Classified Report: Germany Withdrew 1000 Tons of Gold from London in 2000-01

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? [Read more...]

Bank of Mexico Admits 96% of Gold Reserves Held in US & London

After months of dragging their feat and claiming it was necessary for national security reasons to keep the info classified (sounds like an freedom of information request to the Fed) The Bank of Mexico has been forced to comply with the Federal Transparency Law and release information revealing where the Central Bank’s gold reserves are held.

In what will not be a surprise to any SD reader, the report reveals that The Bank of Mexico holds less than 5% of it’s gold reserves within Mexico, while the remaining 95% of it’s ‘physical’ gold reserves are held in the US and London (translation- nearly the entirety of Mexico’s gold reserves are held at the Bank of England and the NY Fed basement, and have likely been rehypothecated more times than an MFG client’s assets).

Our friend Eric Sprott recently pointed out in his monthly newsletter Do Western Central Banks Have Any Gold Left? the likelihood that the Western Central banks have largely leased out the gold they are supposedly holding as reserves.
In effect, Mexico just admitted that their actual, tangible gold reserves are 1/20th of the stated total.  Perhaps Mexico should consider hiring Hugo Chavez as their gold reserves consultant.

Got PHYZZ? [Read more...]