Germany Brings Home Some of its Gold Reserves

Germany Brings Home Some of its Gold Reserves

Germany Brings Home Some of its Gold Reserves

$GLD

Germany’s central bank has brought much of its Gold reserve back to Frankfurt, the Bundesbank said earlier this month, restoring a Key element of economic stability the country had sent overseas for safekeeping at the height of the Cold War.

Guarded well out of Moscow’s reach in safe havens like New York, London and Paris, the 3,378-tonne, EUR 140-B Gold stockpile is a symbol of Germany’s ascent, insulating the economy even when others struggled.

But as the rest of the Eurozone stumbled from crisis to crisis over the past decade, the German public grew uneasy about keeping the Gold abroad.

Some questioned whether the Gold existed.

In secretive operation spanning 5 years, the Bundesbank moved 674 tonnes of Gold back from the Banque de France in Paris and the Federal Reserve Bank of New York.

About 50% of all Bundesbank Gold is now stored in its own vaults in Frankfurt.

 Most of the rest, 1,236 tonnes will remain at the Fed in New York indefinitely.

And 432 tonnes, will be held at the Bank of England in London.

Hoping to soothe the public and ease speculation about the existence of its Gold, the Bundesbank released a 2,300-page list of Gold bars in Y 2015, promising increased transparency to calm wary Germans.

During the Cold War, 98% of the Gold was stored abroad. The biggest hoard moved so far, some 931 tonnes, was brought back from the Bank of England in Y 2000.

The German “Repatriate our Gold” campaign is satisfied with some progress both on the physical and information front. At the end of Y 2016, Germany had about 47% (1,580 tonnes) of its Gold in Frankfurt.

Note:  In January 2013, Germany’s central bank (Deutsche Bundesbank) announced plans to repatriate 300 tonnes of its 1,236 tonnes of Gold from the NY Fed and 374 tonnes from France by Y 2020, in order to have most of its official Gold reserves stored in Frankfurt.

This begs the Big Q: Why is not all of it coming home?

Any ideas?

Comments welcome.

Have a terrific week.

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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