How do you say rehypothecation in Australian?
After months of persistence, our friend Greg from AUSBullion has received written confirmation from the Reserve Bank of Australia that the bank holds all but 80 kg of Australia’s gold reserves at the Bank of England. Out of 80 tons of physical gold, less than 0.1% is held in Australia!
The Central Bank defends London’s storage/rehypothecation of Aussie gold, stating: London is a major global gold trading market and the Bank of England provides a secure and cost-effective storage location for central banks and market participants. The Reserve Bank has processes in place to ensure that the gold reserves are maintained appropriately. It is not considered necessary from management, security or operational perspectives to relocate the gold bars to a facility in Australia.
The Bank of Australia’s admission that nearly all of Australia’s gold reserves are on deposit at the BOE is below:
From AUSBullion‘s Blog:
Chris Collins | Manager | Media & Public Relations Office
RESERVE BANK OF AUSTRALIA | 65 Martin Place, Sydney NSW 2000
p: +61 2 9551 9830 | f: +61 2 9551 8033 | w: www.rba.gov.au