an outline for a proposal to false flag nuke germany and blame it on iran, china, n. korea. Any lamestream boogeyland would do.

Kill two birds with one stone: First, it would give them pesky germans something other than the always tedious slippage and pushback of the gold delivery schedule, and, secondly, melt the the tungsten in the bars already delivered.

I've crossed the pond, from NYC to Germany. It takes less than  5 fucking days. 

NATO's castrated gold pillage rut can't bonk the vaults of defenseless little states raped by goldman.

Everybody knows what's going on. THE FED USED THE GOLD TO COVER MASSIVE SHORT POSITIONS, TO DEVALUE THE USD AND KEEP THE DOLLAR CARRY-GO-ROUND AFLOAT LIKE A TURD IN BARRIO TOILET.  (either that, ... or ... to juice the FED's "off minutes" bull leveraged tungsten ETFs).

Maybe it's time to invade JP Morgan somewhere in de UK - they gotz penty of de shiney.

But most likely - the gold has vanished down a spiraling vortex rehypothecation, into another dimension that current technology cannot penetrate. De devil stole de german gold - datz it! 

Thu, 01/28/2016 - 09:42 | 7107831 RabbitChow
RabbitChow's picture

But do you get free shipping?

Wed, 01/27/2016 - 23:34 | 7106842 Bananamerican
Bananamerican's picture

366 tonnes will buy a lot of halal TV dinners

Wed, 01/27/2016 - 22:17 | 7106515 Donald J. Trump
Donald J. Trump's picture

To pay for the migrant refugees.

Wed, 01/27/2016 - 22:25 | 7106560 RaceToTheBottom
RaceToTheBottom's picture

I am going to hide my gold in a buried train, maybe in Poland, I have not decided yet...

Wed, 01/27/2016 - 23:17 | 7106778 Calmyourself
Calmyourself's picture

How many have a Libyan stamp on them and how many have Ukraine stamped on them?

Thu, 01/28/2016 - 02:46 | 7107274 Kirk2NCC1701
Kirk2NCC1701's picture

"You mean the tungsten bars."

No Problem: Just mint them into gold-plated Euro coins, and give them as a Parting Gift for all Refugees who leave Germany. Be sure to fingerprint them on the way out, lest they use a revolving door policy.

Wed, 01/27/2016 - 21:53 | 7106396 Rock On Roger
Rock On Roger's picture

Almost ready for invasion and confiscation.

I wonder if Hitlery will cackle when Merkel gets gaddafied?

Wed, 01/27/2016 - 21:54 | 7106407 jcaz
jcaz's picture

Yep- just an excuse to go over and "repatriate" it once again, with gusto.....

Wed, 01/27/2016 - 21:55 | 7106413 Soul Glow
Soul Glow's picture

How much of that 366 was tungsten?

Wed, 01/27/2016 - 22:08 | 7106472 Casey Jones
Casey Jones's picture

Easy to test for if you're looking for it, which certainly the Germans are. Kind of like testing for thermite or any other explosive residue in, say, a skyscraper collapse. It's obvious if you look for it.

Wed, 01/27/2016 - 23:03 | 7106714 Soul Glow
Soul Glow's picture

Ok so they get the delivery, they test it, it turns out to be tungsten.  What then?  Call the Fed and say they don't like what they recieved?  Do you know how the Fed would respond?

AHAHAHAHA!

Wed, 01/27/2016 - 23:57 | 7106906 Casey Jones
Casey Jones's picture

Gee, I don't know, test it in ny?

Thu, 01/28/2016 - 00:56 | 7107086 sun tzu
sun tzu's picture

No access to the gold in NY

Wed, 01/27/2016 - 23:08 | 7106739 MalteseFalcon
MalteseFalcon's picture

The Germans are testing the gold for impurities due to the addition of Wolfram.

Thu, 01/28/2016 - 02:35 | 7107250 OldPhart
OldPhart's picture

First you actually have to want to look.

Wed, 01/27/2016 - 22:58 | 7106698 sleigher
sleigher's picture

"How much of that 366 was tungsten?"

Or Libyan or Ukrainian?

Wed, 01/27/2016 - 23:22 | 7106797 Calmyourself
Calmyourself's picture

Great minds...

Thu, 01/28/2016 - 00:08 | 7106933 Lore
Lore's picture

Yeah. How much actually belongs to the people of Iraq, or Mali, or Venezuela, or...?  The only reason the bar numbers would not be released is if they have multiple owners. 

Thu, 01/28/2016 - 09:45 | 7107844 Agstacker
Agstacker's picture

What I was going to say, the fed had us invade 2 countries and steal their gold in order to give Germany the gold which was sold off to China long ago.

Thu, 01/28/2016 - 15:58 | 7109984 zippedydoodah
zippedydoodah's picture

366 Tonnes of Gold is worth just over $13 Billion.

If the Fed was printing $80 Billion every month then why on Earth would they go to war for a poxy little amount of $13 Billion? They could just get Belgium to buy it for them on the open market.

 

Wed, 01/27/2016 - 21:54 | 7106403 Soul Glow
Soul Glow's picture

366 down, 4k to go.  Good luck with that, Germany.

Wed, 01/27/2016 - 21:55 | 7106412 Dragon HAwk
Dragon HAwk's picture

ok they got the bars back, but who actually owns them?

Wed, 01/27/2016 - 21:55 | 7106416 Soul Glow
Soul Glow's picture

They do.  They own all 366 tonnes of that gold plated tungsten.

Wed, 01/27/2016 - 22:16 | 7106510 Casey Jones
Wed, 01/27/2016 - 23:25 | 7106725 Soul Glow
Soul Glow's picture

First of all why would they test?  Really think about that one.  Why would they test gold bars recieved from one of their allies?  THINK ABOUT THAT!

And if they were tungsten?  What would they do?  Go public?

HA!

Wed, 01/27/2016 - 23:58 | 7106912 Casey Jones
Casey Jones's picture

They're only incompetent in public.

Thu, 01/28/2016 - 01:08 | 7107112 stacking12321
stacking12321's picture

allies?

usa is not really much of an ally, they fuck germany pretty hard whenever it's convenient.

if usa was trustworthy, why would germany even insist on getting the gold back?

germany is fairly conservative fiscally, they know a deadbeat when they see one.

yes, if usa delivers tungsten, they absolutely should be exposed as fraudsters and held to account.

belief in the king dollar is a con game (confidence game) - enough people pipe up and say the emperor has no clothes and the game is over.

Wed, 01/27/2016 - 21:58 | 7106425 NoDebt
NoDebt's picture

Was this article written in iambic pentameter?  

Wed, 01/27/2016 - 22:07 | 7106468 Yen Cross
Yen Cross's picture

 WTF?

 Iambic pentameter refers to a certain kind of line of poetry, and has to do with the number of syllables in the line and the emphasis placed on those syllables. Many of Shakespeare's works are often used as great examples of iambic pentameter.

 Only Yen is allowed to play on the railroad tracks, in the middle of the night. :-D

Wed, 01/27/2016 - 22:23 | 7106550 NoDebt
NoDebt's picture

Look at the paragraph formatting, Yen.  Tell me it doesn't ook more like verses of poetry than auto-line-wrap prose.

Wed, 01/27/2016 - 22:56 | 7106693 Yen Cross
Yen Cross's picture

   I agree, NoDebt.

       I was complementing your medieval dialect.

 Apparently the "Unknown Junker", is stirring the pot.

 I love your command of " Grand National". ;-)

Wed, 01/27/2016 - 22:28 | 7106570 Sanity Bear
Sanity Bear's picture

no, but if you turn the audio off it does match up perfectly with Dark Side of the Moon

Wed, 01/27/2016 - 22:04 | 7106452 holgerdanske
holgerdanske's picture

You will get more as soon as we find some more countries to liberate. Things did not work out in Syria.

Wed, 01/27/2016 - 22:05 | 7106455 cpgone
cpgone's picture

Test each bar

Wed, 01/27/2016 - 22:05 | 7106456 Mr. President
Mr. President's picture

Is this the 1st mention of this since Germany was refused their gold?

Are people picking and choosing when these stories break?  Or is this really the 1st we've heard since zh told us that Germany was getting squat of 'ttheir gold ' back?

 

These last few days of headlines are seriously making me wonder where zh actually stands (these days..since the new "commercial sponsors")

 

;) 

Oh..snap..just sayin..maybe I'll dissappear again. 

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