Romania Introduces a Bill to Repatriate its Gold Reserves

The Trend Continues: Romania Introduces a Bill to Repatriate its Gold Reserves

Written by Nathan McDonald, Sprott Money News

The trend is accelerating, just as I predicted it would.

Countries all over the globe are growing anxious, as the geopolitical atmosphere of the world continues to heat up, threatening to hit a boiling point.

Central bankers and government officials who see the world through an unfiltered, non-rose-tinted lens are well aware of this, and are beginning to take the necessary actions required to protect themselves and their homelands.

China, Russia, India, Poland and Turkey are just a few of the countries that have made no secret of their plans for long-term accumulation of precious metals, in a hope to diversify their national reserves out of the U.S. dollar and into hard money.

I, along with many others in the precious metals community, believe that the reason for this is that they can see the writing on the wall and are well aware of what is coming down the road.

They know that the U.S. dollar will not be the reserve currency of the world forever, and from their actions, I believe they know that precious metals will once again take center stage, playing a vital role in the next successor to the throne.

Joining the growing ranks of concerned countries is Romania, a holder of 103.7 tonnes of gold. Or rather, a country that believes they hold 103.7 tons of gold.

As I have stated numerous times, if you don't hold it, you don't truly own it.

Physical possession of a significant portion of your precious metals is vital in these times of growing unrest.

Waking up to this reality, Chamber of Deputies President Liviu Dragnea and Senator Serban Nicolae of Romania have proposed a bill to force the National Bank to repatriate 95 percent of Romania’s gold reserves, which are largely held abroad.

Before you dismiss this as a nothing-burger, take note that this bill is not being introduced by some "small fry" government official. Quite the opposite. Liviu Dragnea is a high-ranking member of the Romanian government.

As per Wikipedia;

"The President of the Chamber of Deputies of Romania is the deputy elected to preside over the meetings in the lower chamber of the Parliament of Romania. The President is also the President of the Standing Bureau of the Chamber of Deputies , and the second in the presidential line of succession, after the President of the Senate."

What this means is that this bill has legs. It will likely move forward, forcing the holders of the Romanian gold reserves to come up with the precious metals—or what is more likely, stonewall them with excuses for the next few years, as they attempt to pool together the metals they rehypothecated to infinity.

Currently, the Treasury of the National Bank of England holds 61 tons of Romanian gold, the Bank of International Settlements in Basel Switzerland holds 5 tons and the other 40 tons are held at the Bank of Romania in Bucharest.

Sadly for the Bank of Romania and the people of the country itself, they have an uphill battle if past results are any indication of what is to come next.

Germany and other countries that have attempted to repatriate their gold have only been successful through great effort and time, highlighting the fact that the gold that is supposed to be in safe holding simply isn't.

The fact is, the majority of gold in trust is not there. It is gone, sold into the open market.

The active suppression of gold over the past decade-plus has required a tremendous amount of physical ammunition, and London has been one of the biggest contributors in this suppression.

The question is, who is next? Because trust me, Romania won't be the last.

The flight towards honest money continues.

 

The Trend Continues: Romania Introduces a Bill to Repatriate its Gold Reserves

Written by Nathan McDonald, Sprott Money News

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COMEX Silver "Market" Dynamics - Craig Hemke (05/03/2019)

Ask the Expert - Chris Howard - February 2019