Gold Withdrawals From The NY Fed Accelerate, Hit 388 Tons Since 2014

Tyler Durden's picture

First it was Germany who redeemed 120 tons of physical gold from the NY Fed in 2014; then it was the Netherlands who "secretly" redomiciled 122 tons of gold; then last May, we learned that Austria would be the third "core" European nation to repatriate most of its offshore gold, held primarily in the Bank of England, redepositing it in Vienna and Switzerland.

That was just the beginning. Thanks to the latest NY Fed data, we now know that beginning in 2014 and continuing through yesterday, the gold "bleeding" from the vault located 90 feet below street level at 33 Liberty Street  is not only continuing but accelerating.

As the chart below shows, while central banks assure the population that there is nothing to worry about when it comes to paper money, which may or may not soon be banned if certain Harvard economists have their way, they have been quietly accelerating their withdrawals of gold from the biggest centralized depository of global gold in the world: the New York Federal Reserve.

According to the Ny Fed, in the seven months ended July 2016, there were a total of 87 tons of gold withdrawals, 25% more than the 69 tons withdrawn in the same period in 2015, and 60% more than the 55 tons withdrawn in 2014. As of July 31, the NY Fed held 5,807 tons of gold in custody, well below the 6,606 "old normal" that was parked at the Fed until withdrawals started in early 2007.

Just as remarkable, since the current round of monthly withdraws from the NY Fed started in February of 2014, there has been a total of 388 tons of gold redeemed by foreign central bank holders over a span of 30 months, which is just 20 tons shy of the previous burst of withdrawals which started in March of 2007, with the emergence of the subprime crisis, and culminating in November 2008 with the bailout of AIG.

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thefinn's picture

I also don't understand the idea of "leasing gold". lol


sinbad2's picture

In this context, leasing is a way of selling gold which doesn't belong to you.

Most of the gold that other nations stored at the Fed has been leased(sold) to others.

That's why the US has only allowed a paltry few hundred tons to be redeemed, they sold the gold belonging to Germany, Italy, etc.

Hillarys Server's picture

Yes, the hubris of America is unspeakable.

If the US was a uni-power in a uni-polar world it could act like a bully and freeze Russia, freeze Iran and freeze left and right.

And kill leaders who want to do things in gold or local currencies.

But as China, Russia, the BRICS and others get even stronger, any country which isn't being blackmailed by needs for military defense or whatever will dump the bully.

It's like the cartoon movie Frozen. Everything the sister touched turned to ice.

People got sick of everything being frozen at whim and she eventually ended up living alone in a far away mountain.