Gold Repatriation Matters – Here’s Why
Gold Repatriation Matters – Here’s Why by Rory – The Daily Coin
Recently, there has been a lot of news about central bank gold. Russia showing their entire central bank vault filled to the rafters with physical gold bars and physical silver bars, along with Germany releasing a photo of 4 bars of physical gold stating this proves transparency and then we have Turkey requesting and receiving 100% of their gold being held offshore. Why does all this gold news matter? What is the allure of having gold owned by the people, being held in a central bank spark such fierce debate?
The short answer is – trust. Without trust there is not much of a relationship. Sure, there are relationships of convenience and relationships for a variety of reasons, but real, honest relationships are based in trust, compassion and honesty. If a one nation is storing another nations’ gold there could be a multitude reasons for this arrangement. Equally, there could be a multitude of reasons a nation request their gold be returned home, to the rightful owner.
In 2013 Germany created a media firestorm when she requested the return of the gold stored at the Federal Reserve in New York, as well as in Paris and London. The Federal Reserve explained it would take 7 years to return 300 tons. Remember, the gold we are discussing did not belong to anyone except Germany so the gold, theoretically, should have been sitting in a vault labeled “Germany” and available IMMEDIATELY. When the Federal Reserve, officially, said it would take 7 years the gold community, especially Peter Boehringer, wanted to know why.
As Washington’s Blog stated in January 2013
Some say that Germany is only demanding repatriation of its gold due to internal political pressures, and that no other countries will do so.
A “political stunt”, a roos and it doesn’t matter that it will take 7 years to return the gold. Well, the German officials were already putting up a smoke screen by stating “no other countries will do so” as there had already been a number of countries to request the return of their gold being held on foreign soil.
Romania has demanded for many years that Russia return its gold.
Last year, Venezuela demanded the return of 90 tons of gold from the Bank of England.
Four members of the Swiss Parliament want Switzerland to reclaim its gold.
Some people in the Netherlands want their gold back as well.
Remember this was in 2013 so the references to “last year” or earlier times would be 2012 or beyond. Venezuela repatriated all of their gold being stored outside their borders and the Netherlands brought home 122.5 tons later in 2013 with zero fanfare, zero announcements and close to a media blackout in reporting the return.
This is to say nothing of the most recent repatriation of gold by Turkey. Just last week Turkey brought home 100% of the gold being held outside their borders and proclaimed this was just the first move to de-dollarize their nation, banking and financial systems. Yet, another sign that trust is king when it comes to gold, currency and money. Without trust there is no foundation on which to stand.
It’s not just a question of a rogue country or dictatorship or some other nation being portrayed as “hostile” to the current global monetary system it is a movement that is global with very real concerns about the security of one of the most financially liquid assets known to man – physical gold.
In an article we published on April 20, 2018 Turkey had repatriated 220 tons of gold from the Federal Reserve and two private banks in Turkey repatriated several tons more. It is a little unclear as too how much the two private Turkish banks received as their are two very different accounts of the volume.
In an article by Rufiz Hafizoglu and published at Trend.az, a news service located in Azerbaijan, the Turkish government has reportedly taken possession of 220 tons gold that was repatriated from the Federal Reserve. Trend did not specify a government official nor a government agency simply reporting Turkey’s Central Bank has transferred its gold reserves stored in the US Federal Reserve System to Turkey. Turkey’s total gold reserves was the entire 220 tons Turkey reported to have taken possession of on April 19, 2018. The total current value represents approximately $25.3 billion.
All of this is to say nothing of the fact that Russia has been leading the charge in central bank gold acquistions for the past several years. For a time China was acquiring as much, and sometimes more, gold than Russia but has not added a single ounce of official gold to their reserves since October 2016. Russia, on the other hand, has been acquiring gold like supplies are running out. Oh, that’s right…
It was echoed by Goldcorp, one of the largest gold mining companies, which suggested that by 2022, gold production will fall to the level of the beginning of the 21st century.
The US Geological Survey, in turn, believes that with production rates at current levels, gold reserves in the interior of the Earth will be exhausted by 2034.
Peter Boehringer, the architect of the Bring The Gold Home movement in Germany wrote a book, Holt unser Gold heim, detailing all the countries that were either discussing repatriation, adding gold to their monetary system or discussing gold as money in one form other. The number of different countries Mr. Boehringer arrived was north of 20.
Why would all these countries, since the 2008 financial meltdown (beginning of the global economic depression) feel the need to have their physical gold at arms length? These countries have felt secure having their gold stored, typically, at the New York Federal Reserve, London LBMA vaults or in Paris but something changed and now these countries are going to the expense of upgrading their existing vault or building a new vault along with the expense of security and shipping the gold home. Something changed and we only see more of this type of activity in the future.
Got physical close at hand?