Why The U.S. Won’t Give Germany Their Gold Back-It’s GONE!
by C Serpa, Grams Gold During the cold war, West Germany followed a policy of storing its gold as far west as possible in case of a Soviet invasion. Gold remains the one currency that is accepted everywhere. In the event of a currency crisis, the gold could be quickly deployed in financial markets to help restore confidence. Over the past several years, the German people, for a variety of justified reasons, have expressed a pressing desire to have their central bank perform a test, validation or any other assay, of the German gold inventory, which at 3,395 tonnes is the second highest in the world, second only to the US. That is, if the US has any at all. The New York Fed stores the German gold without cost on the theory that the presence of foreign gold supports the dollar’s status as the global reserve currency The problem is, the US won’t (or can’t) give Germany it’s gold back! The Bundesbank announcement follows a public outcry last year after a clash in Parliament about whether all the bank’s gold was properly accounted for. It has been a long time since the German gold has been on German soil. By 1990, after the fall of the Soviet Union, some people in Germany began to complain about foreign countries holding German gold and these people began to ask, ‘Why is our gold not on German soil? Why does our gold have to be in London, Paris, and especially New York (at the Federal Reserve)?’ But at the time the Bundesbank remained pretty arrogant and refused to disclose anything. The Germans then started the public campaign and all of a sudden things began to change with regards to the Bundesbank because they were now under public pressure. So it was in 2012 that the Germans began to get a little more information about where our gold was allegedly located. They were very worried when they found out that the U.S. Fed was supposedly holding close to 1,500 tonnes of German gold in New York. In 2012, Germany had requested that 674 tonnes of its gold be repatriated and was told by the U.S. that it would take eight years to achieve. The New York Fed and the French Central Bank managed to transfer a paltry 37 tons, with only 5 coming from the US. This amount represents just 5% of the stated target, and was well below the 84 tons that the Bundesbank would need to receive each year to collect the 674 tons over the 8 year interval between 2013 and 2020. The release of these numbers promptly angered Germans, and led to the rise of numerous allegations that the reason why the transfer was taking so long is that the gold simply was not in the possession of the offshore custodians, having been leased, or worse, sold without any formal or informal announcement. When Germany heard it would take 8 years to get their very own gold back, they got extremely concerned and requested to look at their gold in the U.S. vault. Their request was refused. This occurred in 2013. Continue Reading>>>