Frequent followers of the German public campaign “Repatriate our Gold“ already know how intensively we have been struggling since 2011 (and longer) with Deutsche Bundesbank to finally – after more than 50 years of external storage of Germany’s gold – get credible transparency regarding this matter. Some progress was brought about recently (2012 disclosure of the whereabouts of Germany´s gold by BuBa; 2013 partial repatriation plan announced by BuBa; 2013 and ongoing through 2015 alleged physical repatriation of approximately 200 tons to date – equaling approximately 10% of Germany’s gold abroad). But real proof and transparency is still lacking from Bundesbank’s side!
The German Bundesbank released an inventory of its gold reserves yesterday in order to quell ongoing public concerns about the true amount of actual unencumbered reserves.
Coincidentally, on the same day Deutsche Bank has warned it will lose a whopping €6.2 billion ($7 billion) in the third quarter, its biggest quarterly loss in at least a decade and potentially ever.
We just received word that Germany repatriated 120 tonnes of gold: 35 tonnes from Paris France and 85 tonnes from NY! We already knew that 47 tonnes was repatriated from FRBNY (to Germany and Holland) during the month of November of which 3.5 tonnes belonged to the Netherlands. Thus 43.5 tonnes of gold was repatriated to Frankfurt for the entire 2014 year up to the November figure. With the BuBa announcement of 85 tonnes arriving in December, we now know that Germany repatriated 41.5 tonnes of gold in December.
We will get verification of that on the release of the FRBNY figures next week.
However what is true is the speed of repatriation is accelerating!
The Bundesbank, Germany’s powerful central bank, announced very publicly this morning the further repatriation of 120 tonnes of it’s gold being held in foreign locations – namely in Paris and New York with the Bank of France and the Federal Reserve.
Perhaps Jim Willie was on to something with his theory that the Swiss front-ran the market last week by going long physical gold?
That the Dutch have successfully repatriated 122 tonnes of gold (for context this is 122 of the 166 that left the FRBNY in 2014), from the same black-hole vaults in which the German Gold is apparently stuck, adds a fascinating new twist to the issues of 21st century ‘Diplomacy’ and sovereign Gold reserves.
It seems certain that the story of Germany & Gold will be something to watch once more in 2015:
Yesterday we received news that the FRBNY withdrew 47 tonnes of gold, of which 3 tonnes went to Holland and the remainder, most likely, was Germany. We will probably have a statement officially from Germany on that matter.
If true, it would certainly kibosh the Bloomberg story earlier in the year as totally false. (that Germany does not want to repatriate the gold stored at the FRBNY)
No doubt we are now seeing central banks no longer trust each other as confidence falters. As Bill Holter constantly reminds us, this is the biggest run on the banking system, the repatriation of one’s gold.
Germany is going to have a tough time explaining why Holland received its 122.5 tonnes before Germany got hers with a further question as to why it is taking longer to repatriate Germany’s gold with the added fact that Holland got their gold in less than one year.
Friday we published an interview by German newspaper Handelsblatt with Carl-Ludwig Thiele, Member of the Executive Board of the Deutsche Bundesbank, that was published in english on the website of the Bundesbank regarding the progress of the German gold repatriation process. This publication was clearly an attempt to convince the international audience that there were absolutely no problems in the repatriation process, apart from a slow startup. The BuBa claims to have audited all their gold in the US, as well as the shipments to Germany, the refining that took place in Europe, and claims that the bookkeeping is all according to plan…
The gold (German reserves) is being transferred to Germany for the first time. Until 1998, only 2% of our gold, or thereabouts, was stored in Germany. In the first year, we transported five tonnes from New York. This year, we will transfer 30 to 50 tonnes, or perhaps even more, from New York to Frankfurt. And there is still next year to come….We will store half of the German gold reserves in Germany by 2020 at the latest. -Carl-Ludwig Thiele, Member of the Executive Board of the Deutsche Bundesbank, 2/19/14
The Financial Times has told investors that they should act like the German Bundesbank and “demand physical gold” and warned that gold price “manipulation” could end “catastrophically“.
“There’s surely no chance that the Fed’s little delivery difficulty has anything to do with the cat’s-cradle of pledges based on the gold in its vaults? As has been remarked here before, forecasting the price is for mugs and bugs.
But one day the ties that bind this pixelated gold may break, with potentially catastrophic results. So if you fancy gold at today’s depressed price, learn from Buba and demand delivery.”
The Bundesbank has dropped a DIESELBOOM on the European markets Monday morning, calling on Eurozone nations about to go bankrupt (ie Greece, Italy, Portugal, & Spain) to initiate a one-off capital levy bail-in on their wealthiest citizens prior to asking other nations (read Germany) for bail-out help.
Yes, you read that correctly, the most powerful Central Bank in the Eurozone has just openly called for Eurozone wide bail-ins.
In the eyes of TPTB, it is one thing when a fringe financial blog such as SilverDoctors reports on and discusses the fact that the gold reserves supposedly held 5 stories below the NY Fed are likely rehypothecated and vaporized long ago. It is another thing entirely when the former top personality on Fox News, and whose news website The Blaze is the 140th most visited website in the entire US, devotes 20 minutes of TV time discussing the German’s attempts to repatriate their gold reserves, and discusses the implications of what the Fed only returning 37 tons of re-cast gold bullion to the Bundesbank in year 1 likely means.
In Glenn Beck’s own words: “The situation is worse than even I thought it was….There’s not alot of that gold (at the Fed) really left. The answer is rehypothecation.
How hard is it to return the Bundesbank’s gold? It has their stamp on it! The reason the German gold is being returned over 7 years is that a phone call came in to the Germans and said ‘Hey, Rehypothecation, Dude! There’s not enough gold here! We were playing a game!’
Once people demand their hard asset back, the entire thing collapses!“
It appears the gold manipulation and rehypothecation story has just gone mainstream.
The Golden Jackass Jim Willie sat down with The Doc for a MUST LISTEN interview regarding the markets, gold & silver, and a coming European banking collapse.
Willie made explosive allegations regarding the banking cartel, stating that the US & France launched an invasion of Mali in order to utilize Mali’s gold production to meet the Bundesbank’s 300 ton gold repatriation request.
Wille states that there is a huge shortage of the metal, and that a massive gold rush will soon be ignited, resulting in an epic short covering rally and a 50% explosion in the price of gold.
Jim Willie’s full MUST LISTEN interview with The Doc is below:
The Financial Times has said that the Bundesbank’s move to repatriate 674 tonnes of the German gold reserves from Paris and New York to Frankfurt is a victory for openness, transparency and for those who have campaigned for transparency in the gold market for years.
The FT said that the move is important –
“not for what it says about Germany’s faith in French or American vaults; nor for the cost of shifting 674 tonnes of gold; but because it is a major victory for transparency in the gold market.”
Submitted by Deepcaster:
“Knowing Key Truths, especially those hidden by Officialdom for their own Economic or Political Benefit, is a Necessary, but not Sufficient, Condition for Successful Investing. Therefore, Periodic Exposés of Hidden Truths is Essential.”
One Key Truth relating to Gold, and thus to the Soundness or lack thereof of our Fiat Currencies and Financial System, is that there is a Serious Question regarding whether Major Western Banks and Governments actually have all the Gold they say they do. In this regard, Germany has decided to repatriate their 3,400 Tons of Gold allegedly stored at The Fed in New York. Why?
“I guess it all depends on how you look at it. … Either this is a purely political show or it isn’t. Either the gold is really there to be repatriated or it isn’t. … “Just three months ago, The Bundesbank labeled as “lunacy” the idea that German gold needed to be brought home. They announce today that they’re doing it anyway, but in sizes nowhere near what had been speculated. Is this just a political trick to mollify the German hoi polloi? Probably. It certainly doesn’t upset the status quo or shake the global banking system in the manner we’d all hoped.
“However, you could also choose to look at it this way:
With this week’s 600+ ton gold repatriation announcement by the Bundesbank, Germany certainly appears to be taking Jim Willie’s advice to heart that those who exit the USdollar system first will be the leading nations in the next global economic chapter.
The day is nigh where the Saudis accept non-US$ payments for crude oil. They might first accept Chinese Yuan, then Japanese Yen, then Korean won, then Gold itself through big Turkish bazaars.
The Petro-Dollar is being isolated for sunset, and what will be a key event is the removal of the USDollar as center for global trade settlement.
Those nations that depart from the entire USDollar system early will be the leading nations in the next chapter, with stronger foundations, richer solvency, emerging economies, healthier financial markets, efficient credit engines, growing wealth, stronger political helm activity, and better functioning systems generally.
Those nations that stick with the crumbling USDollar system stubbornly will find a horrible fate with devastating effects, rampant economic damage, broken financial markets, sputtering credit engines, tremendous loss of wealth, wrecked supply lines, poverty spreading like wildfire, ruined political structures, social disorder, isolation from the rest of the world, and a fast ticket to the Third World.
Caption Contest Friday! Ze Germans examine their first bars of physical gold… with a mass spec/tungsten scanner on the table.
A classic COMEX open waterfall in gold and silver this morning has erased the week’s gains in both metals. Silver was smashed over .60 back to a $30 handle, and gold was dropped $20 back to $1665.
We hope you had your Stack the Smack algo running, as both metals have already rebounded strongly off their smash lows.
Legendary gold trader Jim Sinclair has sent an email alert to subscribers today stating that the Bundesbank’s announcement that they will repatriate 300 tons of gold from the NY Fed and 374 tons from the Bank of Paris is in direct response to outgoing Treasury Secretary Timothy Geithner’s take-down of gold at $1800 in October via the ESF.
Sinclair states that a Central Bank would not insult another major central bank unless it is an act of financial war, and that a full blown financial gold war is coming as soon as 2015-2017.
Sinclair also states that Geithner’s parting shot to break gold’s back by the Exchange Stabilization Fund was considered a direct attack on the Euro strategy for what the end game recovery will look like. The Free Gold thesis requires significantly higher gold prices to work and to elevate the euro back in reserve by choice category.
Have we seen the initial shot in a full blown global currency war?
Sinclair’s full alert is below:
It’s official. The Bundesbank has just invoked pure holy terror among the bullion banking cartel. The Bundesbank will officially begin repatriating 1/2 of Germany’s gold reserves. The real question is why now? What has changed over the past 3 months? Is Germany preparing to leave the Euro and introduce a gold-backed Deutsche Mark?
By 2020, the Bundesbank intends to store half of Germany’s gold reserves in its own vaults in Germany. The other half will remain in storage at its partner central banks in New York and London. With this new storage plan, the Bundesbank is focusing on the two primary functions of the gold reserves: to build trust and confidence domestically, and the ability to exchange gold for foreign currencies at gold trading centres abroad within a short space of time. The withdrawal of the reserves from the storage location in Paris reflects the change in the framework conditions since the introduction of the euro. Given that France, like Germany, also has the euro as its national currency, the Bundesbank is no longer dependent on Paris as a financial centre in which to exchange gold for an international reserve currency should the need arise. As capacity has now become available in the Bundesbank’s own vaults in Germany, the gold stocks can now be relocated from Paris to Frankfurt.