Tons of bullion stored in New York, Bank of France, and elsewhere
In what could be a watershed moment for the price, provenance, and future of physical gold
, not to mention the "stability" of the entire monetary regime based on rock solid, undisputed "faith and credit" in paper money, German Handelsblatt reports in an exclusive that the long suffering German gold
, all official 3,396 tons of it, is about to be moved.
Specifically, it is about to be partially moved out of the New York Fed, where the majority, or 45% of it is currently stored, as well as the entirety of the 11% of German gold
held with the Banque de France, and repatriated back home to Buba in Frankfurt, where just 31% of it is held as of this moment. And while it is one thing for a "crazy, lunatic" dictator such as Hugo Chavez to pull his gold
out of the Bank of England, it is something entirely different, and far less dismissible, when the bank with the second most official gold
reserves in the world proceeds to formally pull some of its gold
from the bank with the most.
In brief: this is a momentous development, one which may signify that the regime of mutual assured and very much telegraphed -- because if the central banks don't have faith in one another, why should anyone else? Trust in central banks by other central banks is ending.
: Thorsten Polleit, Frankfurt-based chief economist at Degussa, a precious metals firm, said the public has been long demanding an auditing of the German gold reserves and repatriation of those reserves. Some fuel was thrown on that fire in the last year by the financial crisis.
"People have gotten a sense of how bad things could become and gold is the ultimate means of payment. The euro won't last forever. ... Gold for various reasons is the anchor," said Polleit. Read Article