UPDATE – Germany Played Hard Ball – Gets The Gold
UPDATE – Germany Played Hard Ball – Gets The Gold
Germany has decided its gold is safe in American hands.
“The Americans are taking good care of our gold... Objectively, there’s absolutely no reason for mistrust.”
Absolutely no reason for mistrust, or absolutely no gold left to repatriate?
We’ll let our readers come to their own conclusions.
Good evening and welcome to the business magazine Makro. For many people, the purchase of gold represents a safe reserve for bad times. No wonder that, at the height of the financial crisis savers were queuing up at gold dealers. Throughout history, gold has served as a promise of reliability and stability.
But today there are considerable doubts as to whether that promise remains valid, because an examination of gold prices reveals machinations fit for a financial thriller.
Gold is the opponent of debt based moneys, i.e. currencies, and in particular the US Dollar. Therefore, the US Federal Reserve has an interest in a weak gold price, and the US government protects the manipulation of the gold price by the private banks.
For years, the US Federal Reserve has served as the lender of last resort. Gold must be weak if a loss of confidence in the US Dollar is to be averted. It has been difficult to prove that this is a rigged game with a stacked deck, but if the gold market manipulations are indeed encouraged in addition to being condoned, that would explain why oversight bodies have thus far turned a blind eye to it, despite years of massive conspicuous activities in the futures markets, as with the gold fixing in London.
Paul Craig Roberts, Assistant Secretary of the Treasury in the Reagan Administration, has voiced his concerns about the strength of the US economy, US politics, and US civil liberties. Roberts also believes the US is playing fast and loose with the monetary system and the value of the dollar. He speculates that, as the German Bundesbank has begun repatriating its gold from overseas out of storage in places like the Federal Reserve, the Fed will not be able to make delivery because it doesn’t physically possess the gold.
Perhaps this explains the Buba suddenly dropping its original 150 ton gold repatriation request from the Fed?
What we have just discovered, and what presumably few people in the English speaking world are aware of, was that the Bundesbank had made an earlier gold repatriation request (to the much publicized 300 ton repatriation request) in the fall of 2012, to ship home 150 tons from the US in three years (ending in 2015). So after January 2013 two repatriation schedules co-existed. They were not mutually exclusive – meaning Germany expected to see back was 150 tons from the US by 2015 – and ultimately 674 tons by end-2020 from both the US and France.
This was the plan…
However, it appears the Buba has folded from pressure from the Fed after a mere 5 tons of Germany’s gold reserves were delivered in 2013 as the Handelsblatt reports: ”The Bundesbank no longer feels bound to the concrete repatriation commitment time table they now admit for the first time.”
The Bundesbank has now withdrawn the original schedule to repatriate 150 tons from the US before 2015.
It transpired last week that of the 43-odd tonnes per annum the Bundesbank expects to be returned from the New York Fed, only 5 tonnes arrived in 2013.
Furthermore, of the 373.7 tonnes stored with the Banque de France, only 32 tonnes was delivered. This is little more than a morning’s delivery in the London market, so it is hard to swallow the Bundesbank’s excuses about logistics.
The burning question is why is it so difficult to get its gold back?
While the average American likely owns nearly $6,000 in flatscreens, i-phones, and i-pads, the AVERAGE German reportedly owns nearly €6,000 worth of PHYSICAL GOLD!
Like Scrooge McDuck or the dragon Smaug in J. R. R. Tolkien’s The Hobbit, Germans are gathering vast quantities of gold – a study showed that the average German owns close to €6,000 worth of the shiny metal.
On Monday, we reported that the German Financial Accountability Office had mandated the Bundesbank repatriate 150 tons of German gold from the NY Fed over the next 3 years. While this was to be expected and even inevitable in the wake of Venezuela’s gold repatriation in 2011 as well as global rehypothecation concerns, a previously classified report leaked today has revealed a much larger German gold repatriation has already occurred- from 2000-01!!
The previously classified report reveals that the Bundesbank withdrew nearly 1,000 tons of physical gold from the Bank of England in 2000-2001, decreasing Germany’s gold holdings in London from 1,440 tons to 500 tons.
Let that sink in for a moment. Germany withdrew 1,000 tons of physical gold from the Bank of England at the EXACT TIME that gold bottomed and began its decade long bull run. Did Germany pull the carpet out from under the cartel gold leasing party and ignite gold’s secular bull market in 2000?