Switzerland Wants Its Gold Back From The New York Fed

Tyler Durden's picture

Earlier today, we reported that Germans are increasingly concerned that their gold, at over 3,400 tons a majority of which is likely stored in the vault 80 feet below street level of 33 Liberty (recently purchased by the Fed with freshly printed money at far higher than prevailing commercial real estate rates for the Downtown NY area), may be in jeopardy,and will likely soon formally inquire just how much of said gold is really held by the Fed. As it turns out, Germany is not alone: as part of the "Rettet Unser Schweizer Gold", or the “Gold Initiative”: A Swiss Initiative to Secure the Swiss National Bank’s Gold Reserves initiative, launched recently by four members of the Swiss parliament, the Swiss people should have a right to vote on 3 simple things: i) keeping the Swiss gold physically in Switzerland; ii) forbidding the SNB from selling any more of its gold reserves, and iii) the SNB has to hold at least 20% of its assets in gold. Needless the say the implications of this vote actually succeeding are comparable to the Greeks holding a referendum on whether or not to be in the Eurozone. And everyone saw how quickly G-Pap was "eliminated" within hours of making that particular threat. Yet it begs the question: how many more international grassroots outcries for if not repatriation, then at least an audit of foreign gold held by the New York Fed have to take place, before Goldman's (and New York Fed's) Bill Dudley relents? And why are the international central banks not disclosing what their people demand, if only to confirm that the gold is present and accounted for, even if it is at the Federal Reserve?

Full disclosure via the Initiative's website:


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nope-1004's picture

One prolem.  NYFed dun got it!

 If EVERYONE asked for their gold, ummmm.......   Houston!

Pinto Currency's picture

This will be game over - expect ridiculous stalling tactics, fires at the NY Fed, terrorist attacks etc. to delay.

Popo's picture

I can see it now... This will be just like MF Global. Maria Bartiromo will be on CNBC insisting that "no one actually knows where the gold went".

Global Hunter's picture

blame a clerk in back office/settlements or a rogue trader on the prop desk.  Meanwhile Congress in hearings while looking for the missing gold can take partisan shots at their opponents and blame them for the missing gold while proposing that their new financial act and regulations would have kept the gold safe.  Rinse repeat.

Pladizow's picture

News Alert: On behalf of the US and Kenya, Obama has declared both Germany and Switzerland, terrorist States!

The US military will move swiftly to liberate all Heineken and Toblerone!

Nassim's picture

I am sure you meant Löwenbräu - Heineken is Dutch.

igordin's picture

You sure that the president knows that? We might end up liberating Stella Artois!

Hugo Chavez's picture

Who the fook is st pauli girl then?
I want to liberate her.
She is hotter than Tehkneek
and less likely to have a BSD when I try to reach down.

Manthong's picture

Their gold is perfectly save with us..

It’s securely tucked away right next to all of Comex and SLV’s silver.

zaphod's picture

Europe agreed post WWII to store their gold with the FED and use the dollar.

This arrangement was conditional in post war negotiations and considered permanent. All European countries understood they would not see that gold again, it was simply under their ownership in name only and not physical ownership.

The EU can ask for it back now, but I doubt the FED will give it to them.

clymer's picture

If you really wanted to imitate MDB, you would have included some flattery about Bernanke and his little pointy-nosed muppet, tiny Tim. Perhaps rephrased the sentence to read something like,

"This arrangement was unconditional in post war negotiations and considered permanent. All European countries understood they were gaining in exchange for this barbarous relic the protection of the benevolent USA and the supremely genius banking cartel which manages her finances at the FED. By doing so we allowed them to ..evolve"

jcaz's picture

The ultimate Ponzi......

HoofHearted's picture

And now the Swiss say:

"All our gold are belong WITH us."

Harlequin001's picture

Too Late dudes, Chavez has already been there...

redpill's picture

What's that noise?  I swear it sounds like dominos falling...

TruthInSunshine's picture

Dominos falling is the correct answer.


This is almost entirely the result of The Bernank's fevered passion for creating massive volumes of digital Federal Reserve Notes.

The shit that Bernanke has induced is piling up like a big radioactive Jenga stack, and last one out is a mutated freak.

No one trusts anyone anymore, and no one trusts anything under the stewardship of El Bernankio.

You're doing a heckuva' job, Bernankincide.

Harlequin001's picture

Well, I shouldn't complain too much, after all, he's made me rich, but at what cost...

TruthInSunshine's picture

...you better know when to hold, and know when to fold 'em...

Some say, that without very, very good timing, many proceeding under the illusion that The Bernank has made them rich will awaken to a reality one day that it was all just another bubble, and it slipped right through their fingers and 'Popped!'

Of course, the chorus of "[I]t's different this time from the sell-siders grows louder each blathering day. CRM surely has room to run, let alone not implode, as just one example.

...know when to walk away, know when to run...


"Stock prices have reached what looks like a permanently high plateau."

--Irving Fisher

   October 21, 1229


Jim Glassman (of Dow 36,000 fame, written in 1998) and James Cramer are no Jesse Livermores - and Livermore, the consumate operator, who actually recognized the stock market ponzi for what it was (his great strength), and probably successfully traded more pivots as a % of his trades than any person since, ended up blowing his brains out.

Harlequin001's picture

Fold what? All my assets are now in physical gold and silver and I have no intention of selling just yet. I fully expect that both will rise and spike exponentially but that doesn't matter. I buy to hold until it is money once again and then to have capital to trade the bullion market as gold once again begins to flow through financial markets. There is considerable imbalance in gold markets as you know. A huge opportunity to benefit from it through trade will present itself when it begins, and when governments finally realise that punitive tax rates don't create jobs. Until then I need to keep it safe, because to get there the high taxes will need to come first, and I don't intend to get caught out with that one either.

Those who have sense know that success lies not in your ability to make 'every dollar', but to make most of them; long term success lies in keeping it long enough to be able to use it. My intent is to make sure that my family and future generations have both access to capital and the prospect of being more than mere cannon fodder in future. When gold spikes I will hold it until it settles and then spend it as I need it. I will not be disheartened because I didn't sell it at the top. I won't need to. This, to me, is the greatest opportunity in history to get, and to put future generations of my family ahead of the game, and yes, I agree  'the illusion that The Bernank has made them rich will awaken to a reality one day that it was all just another bubble, and it slipped right through their fingers and 'Popped!'. Those who think they have pensions, have equity in their houses and have wealth in paper will awaken to find they have nothing. When they do, I don't intend to be around...

and I need my wealth in a form that is portable when I go. Did I just define paper money? Hell no...

TruthInSunshine's picture

My bad for misinterpreting what you stated originally.

You're a sharp cookie, IMO.

I don't mean that in a patronizing or condescending way.

Peace out, my brother.

Harlequin001's picture

Good health, wealth and happiness and all that,

and not necessarily in that order...

flacon's picture

MCCAIN: "Bomb, Bomb, Bomb, Bomb, Bomb, Switzerland!"

Harlequin001's picture

Surely, Fort Knox would be a better target...

Given the current climate...

fourchan's picture
Well let me tell you 'bout the way she looked
The way she'd act and the color of her hair
Her voice was soft and cool
Her eyes were clear and bright
But she's not there

Well no one told me about her, what could I do
Well no one told me about her, though they all knew
But it's too late to say you're sorry
How would I know, why should I care
Please don't bother trying to find her
She's not there

bernorange's picture

China/Hong Kong repatriated gold in 2009

Chavez/Venzuela repatriated gold in 2011

Swiss in 2012?  Who's next?

Reptil's picture

eeehmmm Which was part of what arrangement exactly? And how was Switzerland involved in this? They were not part of any Marshall Plan. In fact they never lost souverignity because of an occupation. So I doubt it. But please post, this could be interesting.

antaresteleko's picture

Zaphod, that agreement is not permanent anymore since Nixon unilaterally broke it when he took the USD off the gold standard...

Marty Rothbard's picture

@ Zaphod  I don't know if the agreement to keep European gold in the Fed's vaults was considered permenant, but I know the Bretton Woods accords were.  We all know what happened there.  I certainly hope Germany, and the Swiss demand their gold.  It may be the closest thing to an audit of the Fed we get for a long time.   I know that Venezuela is in the process of repatriating their gold.  Does anyone know if the Fed was storing some of it.  I know part of it was in London vaults.

cannonfodder's picture

Bretton Woods assumed that the US dollar was going to be redeemable in GOLD.  That hasn't been the case since late 1971.  Once the agreement is fundamentally altered, it no longer applies.  There is no justification for the US government or the Federal Reserve to refuse to return the asset to the legal owners if they request its return.

Normalcy Bias's picture

We'd liberate it, and then turn it into American piss beer, coasting off of the label for as long as possible...

Citxmech's picture

Mmmmmmmm. . . . Toblerone!

Ar-Pharazôn's picture

you can see what's happening in afghanistan.... imagine to invade an highli developped mountain country... this will be worse than vietnam for usa

putaipan's picture

i guess someone besides ol'blankenfein might be taking the 15 trillion dollars worth of "conterfiet" gold bonds seriously...

putaipan's picture

always wondered how that happenned.....

The Disappointed's picture

...otherwise known as rehypothecation.

Long-John-Silver's picture

Gold and Silver are drawn to water by great natural forces. Both will blast out the bottom of a boat in order to get back to the earth from which they were forcefully removed. Never, ever take Gold and Silver on board a vessel of any type. Disaster awaits all how do. /SARC

Fred Hayek's picture

Don't be so down.
Remember what the man said.
In Italy, for 30 years they had warfare, terror, murder and bloodshed but they produced Michaelangelo, Leonardo DaVinci and the Renaissance. In Switzerland, they had brotherly love. They had 500 years of democracy and peace and what did that produce? The cuckoo clock.