If Your Central Bank Keeps Gold At The NY Fed, It’s Gone

bitcoin goneAll bars brought into the vault for deposit are carefully weighed, and the refiner and fineness (purity) markings on the bars are inspected to ensure they agree with the depositor instructions and recorded in the New York Fed’s records. This step is vital because the New York Fed returns the exact bars deposited by the account holder upon withdrawal—gold deposits are not considered fungible.  –NY Fed website

Recall, after a couple of weeks of negotiations in the proverbial smoke-filled room, it was agreed that the U.S. would return 300 tonnes of Germany’s 1500 tonnes being kept in NY Fed vaults over seven years.  This equates to a pro rata 43 tonnes per year (approx).
First year scorecard:  the U.S. shipped back 5 tonnes and they were in the form of bars that had to melted and re-cast.  If you re-read that passage above, it should leave you scratching your head.



By PM Fund Manager Dave Kranzler, Investment Research Dynamics:

This is a must-read analysis from Koos Jansen.  It definitely explains why the United States has been unable to return close to none of the gold being “safekept” by the Fed.  Recall, after a couple of weeks of negotiations in the proverbial smoke-filled room, it was agreed that the U.S. would return 300 tonnes of Germany’s 1500 tonnes being kept in NY Fed vaults over seven years.  This equates to a pro rata 43 tonnes per year (approx).  First year scorecard:  the U.S. shipped back 5 tonnes and they were in the form of bars that had to melted and re-cast.  If you re-read that passage above, it should leave you scratching your head (Merkel, the Bundesbank and the German public is left holding their proverbial “Herman” – well, may not Angela…).

This is why I suggested the other day that, if it were all possible to track the situation, I would bet money that some of the 33 tonnes of gold that the U.S. airlifted out of Ukraine could very well end up in Bundesbank vaults.    I guess the complications of loading up 300 tonnes into two transport jets at Kennedy airport for shipment to Germany is much more complicated than lifting 33 tonnes of gold out of a war zone in Eastern Europe.  Just another example of the giant “shell game” that Federal Reserve is playing with this gold that seemingly is only some decorative asset held out of tradition.

But I digress.  I highly recommend that everyone read this essay from Koos Jansen:  New York Federal Reserve Lying About Gold Storage.   Just to reinforce the credibility of the information, it is a publicly acknowledged fact that the Comex gold custodial banks offer accounts a big discount to keep their gold stored at Comex vaults.  I have no doubt that this is to facilitate the gold-leasing operations of JP Morgan, HSBC and Scotia.   I was not aware that the NY Fed offers other Central Banks free storage.  Now we know why…