Hungary's Central Bank To Repatriate Its Gold From London

Via GoldBroker.com,

The leadership of the Hungarian National Bank (MNB) has decided to bring back home Hungary’s gold reserves.

Up to now, 100,000 ounces (3 tons) of the precious metal were stored in London, which is in total worth some 33 billion forint ($130 million) at current gold prices.

The decision seems to be in line with international trends as storage of gold reserves out of the country is now considered risky by more and more central banksAustrianGerman, and Dutch central banks are among those who have recently decided to repatriate their gold reserves. According to MNB, this may also further strengthen market confidence towards Hungary.

MNB has been holding gold reserves since its foundation in 1924. Towards the end of World War II, it had been transported to Austria on the famous Gold Train, captured by the Americans, then repatriated in full in 1946.

The highest amount Hungary has ever had was around 65-70 tons at the beginning of the 70s. At the end of the 1980s, however, a decision was made to decrease gold reserves to the lowest possible level and rather to invest in sovereign debts, which as a consequence of the collapse of the Bretton Woods system are considered safer, more liquid and potentially of higher yields. At the beginning of 2010 this tendency changed again and central banks started to accumulate gold as a potential response to the financial crisis.

The Largest gold reserves in the world belong to the US and Germany, while in comparison to other Central-European countries Hungary has one of the tiniest amounts of the precious metal; for instance, Romania and Poland both have 103 tons, and Serbia has 13 tons. Since 1992, Hungary’s activity has remained steady, as the MNB hasn’t bought or sold any of its gold reserves.

Comments

philipat Gen. Ripper Tue, 03/13/2018 - 10:45 Permalink

Not a huge amount but still, let's see how long it takes? London is already overrun with EFP Contracts from Comex. Fortunately, that is just a game which doesn't actually result in the delivery of any physical; more like just a place where Comex delivery obligations go to disappear?

In reply to by Gen. Ripper

RAT005 HenryKissinger… Tue, 03/13/2018 - 11:24 Permalink

They're Hungary for their gold!  3 tons is nothing to dismiss.  Many countries are going to wish they had that much.  Question is if US is one of them?

Population of Hungary is 9.8 million.  100,000 ounces is 0.01 ounce/person.  Hopefully they hold more in private population.  They say there is about 1 ounce of gold/person in the world.  So anyone having more than 1 oz is at least in the 51% elite club :-)

In reply to by HenryKissinger…

Bay of Pigs IH8OBAMA Tue, 03/13/2018 - 11:52 Permalink

No. 

From the link,

"The Mint refines gold and silver from a variety of sources including primary producers, industry, recyclers and financial institutions. Our ISO 9001 accredited facility is world-class, featuring a state-of-the-art silver refinery added in 2005, a modern assay laboratory and a highly streamlined operational system."

In reply to by IH8OBAMA

IH8OBAMA Dr. Dooms-a-lot Tue, 03/13/2018 - 11:32 Permalink

Yeah.  I know Canada produces a lot of gold.  I guess the mint can just buy what they need to refine for coins on the open market.

I bought my nephews and nieces in Abbotsford some fractional Maple Leafs for Christmas thinking they might get scarce.  I guess they'll still need gold prices to move for them to appreciate.

Of course, the kids have probably already cashed them in and spent the money.  That's what youngsters do these days.

In reply to by Dr. Dooms-a-lot

GoldenDonuts BaBaBouy Tue, 03/13/2018 - 15:38 Permalink

We drank the central bank kool-aid decades ago.  We were probably the source of keeping gold prices down before Brown's bottom.  I guess that we would be called Mulroney's skid marks.   Now we have a fool running things who in between Bollywood dances and feminist sweat lodge meetings is trying to confiscate all guns.  (Except from the criminals of course.)

If it weren't for the EU I would say that we have the most ridiculous government in the world.  Canada's dollar is heading for zero and our leadership is worried about imaginary genders and their under representation in board rooms.

In reply to by BaBaBouy

holgerdanske TabakLover Tue, 03/13/2018 - 12:51 Permalink

"Why the F does any country let another hold it's gold?"

Various reasons. All not very good except maybe a total lack of trust between the bankers/politicians and the people on the street.

So your own population can become your greatest enemy.

Much like you maybe feel about your own government being the biggest enemy, and why you would prefer to store in another country to prevent confiscation or theft by force, also known as robbery.

After all, the only reason we listen to our government at the moment is they have the bigger gun. It is certainly not because we like, admire or respect them.

We fear what they can do, that's it!

In reply to by TabakLover

silverer Bill of Rights Tue, 03/13/2018 - 14:14 Permalink

Check out GoldMoney. You take a couple grand, open a Goldmoney account, and buy $2000.00 worth of actual physical which you own and which will be held in the vault of your choice, managed by Brinks, not the banks. Then you simply allocate what you want to have available as cash for the debit card they issue you. So you simply sell $200.00 (takes about one minute on their website to do this) to have available at an ATM and now you have $1,800 in gold still in storage. So if you had the $1,800.00 in your checking account, and gold goes up 20%, you now have a 20% loss on your checking account's $1,800.00 in buying power. In the Goldmoney account, your gold just went up 20%. Beats the criminal banks.

In reply to by Bill of Rights

Rickety Rekt silverer Tue, 03/13/2018 - 15:11 Permalink

DO NOT use Goldmoney. These assholes had the audacity to tell me they couldn't FIND my wire (100% digital trail) and ripped me off $1k. My bank fought with them for 3 months and they never got a cent back. Apparently their recipient bank could not find it, although all details were confirmed by all parties, including dates, time, etc. I spent years dealing wire wires and I can tell you that it is 100% impossible to lose a wire.

You have to trust them to hold Gold for you on the other side of the world but they can't track down a wire? HAH. I drained all the money I had with them. Look at their business reviews. SO many issues, and they threaten to send their lawyers after people who give them bad reviews and suggest it is scam/illegitimate. 

On paper, great idea and I was excited to have some more liquid PM allocation. Reality, their customer service side and management team blow. I know someone who had a bunch of their shares, and asked management about many of the poor reviews, their manager was a complete ass over email basically telling him the reviews are fake and to fuck off so my buddy sold everything. It was either Roy Sebag or Stephan Wieler couldn't remember.

In reply to by silverer