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Germany completes secretive gold repatriation three years early

gold bars

Germany has completed its repatriation programme, relocating 50,000 bars of gold from France and the US. Half of Germany’s 3,378 ton gold reserve has now been brought back from London, Paris and New York, cities that housed the sovereign gold for much of the Cold War.

“The Bundesbank intends to store half of the country’s gold reserves in its own vaults in Frankfurt; the other half is to be stored in the vaults of its partner central banks in New York and London,” a spokesperson for the central bank told GoldMadeSimple earlier this year.

The operation appears to have been a complex one: Since 2013, 674 tons have been moved from the Banque de France in Paris and the Federal Reserve bank of New York. The total value of the 53,780 bars is €23.7 billion, with each weighing 12.5 kg. The whole operation was completed three years early at a cost of €7.7 million. It leaves 1,236 tonnes and 432 tonnes of the world’s second-largest gold reserve in New York and London respectively.

“The two primary functions of the gold reserves are to build trust and confidence domestically and the ability to exchange gold for foreign currencies at gold trading centres abroad within a short space of time,” Carl-Ludwig Thiele, of the Bundesbank’s Executive Board, explained. The envisaged future allocation of the gold reserves – half of them in Germany and the other half at the most important international gold trading centres – takes into account these primary functions, said the Bundesbank.

Unsurprisingly the bank refused to comment on the logistics or the operation for security reasons but did reveal something of their future plans, saying the “Bundesbank does not buy gold anymore”.

Photo: Andrzej Barabasz (Chepry)

Link to this article: : http://www.goldmadesimplenews.com/gold/germany-completes-secretive-gold-repatriation-three-years-early-13364/

Posted by on Aug 23 2017. Filed under Gold News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

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