The bait and switch involved here speaks volumes about the real state of the global economy. Germany is concerned its actions might precipitate the great exit before it gets its gold back.
In November, the Dutch central bank has secretly brought 120 tonnes of gold, valued at nearly $5 billion, of the European nation’s gold reserves held in New York back to Amsterdam.
The Netherlands seems to have been much more successful in their attempts to repatriate bullion held in New York than the Germans, which has reserves of 3,387 tonnes, second only to the United States.
In January 2013 Germany’s central bank, the Bundesbank, said it will ship back home all 374 tonnes it had stored with the Banque de France in Paris, as well as 300 tonnes held in Manhattan by the US Federal Reserve, by 2020.
Fast forward two years and Buba, as the Federal Bank of Germany is often called, only managed to bring home a paltry 37 tonnes of gold, a mere 5 tonnes of that came from the US, the rest from Paris.
Then in June the ruling Christian Democratic Party headed by Angela Merkel, seemed to give up on the endeavour altogether, removing a possible irritant in US-German relations.
Perhaps not entirely.
As reported this week by Koos Jansen at BullionStar – one of the best trackers of physical gold flows around the globe – according to Buba, all’s going to plan with Germany’s repatriation plans:
“We are within our plan with our delivery of gold from the Fed and the Banque de France,” BuBa-executive Carl-Ludwig Thiele told the German Press Agency dpa in Frankfurt. …