Bundesbank to Repatriate 374 Tons of Gold From Bank of France, Substantial Portion of Gold Held at the NY Fed!!

While Bernanke spent his afternoon today outlining why the gold standard can never work (never mind the fact that it worked perfectly for 2 centuries in America), the Bundesbank has just shattered the remaining confidence in the fractional bullion banking system, announcing that it will repatriate a portion of its gold reserves from the NY Federal Reserve, and ALL 374 tons of its gold held at the Bank of France!

In the months that followed Hugo Chavez’ 110 ton gold repatriation request in the summer of 2011, gold exploded nearly $400 as the bullion banks panicked.  As the Bundesbank’s official gold holdings held at the Fed and the Bank of France dwarf Venezuela’s 110 tons, don’t be surprised if the price of physical gold goes super-nova as Germany’s repatriation request plays out, as paper gold rehypothecated 100 times over must suddenly be conjured up in physical form.    [Read more...]