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Germany: Bundesbank slashed London gold holdings in mystery move
The Telegraph ^ | 10/24/2012 | Ambrose Evans-Pritchard

Posted on 10/24/2012 7:36:13 PM PDT by bruinbirdman

Germany withdrew two thirds of its vast holdings of gold from Bank of England vaults shortly after the launch of the euro more than a decade ago, according to a confidential report that emerged on Wednesday.

The revelation came as Germany's budget watchdog demanded an on-site probe of the country's remaining gold reserves in London, Paris, and New York to verify whether the metal really exists.


Germany has 3,396 tons of gold worth €143bn (£116bn), the world's second-largest holding

The country has 3,396 tons of gold worth €143bn (£116bn), the world's second-largest holding after the US. Nearly all of it was shifted to vaults abroad during the Cold War in case of a Soviet attack.

Roughly 66pc is held at the New York Federal Reserve, 21pc at the Bank of England, and 8pc at the Bank of France. The German Court of Auditors told legislators in a redacted report that the gold had "never been verified physically" and ordered Bundesbank to secure access to the storage sites.

It called for repatriation of 150 tons over the next three years to test the quality and weight of the gold bars. It said Frankfurt has no register of numbered gold bars.

The report also claimed that Bundesbank had slashed its holdings in London from 1,440 tons to 500 tons in 2000 and 2001, allegedly because storage costs were too high. The metal was flown to Frankfurt by air freight.

The revelation has baffled gold veterans. The shift came as the euro was at its weakest, slumping to $0.84 against the dollar. But it also came as the Bank of England was selling off most of Britain's gold reserves – at market lows – on orders from Gordon Brown.

Peter Hambro, chair of the UK-listed gold miner

(Excerpt) Read more at telegraph.co.uk ...


TOPICS: Business/Economy; Crime/Corruption; Foreign Affairs; News/Current Events
KEYWORDS: germany; gold; goldbug

1 posted on 10/24/2012 7:36:17 PM PDT by bruinbirdman
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To: bruinbirdman

bfl!


2 posted on 10/24/2012 7:38:29 PM PDT by skr (May God confound the enemy)
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To: bruinbirdman

Beck was talking about this on his show this morning. He was encouraging STATES to take out their gold out of the Fed Reserve. Has him spooked.


3 posted on 10/24/2012 7:40:18 PM PDT by RushIsMyTeddyBear (Great vid by ShorelineMike! http://www.youtube.com/watch?v=KOZjJk6nbD4&feature=plcp)
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To: bruinbirdman; Jet Jaguar

Jet Jaguar,

Please ping your Goldbug list.

Thanks,
RT


4 posted on 10/24/2012 8:03:09 PM PDT by RebelTex
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To: RushIsMyTeddyBear

Is Germany thinking of leaving the euro?


5 posted on 10/24/2012 8:03:46 PM PDT by virgil
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To: RebelTex

Thanks for the note.


6 posted on 10/24/2012 8:06:04 PM PDT by Jet Jaguar (The pundits have forgotten the 2010 elections.)
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To: jiggyboy; PA Engineer; blam; TigerLikesRooster; Cheap_Hessian; CJinVA; Jet Jaguar; ...

Goldbug Ping.


7 posted on 10/24/2012 8:06:53 PM PDT by Jet Jaguar (The pundits have forgotten the 2010 elections.)
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To: RushIsMyTeddyBear

I think what had Beck spoiled was the Chinese made tungsten-filled gold bars that were being found with Australian Mint stamps.


8 posted on 10/24/2012 8:07:21 PM PDT by REDWOOD99 ("Everyone should pay taxes. Everyone should pay the same rate.)
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To: REDWOOD99

The point he made is that China is buying up gold left and right. I remember seeing a report on this some time ago.


9 posted on 10/24/2012 8:10:34 PM PDT by RushIsMyTeddyBear (Great vid by ShorelineMike! http://www.youtube.com/watch?v=KOZjJk6nbD4&feature=plcp)
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To: bruinbirdman

LOL, stupid Germans. Boy oh boy, I thought they were supposed to be so organized, and so intelligent, and have such banking and business savvy.
And now i hear they have the 2nd largest Gold reserves of any individual nation. Don’t they know, holding gold is idiotic. On every gold thread here, i get an avalanche of reasons why nothing but a moron would hold gold.

Silly silly Germans,,so unsophisticated of them. Or,,,, maybe the gold haters here are the ones behind the curve?


10 posted on 10/24/2012 8:16:45 PM PDT by DesertRhino (I was standing with a rifle, waiting for soviet paratroopers, but communists just ran for office.)
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To: RushIsMyTeddyBear
So, the ChiComs are buying gold and then selling the tungsten/knock off gold? What??
11 posted on 10/24/2012 8:18:17 PM PDT by Jane Long (Soli Deo Gloria!)
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To: REDWOOD99
Counterfeit Aussie gold sold in China
12 posted on 10/24/2012 8:21:52 PM PDT by DeaconBenjamin (A trillion here, a trillion there, soon you're NOT talking real money)
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To: Jane Long

That’s what I’m taking from this. They’re manipulating the gold market. i suspect we may be getting back to the ‘gold standard’ because of the economic uncertainty (which I hoped we would). And it was listed in the Republican platform, if I’m not mistaken.


13 posted on 10/24/2012 8:24:52 PM PDT by RushIsMyTeddyBear (Great vid by ShorelineMike! http://www.youtube.com/watch?v=KOZjJk6nbD4&feature=plcp)
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To: bruinbirdman

How ‘bout somebody AUDIT U.S. GOLD RESERVES?!?!


14 posted on 10/24/2012 8:44:11 PM PDT by G Larry (Which of Obama's policies do you think I'd support if he were white?)
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To: G Larry

Yeah, how would you like to be the auditor assigned to that engagement?


15 posted on 10/24/2012 8:51:03 PM PDT by Bshaw (A nefarious deceit is upon us all!)
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To: RushIsMyTeddyBear
"And it was listed in the Republican platform, . . . ."

"Commission to set a fixed value for the dollar"

yitbos

16 posted on 10/24/2012 8:51:19 PM PDT by bruinbirdman ("Those who control language control minds." -- Ayn Rand)
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To: bruinbirdman

GLD and IAU are big ETFs in which an investor can buy shares that are supposed to be backed by physical gold in vaults. I was big on these for a while, but sold my shares [for a decent profit] as I started to worry that vault or warehouse receipts of the gold may be found to not to be wholly back by the metal.

Of course that’s only a personal fear and not one that others would be wise to follow. I do believe a prudent investor should own some physical silver & gold in a safe place under one’s own control.


17 posted on 10/24/2012 9:14:41 PM PDT by RicocheT (Eat the rich only if you're certain it's your last meal)
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To: RushIsMyTeddyBear

What if EVERY country loses faith that their gold is “real” was his point. Get your state to bring its gold home. Only then can they trust that it hasn’t been tampered with.


18 posted on 10/24/2012 9:18:32 PM PDT by REDWOOD99 ("Everyone should pay taxes. Everyone should pay the same rate.)
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To: DeaconBenjamin

Thanks DB- I’m forwarding that link to my email list!


19 posted on 10/24/2012 9:21:46 PM PDT by REDWOOD99 ("Everyone should pay taxes. Everyone should pay the same rate.)
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To: bruinbirdman

So, in the end, what’s worth more? Gold or lead?


20 posted on 10/24/2012 9:28:07 PM PDT by Paraclete
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To: RushIsMyTeddyBear
Several years ago, the University of Texas took physical possession of quite a sum of gold that was held as certificates via a gold broker company. This was at a time when there was talk buzzing that these paper gold investments were at risk if there were to be a run of investors all exercising their right of physical possession in a short time and the NYC vaults coming up short.

Well, I think the vault was short as the broker had to go on the spot market to cover the withdrawal of several tons of gold. The stuff is at home somewhere in Texas now.

21 posted on 10/24/2012 11:03:25 PM PDT by Hootowl99
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To: Paraclete
So, in the end, what’s worth more? Gold or lead?

I would think it would depend how far into the hole society sinks. If we have a financial meltdown you would be wise to have both. If we have a meteor strike that takes us back to the stone age then gold might have little utility except as a way to carry your wealth. Lead would be much more valuable in that situation for hunting and protection.

22 posted on 10/25/2012 2:41:43 AM PDT by Wingy (Don't blame me. I voted for the chick. I hope to do so again.)
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To: virgil

I don’t see why this is considered to be worth consideration.

Prudent bankers/accountants wanted an audit. To make the audit, it was necessary to return the gold to germany. It is also prudent to have the gold in one’s own storage rather than pay fees for storage.

The most important consideration is that since international debts are no longer settled by transfer of gold from one nation’s vault space to the vault of another, there was no need to store the gold abroad. That is the purpose of the Euro. Rather than move around cumbersome gold bars, electronic ledgers are zapped and accounts are settled in the blink of an eye

Since there is no longer a threat from the toothless old Russian bear, another primary reason for storing the gold abroad has no bearing.


23 posted on 10/25/2012 4:56:05 AM PDT by bert ((K.E. N.P. N.C. +12 ..... Present failure and impending death yield irrational action))
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