Germany has rejected proposals by France, Britain and the US to have German gold reserves used as collateral for the Eurozone bailout fund. Germany Economy Minister Philipp Roesler said on Monday that the German people’s gold reserves cannot be touched and “must remain off limits.” “German gold reserves must remain untouchable,” said Roesler, who is head of the Free Democrats (FDP), a partner in Chancellor Angela Merkel’s coalition. Roesler added his voice to opposition to an idea proposed at the G20 summit of using reserves including gold as collateral for the euro zone bailout funds. The Bundesbank and Mr. Seibert, spokesman for Merkel, said Sunday that they too ruled out the idea discussed at the summit of Group of 20 leading economies last week. Mr. Seibert dismissed media reports yesterday that the plan to boost bailout funds, to aid Italy or another large euro zone country, would require Germany to sell off part of its gold and foreign exchange reserves. “Germany’s gold and foreign exchange reserves, administered by the Bundesbank, were not at any point up for discussion at the G20 summit in Cannes,” he said.
From Goldcore:
Gold is trading at USD 1,767.90, EUR 1,283.90, GBP 1,101.60, JPY 138,011, CHF 1,583.90, and AUD 1,711.70 per ounce.
Gold’s London AM fix this morning was USD 1,764.00, GBP 1,102.78, and EUR 1,286.65 per ounce.
Friday’s AM fix was USD 1,756.00, GBP 1,096.47, and EUR 1,269.61 per ounce.

Cross Currency Table
Gold prices have risen in all major currencies due to safe haven demand for bullion on concerns that the debt crisis in Greece, Italy and much of the Eurozone may lead to contagion in markets.
Italian 10 yr government bond yields have surged to 6.61% and saw an inter day high of 6.676% which has contributed to sell offs in European stock indices which followed their Asian counterparts lower.
The ‘safe haven’ Swiss franc has fallen sharply against all currencies including the euro and especially against gold. Gold in Swiss francs has surged 2.4% – from CHF 1,556 to 1,590.

IMF Global Gold Reserves (Million Ounces) 
Germany has rejected proposals by France, Britain and the US to have German gold reserves used as collateral for the Eurozone bailout fund.
Germany Economy Minister Philipp Roesler said on Monday that the German people’s gold reserves cannot be touched and “must remain off limits.”
“German gold reserves must remain untouchable,” said Roesler, who is head of the Free Democrats (FDP), a partner in Chancellor Angela Merkel’s coalition.
Roesler added his voice to opposition to an idea proposed at the G20 summit of using reserves including gold as collateral for the euro zone bailout funds.
The Bundesbank and Mr. Seibert, spokesman for Merkel, said Sunday that they too ruled out the idea discussed at the summit of Group of 20 leading economies last week.
Mr. Seibert dismissed media reports yesterday that the plan to boost bailout funds, to aid Italy or another large euro zone country, would require Germany to sell off part of its gold and foreign exchange reserves.
“Germany’s gold and foreign exchange reserves, administered by the Bundesbank, were not at any point up for discussion at the G20 summit in Cannes,” he said.
Mr. Seibert was responding to proposals to sell about €15 billion of Germany’s gold reserves of over 3,000 metric tonnes, worth a reported €139 billion.
A Bundesbank spokesperson said it was aware of the plan and said the institution “rejected” plans to touch federal reserves.
The Sunday Frankfurter Allgemeine newspaper said the initiative marked a fresh round in an ongoing struggle between the Bundesbank and the Merkel administration over reserves the bank manages on behalf of the German people.
The Irish Times reports that today’s finance ministers’ discussion is part of a wider strategy by the ECB to sound out the possibility of gaining control over the gold reserves of the euro zone’s central banks.

Bloomberg Composite Gold Inflation Adjusted Spot Price – 1971 -2011 (Monthly) 
Italian Gold Sale Again Proposed in Germany
Senior German politician, Gunther Krichbaum, a lawmaker in German Chancellor Angela Merkel’s governing coalition and Chairman of the Committee on the Affairs of the European Union of the German Bundestag has proposed that Italy sell its sizeable gold reserves in order to lower its debt.
Krichbaum, who chairs the German parliament’s European Affairs Committee, was quoted as saying in the Rheinische Post that Italy’s gold reserves are relatively high and could be used to pay off their sizeable debt.
Using periphery nations’ gold reserves as collateral has been on the agenda in Germany for some months with many influential German politicians calling for debtor Eurozone nations to sell their gold reserves.
Angela Merkel’s budget speaker and his opposition counterpart urged Portugal to consider selling their gold in May of this year.
Senior Minister and rival to Merkel, Ursula von der Leyen, demanded that the debtor ‘PIIGS’ countries offer Germany more reliable guarantees and allow it access to their gold reserves and industrial facilities as payment for loans.
Gold’s value as money and as a strategically important monetary asset is being slowly realized again.
For breaking news and commentary on financial markets and gold, follow us on Twitter.
SILVER 
Silver is trading at $34.45/oz, €25.05/oz and £21.46/oz
PLATINUM GROUP METALS 
Platinum is trading at $1,630.25/oz, palladium at $654.75/oz and rhodium at $1,525/oz.
NEWS
(Bloomberg)
Italian Gold Sale Raised by CDU Lawmaker, Rheinische Post Says
(Reuters)
German Economy Minister: Gold Reserves Cannot be Touched 
(Reuters)
Gold rises after Greek coalition, Italy eyed
(MarketWatch)
Gold moves higher; Germany won’t use gold for EFSF
(Bloomberg)
Gold Climbs to Six-Week High as Greek, Italian Risk Stokes Haven Demand
(Irish Times)
Berlin blocks plan to use Bundesbank to top up bailout fund 
(Reuters)
CFTC issues update on long-running silver probe
(News-Antique.com)
Jar filled with $20 Double Eagle gold coins expected to raise £80,000 for heirs of Jewish refugees
COMMENTARY
(Zero Hedge)
G-20 Demands German Gold To Keep Eurozone Intact; German Central Bank Tells G-20 Where To Stick It
(Wall Street Journal)
The Extraordinary Popular Delusion of Bubble Spotting
(MarketOracle)
John Mauldin: Stupid Government Tricks, Let’s Tax the Millionaires, Where Will the Jobs Come From?
(The Journal.ie)
Interview: Max Keiser on Ireland, Bankers and Why the Euro Will Collapse
(Wall Street Journal)
A Warning From the (Old) Bundesbank
(Got Gold Report )
Got Gold Report – Bargain, Bargain, Bargain!
(SilverSeek)
CFTC’s evasion after 3 years investigating silver is answer enough

  1. This is going to get really interesting and ugly quickly. If any of you have slopped hogs, and I have (queue the Green Acres theme music) there are few things uglier than hogs racing towards the trough. It looks kind of like Wal Mart shoppers on Black Friday. You can get seriously killed if you are in the way.
    The last time German gold was up for grabs was when the allies and League of Nations demanded German pay for WWI. Nothing went well after that. You might as well ask an Israeli to give up his Uzi.
    If Germany wisely and firmly says no to offering their $140 trillion in gold as collateral you can be absolutely sure these Eurotrash PIG bastards are going to turn their snouts towards us.
    And yes, they are going to demand we send them our 8000 tons of gold in return for Euro Bonds. And I bet that Obama will say to us that we need to help our less fortunate neighbors. And there we go with another wealth redistribution to the European Mooch Class

  2. "…we send them our 8000 tons of gold in return for Euro Bonds."

    …If the USA even has ownership of supposedly 8,000 tons of real gold. Where are the audit results for the American people to see?

    To the German people: please demand that your government repatriate all of your gold already!

  3. AGXIIK, I think you meant $billion. I'm not trying to nitpick, I mention it because my understanding is that ALL of Germany's gold could cover Greece, but if anyone else needs a bailout they're outta luck. This leaves the door wide open for conspiracy theories; why would anyone care about a barbarous relic that's worth only a fraction of the EFSF? It's also an awfully convenient way to make Germany's gold (held by you-know-who in you-know-where) vanish without any questions.

  4. Oops! I guess I got ahead of myself If gold goes to $1,700,000 an oz.: Now we are at that pesky $140 trillion.
    I guess with 'trillion' being talked as casually as the weather, I can be excused for that little mistake.
    And another thing. I dont know where our gold is or Germany's for that matter. It's not in my mattress, that I can say for sure.
    Does anyone know for sure where the gold is? And speculation on the part of our readers? Just curious
    If it's not where it is supposed to be, this is going to some people really pissed

  5. Ahhh, just like an important lesson I learned in college. There are two types of beer. Your beer and free beer!

    Now it appears there are two types of gold bullion. Your gold bullion and then there's everyone else's bullion. Your bullion can never be touched but everyone else's bullion is fair game.

    Sterling, pass the popcorn. This is going to get good!

  6. This tells me that some people are desperate for some gold. Why would Germany give up its gold to bail out a buch of greek idiots who have spent to much? And we Americans are even bigger idiots then the Greeks because we have spent many times more then thay have.
    Why should Germany have to suffer?
    Sierra

  7. Thanks Doc I will drill down on that May 2011 post.
    . And Anon, very funny My beer and free beer were usually the same thing In my mis-spent yoot I had a job All my straphanging, freeloading dipstick homies loved mybeer/freebeer. It brings up some humorous memories. What someone will do to have friends. Damn!

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