Jim Willie: Central Bank Gold Rehypothecation Scandal to Take Gold to $5,000/oz

November 22, 2012 By 57 Comments

By Jim Willie,  GoldenJackass.com

-The battle is on for delivery and verification for official gold accounts
-Evidence grows that much of it is gone, and when demanded, replaced with urgency
-It is soon to transform into a global gold war
-The German Govt gold demand to the London and NY City bankers represents a big escalation in the gold war
-The central bank coordinated QE to Infinity has brought questions of gold account location and integrity
-The Allocated Gold Account scandal is a natural event to follow the LIBOR banker scandal
-QE3 will assure a gold rise past the $2000 mark, but the new scandal will take the gold price to $5000
-The powerful gold factors are aligned and in place, led by permanent ZIRP and unlimited QE [Read more...]
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German Calls for Gold Repatriation Intensify As Fed Refuses to Allow Inspection

November 22, 2012 By 92 Comments

Calls for Germany to repatriate its 1,536 tons of gold reserves held at the NY Fed are intensifying as Der Spiegel reports the Federal Reserve has refused to allow German inspectors to even view the country’s massive gold reserves “in the interest of security and of the control process“.

We have stated repeatedly that with repatriation and/or audit requests completed or in progress by Venezuela, Germany, Switzerland, and the Netherlands, The BOE and the Fed suddenly find themselves in a heap of trouble as the situation (and confidence that the Central banks actually still hold the tungsten gold reserves on deposit) is rapidly deteriorating. 
More on the Fed’s non-compliance with German requests to view/inspect their own gold below.

[Read more...]

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Fed Sent Bundesbank 172 Bad Delivery Gold Bars in 1968

November 9, 2012 By 43 Comments

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. [Read more...]

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Netherlands’ Citizens Group Demands Central Bank Reveal Location of Country’s Gold Reserves

October 27, 2012 By 32 Comments

First Venezuela, then Germany, and now the Netherlands want their gold back.
In the wake of this week’s ruling by the German Federal Accountability Office that Germany must repatriate and audit 150 tons of its gold reserves from the NY Fed over the next 3 years, a Netherlands citizens committee has filed a petition demanding the Central Bank release information ”on the quantity and storage location of the Netherlands’ physical gold, and on the extent and nature of the gold claims.”

In the words of one of the petitioners Tom Lassing: “The last years have seen a loss of trust in the financial system and we have been fooled a lot. So I say: Just let the central banks like DNB show the gold is really there.

Should the citizens committee be successful, we are confident they will discover the vast majority of the country’s gold reserves- 10th largest in the world at 612,000 kilograms, are held in the basement of the NY Fed.
As we stated several days ago, the jig is now up.  The German accountability office will trigger an avalanche of gold audit, delivery, and repatriation requests around the Western world.   We wish the Fed luck staying ahead of the cascading avalanche of requests to convert unallocated (rehypothecated) gold into solid physical metal.  They’re going to need it. [Read more...]

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