Repatriation continues, Germany has returned 366 tons of gold from New York and Paris
Germany’s Bundesbank released a new report on the program of repatriation of gold bullion on the results of 2015 Germany, apparently, is still able to achieve their own, Frankfurt has now become the city where the largest reserves of the Bundesbank. During the last year the Central Bank returned to Frankfurt Germany 210 tonnes of gold, of which about 110 tonnes were transported from Paris and about 100 – in New York.
Recall that in 2013 the program began to return 300 tons of gold from the vaults of the Federal Reserve Bank of New York and 374 tons of gold from the Bank of France warehouse in Frankfurt. It is planned to complete this operation by 2020. This in itself is unusual program. All 674 tons of gold could carry a few weeks, or even less if you want it, so it is obvious that the Bundesbank are some limitations that we do not know.
Now Germany’s gold is stored in the following locations:
196.4 tons, or 5.8% – in Paris
434.7 tons or 12.9% – in London
1402.5 tons, or 41.5% – in Frankfurt
Before the start of the program in New York, it kept 45% of the gold Bundesbank (1536 tonnes) in France was 11% (374 tonnes), 13% in the Bank of England (445 tons) and 31% in Frankfurt (1,036 tonnes).
Since January 2013, Germany has returned 366 tons of gold, while in 2013 it was returned to only 5 tons of New York.
It is necessary to take out of New York has 110 tons of gold, but in Paris is 196.4 tons. It is still not clear why in 2013 have returned home so few bars, a total of about 37 tons. But, apparently, now these restrictions have not inhibit desire of Germany.
The main reason for the delay is likely, diplomatic difficulties as previously Bundesbank proven ability to organize a large-scale transportation of gold. So, in the early 2000s. Central Bank of Germany gradually repatriated 950 tons of gold stored at the Bank of England.
It turns out that Germany had been pressured by the United States through diplomatic lines, and this clearly shows how much power does the Fed.
Fed loses control of the gold reserves of the Central Bank of the world?
Since January 2015, November 2015, according to Federal Reserve statistics, out of about 4 million tonnes of storage ounces Fed was derived, or 124 tons of gold. Given that the Bundesbank had brought only 110 tons, which means that others have begun the process of withdrawal of the US gold reserves.
In fact, the return of gold to Germany – an old and rather painful story. Society has repeatedly demanded from the authorities to transfer all the gold reserves at home, especially of gold, which is stored in the United States. It was suggested that the United States may at any time confiscate metal, use it as a lever of pressure on Germany, or even stolen.
Most interesting is that the authenticity of the ingots doubts among some experts. Bundsebank states that all checks are completed, there is no violation, but does not publish the actual number of the ingot, its weight, purity and year of manufacture.
German Central Bank only publishes a list of bars with inventory numbers, which, of course, nothing is said. According to representatives of the regulator, it is sufficient for the purpose of storage, and additional information to publish does not make sense. It is possible that in 2015 part of the ingot was melted or has in any way altered, Bundesbank and now chooses a more cautious approach. It is likely, since the refusal to publish detailed information is alarming.
Representatives of the central bank did not explain why the return of the ridiculous volume by modern standards will take 5 years, and no one can explain why only 5 tons was returned in 2013, and in 2015 already 100 tons. What changed? Even large gold ETFs publish detailed lists of ingots, which indicates their weight, etc. But the Bundesbank prefers limited excuses that information on remelting, weight, factory, etc. It is not required for accounting purposes, even though it’s just a standard practice in the gold mining industry.
During the crisis, gold is the last protection of economic security and protects national sovereignty. During the various crises, gold is used for the development of individual regions and achieve reforms, improving the living and working environment. In some countries, due to the gold it managed to increase the level of international reserves and to give impetus to the private sector.
Now gold is still characterized by features of the economic risk protection, contributing even more important financial security than previously. As a monetary asset gold goes beyond national sovereignty, as a powerful tool for financial commitments. And that is exactly what provides the power reserve currency.