The Deutshe Bundesbank has responded to inquiries regarding holding the majority of Germany’s gold reserves in Paris, London, and New York.
The Bundesbank is apparently attempting to calm the panic over Germany’s gold instigated by the Federal Accountability Office, stating,

”We do not have the slightest doubt that our holdings in New York and Paris are also made up of the purest fine gold. We have at our disposal fully documented lists of the bars, and our partner central banks send us every year confirmation not only of the bars’ existence but also of their quality.’We had nothing but the best of experiences with our partners in New York, London and Paris...
There was never any doubt about the security of Germany’s gold. In future, we wish to continue to keep gold at international gold trading centres so that, when push comes to shove, we can have it available as a reserve asset as soon as possible.
For years, our gold has been stored by the highly esteemed central banks of the United States, Great Britain and France without provoking any complaints whatsoever – not by just any fly-by-night operators. Part of the debate in Germany has veered somewhat towards the absurd.”

h/t ZH

From the Bundesbank:

Gold reserves stored securely

Questions posed by DPA to Carl-Ludwig Thiele, Member of the Executive Board of the Deutsche Bundesbank

How much German gold is stored in the United States, how much in Frankfurt and how much in Great Britain?

The Deutsche Bundesbank keeps part of its gold holdings in its own vaults in Ger-many, while other stocks of gold are stored at the central banks located in major gold trading centres. Specifically, these are

  • Deutsche Bundesbank, Frankfurt am Main: 1,036 tonnes (= 31%)
  • Federal Reserve Bank of New York (Fed): 1,536 tonnes (= 45%)
  • Bank of England, London: 450 tonnes (= 13%)
  • Banque de France, Paris: 374 tonnes (= 11%)

Isn’t storing gold abroad an expensive anachronism?

The New York Fed and the Banque de France also offer to store gold holdings for other central banks free of charge. The Bank of England charges warehousing fees amount-ing to roughly €500,000 per year. Storage in the Bundesbank’s own vaults, too, involves costs. Matters of cost, however, are not the sole consideration in determining the choice of storage facility. The usability of gold as a reserve asset and storage security are much more important. During repeated visits to New York, London and Paris, our internal auditors have satisfied themselves that the security precautions in place there meet the same high stan-dards as those in Frankfurt.

What makes the Bundesbank so certain that German gold holdings are being stored securely abroad – even though, according to the German Federal Court of Auditors, these reserves have never been “physically inventoried and checked for authenticity and weight” by the Bundesbank itself or by independ-ent auditors?

At the beginning of the last decade, we brought 930 tonnes of gold to Frankfurt from London and subjected it to a painstaking inspection. Part of the gold was melted down in order to create new bars which conform with the “Good Delivery Standard” which is customary nowadays in gold trading. Of the 930 tonnes of gold, not one gram was missing. We do not have the slightest doubt that our holdings in New York and Paris are also made up of the purest fine gold. We have at our disposal fully documented lists of the bars, and our partner central banks send us every year confirmation not only of the bars’ existence but also of their quality. We receive confirmation of our gold reserves, measured in troy ounces. The Bundesbank has been drawing up its accounts on this basis since it came into existence. All external auditors have confirmed our accounting practices outright since then.

Why doesn’t the Bundesbank bring the gold back to Germany?

The reasons for storing gold reserves with foreign partner central banks are historical since, at the time, gold at these trading centres was transferred to the Bundesbank. To be more specific: in October 1951 the Bank deutscher Länder, the Bundesbank’s predecessor, purchased its first gold for DM 2.5 million; that was 529 kilograms at the time. By 1956, the gold reserves had risen to DM 6.2 billion, or 1,328 tonnes; upon its foundation in 1957, the Bundesbank took over these reserves. No further gold was added until the 1970s. During that entire period, we had nothing but the best of experiences with our partners in New York, London and Paris. There was never any doubt about the security of Germany’s gold. In fu-ture, we wish to continue to keep gold at international gold trading centres so that, when push comes to shove, we can have it available as a reserve asset as soon as possible. Gold stored in your home safe is not immediately available as collateral in case you need foreign currency. Take, for instance, the key role that the US dollar plays as a reserve currency in the global financial system. The gold held with the New York Fed can, in a crisis, be pledged with the Federal Reserve Bank as collateral against US dollar-denominated liquidity. Similar pound sterling liquidity could be obtained by pledging the gold that is held with the Bank of England.

In the statement it issued on Tuesday, the Bundesbank said that it would “take up suggestions by the FCA wherever possible.” What does that mean specifically? When, and at what intervals, will Bundesbank auditors physically view the gold being held abroad?

The Bundesbank has decided to strive for a more balanced distribution of gold re-serve holdings at home and broad, thereby taking increased account of gold’s function of preserving trust and confidence. After all, reserve assets have psychological significance, so to speak. In the next three years, we will repatriate 50 tonnes of gold annually from New York to Germany. That will give us the opportunity to inspect these bars, melt them down and convert them into “Good Delivery Standard” bars. That will therefore be a sort of spot check. Moreover, we are currently in the middle of discussions about a further expansion of our rights to conduct audits in New York, London and Paris. But, please: for years, our gold has been stored by the highly esteemed central banks of the United States, Great Britain and France without provoking any complaints whatsoever – not by just any fly-by-night operators. Part of the debate in Germany has veered somewhat towards the absurd.

 

  1. In other words? They don’t have it or can’t find it.. Germany is going to cause some serious problems. Whew! Besides these other nations knowing that those at the Fed stole their Gold. This could be the move upward for Gold & Silver.

    • NR, agreed. These bars exist, except there are so many claims to each one that when the panic starts, it leads to war because ownership cannot be determined without doubt. Hell, it’s a good scheme if you want global war and the j**s are good at setting that up.
      I also think we won’t have an up move until the whole system goes splat.

    • If everyone doesn’t have enough physical gold from the bullion banks, then they would look for other alternative precious metals such as silver. Platinum will also replace gold if there aren’t enough gold because its price and density are about the same as gold.

    • Our government is honest because the majority of the population doesn’t know the fundamentals of the economy so they don’t really care that much about what he’s doing. When the Canadian government sold its gold, almost no one cared about it!

  2. Only 2600 tons or so of mined gold is added to supply each year. There is nowhere enough gold mined each year to cater for the massive demand coming out of Asia, the middle east, India etc. China and Russia do not allow their combined 600 tons of gold produced domestically to be exported so that takes new available mined supply down to about 2000 tons. China looks on course to also import 750 tons or so this year. India will likewise import a similar figure. Central banks are expected to purchase 450-500 tons of gold this year. Just the purchases by China, India and the emerging central banks gold will account for the remaining 2000 tons of new supply of gold available in the market. Where on earth is the gold going to come from to satisfy total global demand? There is clearly a massive supply deficit.
    The lack of any openess by Western Central Banks confirms almost beyond any shadow of a doubt that their gold has been leased, swapped or rehypothecated many times over. The German gold may well be there at the New York Fed, London and Paris but unfortunately I think they will find that when the music stops “he who holds the gold owns the gold”.

    • There is also a lot of gold that comes from recycling (ie. from jewellery) and whenever there is a physical buyer of gold (in bullion form), there is a physical seller. 

      The dealers in my city say they roughly buy as much gold/silver as they sell.

    • I’d like to see if the serial numbers of bars stored 30-40 years ago are still on the list AND are still in the Fed’s vault.  If the bars are different now than from then, except perhaps for a layer of dust, then there is a problem. 

  3. “The reasons for storing gold reserves with foreign partner central banks are historical since, at the time, gold at these trading centres was transferred to the Bundesbank”
     
    And now it’s not anymore? There’s something here.
     

    • During these so-called historical times, gold was used as money, so having some in the central banks of your trading partners made some sense.  These banks did not actually move the gold anywhere, even when it was used in international trade settlements, due to the fear of its loss in transit… or perhaps the CLAIMED loss in transit.  Only the ownership listed in the bank’s records was changed.  I agree that this could have been done at any location back then and it still can be done today if gold were to be used to settle international trades.  I dunno… maybe storing your gold in a foreign central bank was like back in ancient times when hostages from the leaders families were used to ensure the good behavior of those same rulers.  Considering all the wars that have been fought in Europe, that’s probably not all that bad an idea.  Besides… this is German gold and they can store it wherever they wish.  Their reasons are their own and not really any of our business.  If we individuals want to store gold in London, Switzerland, Hong Kong, or Singapore, we can… and that is our business.  :-)

       

  4. “The usability of gold as a reserve asset and storage security are much more important.”
     
    Well, if it’s “just as safe” as frankfurt they could’ve held it in their own country all along. Fail argument.
     
    As far as the “usability” goes, yes for MF Global and pals that’s an argument but not for the actual owner. They can sell it as easily from Europe Danke Schön. Hole #2.

  5. “We have at our disposal fully documented lists of the bars, and our partner central banks send us every year confirmation not only of the bars’ existence but also of their quality. We receive confirmation of our gold reserves, measured in troy ounces.”
     
    Hmmm, we’re more interested in the MISSING ones. You know the ones that were remelted, just as now a meager 150 t in 3 years is going to be futilly remelted. All you need is to read folks.
     
    Is that enough to be fail #3? I say hell yeah.

  6. “No further gold was added until the 1970s. During that entire period, we had nothing but the best of experiences with our partners in New York, London and Paris. There was never any doubt about the security of Germany’s gold. In fu-ture, we wish to continue to keep gold at international gold trading centres so that, when push comes to shove, we can have it available as a reserve asset as soon as possible. Gold stored in your home safe is not immediately available as collateral in case you need foreign currency. Take, for instance, the key role that the US dollar plays as a reserve currency in the global financial system.”
     
    And, uhm, after “the 1970s”? Which “entire period”, untill then? This just seeps distrust, perhaps up to a level where they are so scared to become the next Iran (financially frozen) that they *must* have that NYFR gold held hostage there so that they can, uhm liquidate the hostage when they themselves are taken hostage? Headache!
    Anyway their logic doesnt seem to make sense. Unless they are already committed to the idea that the liquidation will happen through the shadow banking system and not through the official biggies at all. Scary. Are they bluffing with the FED there?
     
    As far as the supposedly sane argument goes, unless we know too little which we probably do, still it’s fail #4 for now.

  7. “The gold held with the New York Fed can, in a crisis, be pledged with the Federal Reserve Bank as collateral against US dollar-denominated liquidity. Similar pound sterling liquidity could be obtained by pledging the gold that is held with the Bank of England.”
     
    Well there’s the price. And it’s going to be payed off with… what… derivatives? …. used anemas?….. fake bullion? …… DOLLARS?
     
    And there we go.
     
    HAIL HAIL Bundesbank
    You though you were
    The worst of Skunk
     
    HAIL HAIL ECB
    They did not get
    The worst of thy
     
    HAIL HAIL FED
    You got it all
    so easily
     
    HAIL HAIL IMF
    You get to make
    the final theft
     
    Hang the banksters!
     
    R3K

  8. Hmm saw this later but “pledging gold” doesn’t that mean that not only have they leased it out into infinity, they also PLEDGE it as collateral still which means they’d even buy it to then turn it into their USD obigations? It makes sense in a very twisted zombie sort of way. Is that how it plays out?
     
    Doc?

    • @ricin3000 – pledged, leased, rehypothecated.  What many don’t know is that the supposedly segregated gold held at the NY Fed is not labeled Germany, Venezuela, Mexico, etc.  Each storage area is numbered, and only a few of the highest Fed officials know which nation’s gold supposedly corresponds to each storage area.  Even the nations whose gold is held on deposit aren’t privy to this data.  This means essentially that every nation with a similarly sized stack can be shown the same physical gold and informed that it is their reserves upon inspection. 

    • “Each storage area is numbered, and only a few of the highest Fed officials know which nation’s gold supposedly corresponds to each storage area.  Even the nations whose gold is held on deposit aren’t privy to this data.”

      I would bet that the secretaries who type up the paperwork and the men who run the trolleys and lift trucks that put the gold in those locations and remove it from them know all about it.  Hard to keep secrets like this.  If they claim that all this is a deep dark secret, that is likely only for show.

    • “This means essentially that every nation with a similarly sized stack can be shown the same physical gold and informed that it is their reserves upon inspection.”
      If that’s the case, then all countries owning gold bars that are inside bullion banks should withdraw all their gold at the same time so that they will know the banks didn’t tricked them.

  9. When all else fails … bluff. This poker-faced assertion that bankers and government are the most ‘esteemed’ groups of this world is almost too farcical to bear. In fact, no, I CAN’T restrain myself … HAAAAAhahahahaha HAAAAAAAAhahahahahahaha!

  10. The Bundesbank and those pulling the strings behind the scenes are going to learn the hard way that the Germans are not fooled by this to the least bit. All it will take to unleash their righteous anger is another Weimar like currency collapse. 

  11. Talk about squirming in your seat. Never read such a load of unadulterated BS….THE GOLD ISN’T THERE FOR SURE. He who holds it owns it is once again illustrated in this example. An aid to liquidity! What utter rubbish. If all of these esteemed central bankers are so trust worthy and it matters not where Germany’s bullion is held, then the reverse is equally valid.
     
    Germany can repatriate all of its Gold into State storage facilities and if there is ever a need for it to be :-
     
    “pledged with the Federal Reserve Bank as collateral against US dollar-denominated liquidity. Similar pound sterling liquidity could be obtained by pledging the gold that is held with the Bank of England.”
     
    Then the Fed or BoE should not have the slightest doubt that the holdings in Germany are also made up of the purest fine gold. They are lying through thier teeth and not convincingly so either.
     
    Here’s another interesting case involving Romania and its long lost Gold. Precious metals are eternal as we all know, but human trust can often be measured in fractions of that.
     
    Russia’s answer to Romania….. Ref getting your First World War Gold back that we were so kind to hold for safe keeping all those years ago expressed regret on Thursday over Romanian attempts to raise in the Council of Europe the issue and called on Bucharest not to “stir up the past.  The subject of Romanian gold is not currently a matter of political dialogue between Moscow and Bucharest, he said, and should be consigned to history.”
     
    We’ve got it and we are keeping it Boo Hoo to you. http://www.bullionstreet.com/news/romania-wants-gold-treasure-back-from-russia/3047

    • Now, isn’t it a curious dichotomy that Mr. Kaiser fails to castigate Mr. Putin, et. al. for this blatant confirmation of outright theft, while railing endlessly on the … equally … outrageous fenagelings of the ‘FED’ and BoE?

      It all serves to thoroughly steel my opinion that NO government can EVER be trusted … ever!  

  12. Another amusing incident arose from the fact that the Reichsbank maintained a not inconsiderable gold deposit in the Federal Reserve Bank in New York. Strong was proud to be able to show us the vaults which were situated in the deepest cellar of the building and remarked:
    “Now, Herr Schacht, you shall see where the Reichsbank gold is kept.”
    While the staff looked for the hiding place of the Reichsbank gold we went through the vaults. We waited several minutes: at length we were told: “Mr. Strong, we can’t find the Reichsbank gold.”Strong was flabbergasted but I comforted him. “Never mind: I believe you when you say the gold is there. Even if it weren’t you are good for its replacement.”

  13. Does the 8000 odd tons of Gold held by NY include all the smaller amount held on trust ? or are those amounts in addition ?
    Do all central banks include all amounts held in trust ? If there was an audit would it be true and correct ?
    The net time we’ll have an inkling of the amount of Gold there is will be same way we know now, by it’s movement.
    Just keep tally of how much travels East.

  14. A mocking bird has whispered in the ear of a raving madman that all “where is our gold inquiries” should be directed to the money changers, especially those at the Bank of Israel. The madman says since the destruction of Jerusalem in 70 A.D., including the levelling of the temple (despite the best of claims to the contrary), the money changers are once more trying to set themselves up as our Supreme Masters, and to accomplish that, they need to have control for one over all or most of the gold in the world. This is to give them the upper hand when the global fiat Ponzi scheme  that they’ve started completely runs out of steam. This is why they will bring back a gold standard which will give them the power to once again introduce fiat currencies further down the road. Rinse and repeat, rinse and repeat… nothing is new… it has always been the same trickery and deceit… run by the very same Satanic breed. Move along now, nothing to see here, it is after all only the ravings of a madman, the whisperings of a mocking bird. Yep, move along now, nothing to see here.

    •  
      Any veracity that could possibly be ascribed to this viewpoint is wholly predicated on ‘worship’ of gold as the uniquely paramount money to be sought. Such deification allows enmity to arise against … anyone … seeking to control it. This could variously apply to a Medici family as to a Rothschild clan. Once the core illusion is established, the stage is set for entrance of such ‘priests’, ‘rituals’ and their ‘altars’.

      When, in the alternative, money is fully understood to … equally … include silver and copper, the falsely ‘exalted’ are reverted again to dwell among The People as commonality in the contest of life. Gold then becomes … subject … to rational forces dictating its relative importance and functionality.

      Envy is counted among one of the ‘Seven Deadly Sins’, it should be argued, because its foundations are contrivances of the mind; borne on unsubstantiated, sheer covetousness.
       

  15. Here’s what  Bundesbank Board member Mr Thiele just announced:
     
    “We’re in negotiations with our partner central banks to develop auditing rights, and that’s been agreed in principle,” said Thiele. “In parallel, we will, over the next three years, transfer 50 tons of gold each year from New York to Frankfurt, which is an additional way to create confidence.”
     
    So, I, Germany, deposit some gold with the Fed for safekeeping, and some decades later am grateful it will allow me to inspect, count and test my bars. What this? Only now are auditing procedures being worked out? Shouldn’t that have been established before I handed over my gold? And what does it mean “to develop” an auditing right? You don’t “develop” an auditing right in a matter like this – no, no, no – you automatically and unconditionally have the right – so much so that the Fed should itself insist on at least an annual audit so no finger pointing comes back to it – after all it is one major responsibility headache to look after valuable things belonging to someone else. It seems then that the only thing to be worked out is for a German team with a clipboard and pen to count the bars in front of a Fed team, and to pick out a few at random for a purity test. Now, let’s see, how difficult is that exactly, or does it require negotiations, committees, and an “auditing development program”?
     
    I have never heard so much undiluted obfuscatory rubbish. This stinks to high heaven. 

  16. The three greatest lies

    ‘I’ll respect you in the morning’

    ‘The check is in the mail’

    ‘Your gold is safe with us’

    I said in another post, the best way to defeat these bankstards is laughing in their face

    In the words of the inexecrable bastard Jon Corzine, the gold ‘vaporized’  HAHAHAHAHA

    Firsr rule of The Liar’s Club.  Never talk about the lies., believe everything told to you.

    I forgot one more.  ‘We’re from the government and we’re here to help you.’

  17. Peculiar this report coming out just now, before elections, its like they want to crash the system, which is what this will help do. Once the SHTF, the multiple claims to the remaining gold bars is going to lead to war, among all the other shit that’s going to lead to war. I hope everybody is out of the cities and fully prepped before this sham election.

  18. There is a point that has not been mentioned yet and that is that a number of European countries wanted to store gold in the UK but more so in the US because of the fear of a Soviet invasion of Europe.  This has faded considerably but was of great concern in the 1950s through the 1970s.  Gold stored abroad could be used to fund their government in absentia, buy weapons, fund resistance groups, etc.  That may or may not be valid any longer.  Times do change.

    • @Ed_B I personally believe that it was never a valid reason to move the gold, especially considering that both the U.S. and Russia were controlled by the same group of globalists at the time. I am of the opinion that it was only a convenient excuse to in fact steal the gold. 

    • You might very well be right, SB.  While many of these situations are long on conjecture and short on facts, your thought matches up pretty well with the observable facts in recent history.  On the other hand, there could always be MUCH more to this situation than we imagine.  That would not surprise me a bit.  I don’t doubt that plenty of the world’s gold has been stolen and probably continues to be stolen via various mechanisms.  It is more than time for a thorough, complete, and independent audit of all US gold holdings.  Perhaps that would encourage others to do the same… unless they are all hiding something.  I can’t think of any other reason why they would not do the standard audits that were done prior to when they quit doing them (1950s?).

      Even if the US and Russia were controlled by the same elite group, that would not prevent them from having a war… as long as it did not get out of hand and either vaporize some elites or screw up the planet for those who survive it.  Nah… too risky.  Best avoid that. Wait!  I know.  We’ll fight each other via proxies who do not have weapons of mass destruction.
       

  19. Just remember, SB… fiat is a game and its goal is to steal real wealth.  It does it in two basic ways.  First, we are convinced that it has value and that it is OK to trade our skills and labor for it.  Next, interest is attached to its creation and its use.  Notice that interest rates are not set by the free market but by bureaucratic fiat from the Fed.  Also notice that fiat is borrowed into existence.  It is not simply printed at the cost of paper, ink, and labor.  Next, we play the “business cycle” variant of the game by raising and lowering credit standards so that anyone can borrow a lot until the loan market is saturated and then we start trimming it back until no one who actually needs a loan can get one.  By doing this, we cause a lot of folks to go bankrupt and lose their property.  This can be bought from tax auctions, bankruptcies, or the lender.  Once as much of this property has been harvested as possible, things are reversed, money is lent out, credit becomes easy again, and the cycle repeats.  Typically, this is done about every 40 years or so.  When done severely, a depression results.  When done less aggressively, a recession results.  At both times, the banks CLAIM to be insolvent and that they are about to collapse and destroy the economy if they are not given VAST amounts of low cost or free money. Having been struck just below the kneecap, the gov leg kicks, and money flows into the banks.  Instead of lending this out, the banks return the favor by buying “no risk” US Treasury paper and not by loaning it to people to expand the economy.  Eventually, Americans pull themselves out of this mess, the economy recovers, and the banks, the Fed, and the gov take credit for it… until the next time. This is a cycle, rather like milking a cow.  Can you say MOO?   lol

    As in the movie War Games, the only way to win the fiat game is not to play it.  Got silver?  :-) 

  20. It looks like the Bundesbank doesn’t understand the signification of “If you don’t hold it, you don’t own it”. Unless if the Bundesbank works for the elite so they want everyone to hold paper currencies and not physical gold and silver.

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