HOT: Germany’s Bundesbank Gold Repatriation Numbers Explode

Posted: January 19, 2015 in Uncategorized

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MONDAY, JANUARY 19, 2015

The Bundesbank transferred 120 tons of physical gold to Germany from Paris and the NY Fed, in 2014.

The Bundesbank reports:

The Bundesbank successfully continued and further stepped up its transfers of gold last year. In 2014, 120 tonnes of gold were transferred to Frankfurt am Main from storage locations abroad: 35 tonnes from Paris and 85 tonnes from New York.

“Implementation of our new gold storage plan is proceeding smoothly. Operations are running very much according to schedule,” said Carl-Ludwig Thiele, Member of the Executive Board of the Deutsche Bundesbank.

The Bundesbank took advantage of the transfer from New York to have roughly 50 tonnes of gold melted down and recast according to the London Good Delivery standard, today’s internationally recognised standard.

“We also called on the expertise of the Bank for International Settlements for the spot checks that had to be carried out.

As expected, there were no irregularities,” said Mr Thiele.

According to its new gold storage plan, unveiled in January 2013, the Bundesbank will be storing half of Germany’s gold reserves in its own vaults from 2020 onwards.

This necessitates a phased transfer to Frankfurt am Main of 300 tonnes of gold from New York and all 374 tonnes of gold from Paris.

Since the transfers began in 2013, the Bank has relocated a total of 157 tonnes of gold to Frankfurt am Main – 67 tonnes from Paris and 90 tonnes from New York.

This is equivalent to roughly 23% of the total quantity to be transferred. The following table gives an overview of the gold that has been transferred to date.

As at 31 December 2014, the Bundesbank’s gold reserves were stored at the following locations.

One has to wonder if the Bundesbank trusts the Fed:

The Bundesbank assures the identity and authenticity of German gold reserves throughout the transfer process – from when they are removed from warehouses abroad until they are stored in Frankfurt am Main.

As soon as the gold was removed from the warehouse locations abroad, Bundesbank employees cross-checked the lists of bars belonging to the Bundesbank against the information on the bars removed.

Finally, once they arrived in Frankfurt am Main, all the transferred gold bars were thoroughly and exhaustively inspected and verified by the Bundesbank.

When all the inspections had been concluded, no irregularities came to light with regard to the authenticity, fineness and weight of the bars.

It should be recalled that because of “logistical problems” the German repatriation effort got off to a slow start in 2103. Deutsche Bank noted:

At the beginning of 2013, the Bundesbank announced it would repatriate 300 tonnes of gold stored in the US by 2020.

It is well behind schedule, citing logistical difficulties.

Yet diplomatic difficulties are more likely to be the chief cause of the delay, especially seeing as the Bundesbank has proven its capacity to organise large-scale gold transports.

Zero Hedge has a theory at to how those “logistical” problems were cleared up:

One thing is certain:

Germany sends its kindest gratitude to Ukraine, whose gold, now long gone, is most likely to be found in a far safer, and remelted, state somewhere in the bowels under Wilhelm-Epstein-Straße, number 14 in Frankfurt am Main.

http://www.economicpolicyjournal.com/2015/01/hot-germanys-bundesbank-gold.html

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