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The Germans Are Coming for Their Gold

Posted By admin On October 25, 2012 @ 3:04 am In Money Watch | Comments Disabled

John Carney
CNBC.com [1]
Oct 25, 2012

A German federal court has said that country’s central bank should conduct annual audits and physically inspect its gold reserves [2] worldwide, including gold in the custody of the Federal Reserve Bank of New York. In addition to the FRBNY, Bundesbank gold is stored in London, Paris and Frankfurt.

For decades, the Bundesbank has relied on written confirmation of its gold holdings in London, Paris and New York. According to the report from the German audit court, the last time Bundesbank officials physically inspected the central banks gold holdings was, well, never.

(It should be stated that the folks at FT Alphaville [3] quote a report saying an inspection took place in 1979/1980.)

Interestingly enough, the Bundesbank is apparently quite happy with taking the word of other central bankers [4] about the existence, location and size of its gold reserves. It put out the word that it disagrees with the Audit Court, which only has advisory power and cannot force the Bundesbank to follow its recommendations, about the need for inspections. Nonetheless, the Bundesbank is actually going to follow the recommendation that it verify the gold stocks. It also has plans to ship some 150 tons of gold back to Germany for a more “thorough examination.”

Full article here [1]

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URLs in this post:

[1] CNBC.com: http://www.cnbc.com/id/49540593

[2] physically inspect its gold reserves: http://www.spiegel.de/wirtschaft/soziales/rechnungshof-fordert-bundesbank-zur-inventur-der-goldreserven-auf-a-862719.html

[3] the folks at FT Alphaville: http://ftalphaville.ft.com/2012/10/23/1224511/counting-das-gold-at-fort-knox/

[4] taking the word of other central bankers: http://www.bloomberg.com/news/2012-10-23/bundesbank-disagrees-with-audit-court-s-view-on-gold-reserves.html

[5] Switzerland Wants Its Gold Back From The New York Fed: http://www.prisonplanet.com/switzerland-wants-its-gold-back-from-the-new-york-fed.html

[6] Bundesbank’s Official Statment On Where It’s Gold Is (And Isn’t): http://www.prisonplanet.com/bundesbanks-official-statment-on-where-its-gold-is-and-isnt.html

[7] Why Germany Wants to See its US Gold: http://www.prisonplanet.com/why-germany-wants-to-see-its-us-gold.html

[8] Germany Sells 150,000 Troy Ounces Of Gold In October… But Not Why You Think: http://www.prisonplanet.com/germany-sells-150000-troy-ounces-of-gold-in-october-but-not-why-you-think.html

[9] Bundesbank Official Statement On Gold Repatriation: http://www.prisonplanet.com/bundesbank-official-statement-on-gold-repatriation.html

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