The Tylers at ZH have discovered a 1968 memo from the BOE archives sent by the Bank of England to the Federal Reserve revealing that the Fed sent at least 172 bad delivery gold bars to London in the late 1960’s for safekeeping for the German Bundesbank as repayment for swaps.

The memo reveals that London assayers discovered that the Fed through Johnson Matthey sent the Deutsche Bundesbank 172 ”bad delivery” gold bars, and the ”out-turn of the re-melting showed a loss in fine ounces terms four times greater than the gross weight loss”.

The memo also indicates that the Bank of England was willing to keep the discovery private due to the fact that the gold was to be held for the Bundesbank.  A declassified report discovered several weeks ago indicates that the Bundesbank subsequently repatriated 2/3rds of this gold in question from 2000-01.


The Bank of England’s 1968 memo:




U.S. Assay Office Gold Bars


1.  We have from time to time had occasion to draw the Americans’ attention of the poor standards of finish of U.S. Assay Office bars. In addition in 1961 we passed on to them comments from Johnson Matthey to the effect that spectrographic examination did not support the claimed assay on one bar they had so tested (although they would not by normal processes have challenged the assay) and that impurities in the bar included iron which caused some material to be retained on the sides of crucible after pouring.


2. Recently, Johnson Matthey have put 172 “bad delivery” U.S. Assay Office bars into good delivery form for account of the Deutsche Bundesbank. These bars formed part of recent shipments by the Federal Reserve Bank to provide gold in London in repayment of swaps with the Bundesbank. The out-turn of the re-melting showed a loss in fine ounces terms four times greater than the gross weight loss. Asked to comment Johnson Matthey have indicated verbally that:-


(a) the mixing of “melt” bars of differing assays in one “pot” could produce a result which might be a contributing factor to a heavier loss in fine weight but they did not think this would be substantial ;


(b) a variation of .0001 in assay between different assayers is an extremely common phenomenon;


(c) over a long period of years they had had experience of unsatisfactory U.S. assays


3. It is not, however, possible to say that the U.S. assays were at fault because Johnson Matthey did not test any of the individual bars before putting them into the pot.


4. The Federal Reserve Bank have informed the Bundesbank that adjustments for differences in weight and refining charges will be reimbursed by the U.S.Treasury.


5. No indication should, of course, be given to the Bundesbank, or any other central bank holder of U.S. bars, as to the refiner’s views on them. The peculiarity of the out-turn will be known to the Bundesbank: it has so far occasioned no comment.


6. We should draw the attention of the Federal to the discrepancy in this (and any similar subsequent such) result and add simply that the refiners have made no formal comment but have indicate that, although very small differences in assay are not uncommon, their experience with U.S. Assay Office bars has not been satisfactory.


7. We hold 3,909 U.S. Assay Office bars for H.M.T. in London (in addition to the New York holding of 8,630 bars). After the London gold market was reopened in 1954 we test assayed the bars of certain assayers to ensure that pre-war standards were being maintained. It might be premature to set up arrangements now for sample test assays of U.S. Assay Office bars but if it appeared likely that the present discontent of the refiners might crystalise into formal complain we should certainly need to do this.  In the meantime I would recommend no further action.


31st May 1968




Perhaps now would be a good time to recall the Bundesbank’s recent official statement regarding questions about the quality of it’s gold reserves held at the NY Fed, specifically statements such as:
We do not have the slightest doubt that our holdings in New York and Paris are also made up of the purest fine gold”, and

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.

The highly esteemed central bank of the United States- not just any fly-by-night operator.

Perhaps the Bundesbank meant the Central Bank of the United States is not by just any fly-by-night-crooks.

Maybe now Bundesbank officials who have gone so far out of their way to speak highly of their counterparts at the Fed will understand why the Federal Reserve has repeatedly refused to allow Germany to inspect their own gold reserves held at the NY Fed?

Full Bundesbank official statement:

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.

Click here for full ZH commentary on the story

  1. Behind the scenes the language being thrown around is a lot more severe than these platitudes in their statement for the public.
    They know their gold has been absorbed by the Borg collective.  If they admit it, then THEY get the blame, so the deal for today is ‘nothing to see here, move along, move along’. 
    I imagine the real message is like: “What?  Then GO GET IT.”

    • It’s impossible to express how much I envy Ann’s husband. She spared no one’s ‘bull’ from from her sword! God! What a WOMAN!

      Now, SHE ought to be a Harvard, Yale or Wharton Professor of ‘Modern Money Mechanics’ (way fat chance of THAT, sadly).  This set of videos had to be about THE MOST instructive lecture on Current Finance Methodology I’ve had in my entire life!

    • Now, SHE ought to be a Harvard, Yale or Wharton Professor of ‘Modern Money Mechanics’ (way fat chance of THAT, sadly).”

      Actually, Pat, Ann is someone that all financial types, as well as the rest of us, should seek out to complete their education once they are done with their schooling.  🙂

    • That was fantastic, I really enjoyed it. Yes Ann is absolutely correct on the Human angle.
      I Am Not My Body, I Am Not My Thoughts, I Am Not My Feelings, I Am Devine Spirit, I Am an Indivualization of God (all of us are) and nothing on the outside world can harm me.

      I intend to think rightly but ME doesn’t want to, nonetheless Me has to do what I want, as I am boss. (Emmit Fox)
      This is one of the Best couple of hours I’ve spent learning about the banking system, Big Thumbs Up

  2. ‘the Tylers have discovered a memo’!!
    ZH is progaganda by a big team of anonymous people, covering everything financial and then some. I don’t trust them, and I don’t believe this on face value. WHEN did they discover it? Were they saving for just now? Was it leaked to them? We don’t know any of that, and we are supposed to believe it is Kosher (pun not intended, but strangely relevant). What I do believe is that TPTB are now trying to accelerate the pace of the train wreck, and this fits right in.
    Anonymous Project Mayhem 2012  …. they have a video saying that there would be alot of leaks increasing from now, which would create mayhem by Dec 21 2012.
    The Movie, Shade, due for release Nov 21, the j w makers of this (Mark Dice, Shep Ambellas, Alex Jones – all the fake guys), have called for whistleblowers and anyone with info on a variety of things they define as relevant (chemtrails etc), which will be included with the movie (or released alongside the movie).
    All this leak BS, fits exactly the BOE revelation that the propaganda site ZH have ‘released’ (ie. created). 

    • @The-Doc Does anyone remember that Zero Hedge report Doc posted recently? The one about Ecuador discussing repatriation of their gold, supposedly reported on Bloomberg?

      Well, I searched for it on Bloomberg for a good 10 minutes. It wasn’t on the Bloomberg website. The only stuff I could find on the internet was a rehashing of the Zero Hedge article.

      Who are these Tylers anyway? 

    • @Tawnyard 

      Very good I always google titles and names etcetera with storys to find were they generated from. I did an extensive search on Ecuador Repatriation. nothing nodda just blog post copy paste from ZH, This story as well. No saying that  any other news source is correct but I like to see more than cope paste of one story and something running in a major news outlet.   

    • @Tawnyard … I just searched for it myself and couldn’t find it either !!  The ‘Tylers’ are a bunch of anonymous guys who do this ZH website, but the amount of actual content is a fraction of their total content, due to such a large amount of filler material, which means alot of articles each day so that readers become hooked. And, when they do have real-time content it frequently has a spin, and this has ALWAYS applied to their gold articles. They have alot of globalism articles. I believe they are of a certain race (j ws) and it is simply a sophisticated for the intelligent, finance-aware guys.

    • @Tawnyard – The original post in SD was somewhat misleading as nowhere did the reference material mention gold specifically, only “foreign holdings.” That could be a code word for gold, but it could also mean other things. In any event, the repatriation certainly does exist, as there are several sites in Spanish that refer to the return of “funds” and “assets” back to Ecuador, eg on BBC and El Universo (newspaper in Ecuador).

    • @asimee 
      asimee I checked out your two links, the BBC is from 2009 and not related to GOLD what so ever. El Universo story is below and in plane English has nothing to do with GOLD….. 

      Tuesday July 10, 2012 Economy

      Doubts financial sector on repatriation of funds


      Concerns generated in the private financial sector the government’s announcement that the Central Bank and private banks should repatriate the money invested abroad. This is because in two consecutive links, President Rafael Correa has insisted that the Central Bank of Ecuador ( ECB) should repatriate $ 1,116 million and the private banks about $ 940 million, indicating that the money should be used to finance in the country. Cesar Robalino, president of the Association of Private Banks of Ecuador (ABPE), said yesterday that the bank does not has received no official notification of the Government to repatriate cash reserves. however, already has generated a number of concerns to internal banking. It is not known for sure what the figure to repatriate because the ECB would still be making adjustments to their studies. We do not know either what the mechanism for that money becomes liquid credit or if the government will seek to buy government bonds, or securities issued by the National Financial Corporation or public banks. Also unknown is whether there will be a theme for this legal reform for the composition of the liquidity reserve. Anyway, Robalino silver clarified that private banking is on the outside, has not been “idle”, as it has qualified President Correa, but has served to finance letters of credit required by the productive sector. Meanwhile, Mauricio Pozo, former Minister of Finance of the government of Lucio Gutierrez, explained that as the Government is now taking stems the waste tax. “It has nothing saved and lowered the price of oil, is seeking someone to put that money. That someone would be the private sector. ” For Pozo, asking banks to bring resources to deliver longer term is threatening the solvency of banks. He explained that the ECB has negative equity and the Book of freely available which are depositors to the Government, the IESS, banking, liquidity is giving, so using these resources would be violation of the property. Correa explained in the link past that there are savings, although it was not voluntary. Since there was high oil prices in recent months has generated a surplus of $ 1,550 million recorded in the Single Treasury Account. President added that the repatriation of funds referred to current spending will not, but for investment. addition moneys contained in the Treasury Single Account, Correa said that there are contingency lines Andean Development Corporation and the Inter-American Development Bank. added that the investment plan is covered and no adjustments will be made, unless the price of was located oil below $ 54 a barrel.


    • @ 427 – That’s the point! There’s nothing about gold anywhere, so where did this ZH article get this information about gold repatriation? Sure, the Ecuadorians are repatriating other assets, but we can’t find any source that says they are asking for their gold back.

    • @asimee 

      As per your stament here>>Tawnyard – The original post in SD was somewhat misleading as nowhere did the reference material mention gold specifically, only “foreign holdings.” That could be a code word for gold, but it could also mean other things. In any event, the repatriation certainly does exist, as there are several sites in Spanish that refer to the return of “funds” and “assets” back to Ecuador, eg on BBC and El Universo (newspaper in Ecuador).

      Sorry your statements appear to me that you were trying to stand up to the validity of the subject at hand here. Do I care if countries are pulling digital fiat out of foreign investments NO, Do I care that countries are tying to get there GOLD held by the US Federal Reserve & US Treasury YES.

      So in other words now you are saying that the story Bogus?

      The article above is is the government suggesting to there banking system a corse of action they would like to see happen so it’s internal and nothing that will affecting the worlds banking systems curent statues        

    • @427 – What I am saying is that the repatriation does not specifically mention “gold”, only assets in general. The Doc’s original post states that Ecuador wants to repatriate 1/3 of its “gold reserves” yet the ZH article does NOT say “gold”, only foreign holdings.

      My point all along was that the gold story may be bogus, but the repatriation of assets is not. We can’t just assume that assets = gold. 

    • @asimee

      Sorry once again your wrong! Doc’s story was linked to ZH story Here
      “It Begins: Ecuador Demands Repatriation Of One Third Of Its Gold Holdings”

      Now you can go read that ok
      Thank You 

      PS: once there Google that story,names, titels, eccetera And you will find nothing that will lead you to anything but ZH or Copy Paste from ZH on other blogs. Absolutely Nothing In Official News Relics

    • @427 – It looks like you and I are saying the same thing. The titles and the personal interpretations from both the SD and ZH stories mention gold, but the Bloomberg source in the ZH does not. So, where did the “repatriation of gold holdings” come from? There’s the repatriation of other assets, but nothing about gold. Only SD and ZH are saying that.

    •  I realised when I read the ZH article that someone had made the connection between Assets and Gold. So I searched Bloomberg for a story mentioning ‘assets’ instead. I found nothing. Zip. Nada.

      This is what I’m saying. Yes, I’ve long known that ‘Tyler Durden’ is a pseudonym for a number of anonymous posters, but how can we give them credibility when we don’t know anything about them? I used to think ZH was cool, but now I think it’s just another source that can’t be taken at face value. I’m spending as much time verifying sources as I am reading articles these days.

    • @Tawntard

      You are doing the right thing! never trust one story. Do your own research and find out were the story originated. Most of these blog sites are copy paste from another site or put spin on a valid story. In fact here there was a story that was a year old being presented as new. They copied someone else’s reprint and I caught for doc…   

    • I almost never read ZeroHedge’s articles because SilverDoctors is a good website that gives me enough good financial article news so I don’t need to read ZeroHedge’s articles. So, I don’t know if their articles are a bunch of financial news propaganda.

  3. Flush with cash just won big time at the casino,paid off my assualt ar 15 assault rifle,here in Alberta  Canada,question buy maples or eagles monster box ,spent 2 hours at f,,,, bank depositing fiat help me out folks,Doc if you like rye try crown royal its the best ,cost a few bucks more but its the best,be plasing order with you next week for eagles or maples,ps ar 15 assuult rifle will go real good with my smith wesson 44 mag classic,go a head make my day,man this wiskey is good.

  4. @Chief: Thanks for these puzzle pieces clarifying how this all fits with the intentional financial destruction. Of course, at some point in the future it will be stated that the UN will be much more ethical than all these crooks about managing the world’s new financial system. So where do you want your barcode tat?

    • Yes, I believe exactly what you say … that the UN will have to oversee all the crooked dealings of world finance .. and that is what we should really be afraid of, a JWO. But, that will be after the consequences of all this ‘deceit’ have passed (post crash, post ww3, etc). I would rather have the present ‘deceit’, than the overt DECEIT of a JWO.

  5. The most poignant lesson to be drawn from America’s founding and true ideal upon which it rested is that … NO government is to be trusted. not EVEN one’s OWN!

    “Guard with jealous attention the public liberty. Suspect everyone who approaches that precious jewel.” –Patrick Henry

    Nothing so ensnares one’s Liberty as money and indebtedness. By consequence, then, our survey of attention shouldn’t be limited to those seeking government office, but ought widen to encompass those seeking to preserve false ‘money’ every bit as much.

    As our most Honorable Friend Mr. Henry admonished, ‘suspect EVERYONE’.  


    • Too bad that today, most of the people trusts the government and because of that, they are dependent to him by using the government’s benefits for example. Because of that, a lot of people will be in deep trouble when this system will collapse.

  6. @Chief: Yeah, Tribe running the planet with that intentionally mindf*cking, twisted logic, the only real point of which is to destroy everything in its path, permeating the courts, the rules, the regulations. Like Boehner has the nerve to say, “The law of the land.” That’s what Kafka was REALLY talking about.

    • Speaking of the Speaker… as a person of mostly German ancestry, I can say that the name Boehner is most definitely of German extraction and that in Germany, it would be pronounced as BONER and not as BAINER.  The former seems more appropriate anyway. lol

    • @Ed_B: A loud guffaw at your tat. I am also part Kraut — actually, I identify with that old spaghetti commercial, only substitute diversity of ethnicities (including some Heeb prolly from Russia) for diversity of ingredients, “It’s in there.” — and a chuckle at the apt pronunciation.

    • True, but important to remember that they don’t really want to destroy things .. they really want to CONTROL everything. So alot of articles out there on the internet (eg. nuclear war) are simply to scare us, so that when we see nuclear bombs, we fear the worst – that all is destroyed – but it is not!! They will not destroy their own planet, that would not be about controlling things! And, I believe, all the stuff about Nibiru, planet X, pole shift, and the movie 2012, is a EUPHEMISM for dollar collapse, meaning that it will be LIKE that (ie. big and bad), but not that itself. Therefore, things are better than what all the hype about 2012 says (IMHO), but there will be ww3 and dollar collapse, and some HAARP storms / earthquakes, and deaths due to dollar collapse, but probably no more. just IMHO!!

    • @Chief: What I see historically is a lesser or greater building up of intentionally cultivated socio-economic groups, either by pulling the strings in the background and being called “advisors” or similar, or as direct overseers “for their own good.” The pieces on this planetary chessboard get trashed periodically, either because the wealth and stability of particular subgroups, that’s useful up to a point, can get out of hand because of the awareness that goes with education and a sense of self-worth that develops in individuals when they feel some control over their lives, or “pawns,” “knights,” and “rooks” are destroyed for other reasons that are considered expedient. So there is actual socio-economic and actual real asset destruction as it is useful to the self-anointed. Also, we’re dealing with “the builders” here, so blowing sh1t up is part and parcel of how enormous wads of ones and zeros are made because fraud needs to be committed while things are being replaced. Oh, and let’s not leave out the enablers in certain settings, the insurance industry.

      But looking into the future based on what the recent past and present are suggesting, I see something that at first looks like what the lower-tier CFR types believe they are doing, things like pushing vaccines for depopulation and destroying (that is, actually tearing down, razing; can’t even run an internet business if you don’t have four walls) huge swaths of real estate as one of the next steps in the rewilding of America, but looking closer can be seen as the actual destruction of the planet to the point of being uninhabitable, via poisoning of the Gulf of Mexico (spawning ground for sealife of the Atlantic), longstanding air pollution, poisoning of groundwater / drinking water via runoff and jet fuel contaminants and now fracking, topsoil depletion and poisoning from myriad sources, and other cute sh1t like the aforementioned vaccines and other Big Pharma, GMO plants and animals and PEOPLE, with the biggest whoopsie of all being the nuclear industry (both kinds), as in, let’s build things in the wrong places that spew the most dangerous contaminants that we can’t destroy. This is the work of the big boys, this is not collateral damage, this is intentional, those guys that came here on the Paperclipper and did not stop at Go, but went directly to Merck, et al, and Camp/Fort Detrick have plans, they are not playing. The game has ratcheted up, something is different.

  7. I agree that interest is nescessary business-to-business and business-to-consumer as being the price for credit. But NOT WITH SOVEREIGN ISSUED MONEY. Then it’s just theft. There should be no price on currency itself. And of course the sovereign should not be allowed to borrow that issued money into existance. Sorry Ann, but that’s a big fail. I like the gal, and she analyzes many things very very well, but talking about antisemitism because you don’t like the concept of usery (not in private loans mind you), that’s going into lala land.

    So it’s moral to pay for thin air? Disagree.

  8. btw marxism doesn’t forbid interest AFAIK, it’s all built upon the idea of central banking, and that’s where the (first) levying of interest is! Heck the banksters financed the revolution(s) of 1917-1919

  9. I posted about half a year ago here, or on keiser’s site, that I thought *secession* would be the word of 2014, maybe already 2013. Wouldn’t be surprised if this would be the next Gerald Celente meme also. And yes, I explicitely meant  that including the USA. And it will be good for you in the end I believe.
    It’s gonna be very mixed. Real secession movements that make sense and that are carried by their people, but also the whole idea of “compartimentalizing” that the communists ha(d)(ve) in mind. It’s a documented NWO goal, to have “microstates” that are easily controlled. I think this was more about Africa and the ME and such, but, who knows….
    Anyway lots of food for thought. Ann’s alright, albeit a bit misguided at some assumptions IMHO. Best all! Love ya.

  10. That’s one more reason why you should hold physical gold and silver at your possession because if you put them in bullion banks’ vaults, then maybe the holder might manipulate your precious metals’ purity by lowering it. I knew that we shouldn’t kept our precious metals inside these bullion banks’ vaults.

Leave a Reply