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Old 01-15-2013, 02:42 AM   #1
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Bundesbank to Repatriate 374 Tons of Gold From Bank of France, Substantial Portion of Gold Held at t

http://www.silverdoctors.com/bundesb...at-the-ny-fed/

Quote :
While Bernanke spent his afternoon today outlining why the gold standard can never work (never mind the fact that it worked perfectly for 2 centuries in America), the Bundesbank has just shattered the remaining confidence in the fractional bullion banking system, announcing that it will repatriate a portion of its gold reserves from the NY Federal Reserve, and ALL 374 tons of its gold held at the Bank of France!
---
The Bundesbank has developed a new concept as to where she should continue storing her gold reserves. According to information of the Handelsblatt, this approach which will be announced next Wednesday will repatriate the domestic gold, and store less gold in New York, and will hold no more gold in Paris.

Currently, the gold of the Bundesbank outsourced their claims to New York, London, Paris and Frankfurt. In the American Federal Reserve the Bundesbank stores 45 percent of the total 3,396 tonnes of gold, in the Bank of England in London, 13 percent, in the Bank of France in Paris eleven percent and 31 percent at its headquarters in Frankfurt. This distribution is about to change.

Let's see how this one plays out.... the current article says that of the banks 3,396 tonnes of gold, 45% is held in the NY Federal reserve. I wonder what part of that portion they are demanding in physical.
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Old 01-15-2013, 05:21 AM   #2
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Massive news!
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Old 01-15-2013, 06:24 AM   #3
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Originally Posted by white&yellow999 View Post:
I wonder what part of that portion they are demanding in physical.
The whole point of repatriation is to bring physical gold back under the control of the original holder nation, i.e., into their own vaults. So whatever portion they decide to repatriate, it will be all phys .

Turns out that crazy wacko Chavez wasn't as crazy as some would like us to believe, no?

same on Zerohedge:
http://www.zerohedge.com/news/2013-0...d-new-york-fed

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Old 01-15-2013, 07:15 AM   #4
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Raise a glass to Lars Schall.
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Old 01-15-2013, 08:47 AM   #5
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Veeeery interesting.......and bullish.

Imagine if this becomes the new trend for foreign nations.
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Old 01-15-2013, 11:22 AM   #6
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Yes, if this is true, it looks to me like BIG news.

My friends! I will be watching this like a hawk!







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Old 01-15-2013, 12:04 PM   #7
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Originally Posted by DoChenRollingBearing View Post:
Yes, if this is true, it looks to me like BIG news.
there are direct quotes (in German) from Bundesbank statement, with analysis re: their previous statements (not older than few months, stating the contrary, i.e. them having "full trust" in the Fed and other holders of their gold), and what that implies, in that Zerohedge article above. So 1st, it is true, 2nd, has very very big implications: essentially, major central banks are no longer all warm and fuzzy with each other, and the trust between them is gone. Things might accelerate from here.
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Old 01-15-2013, 12:43 PM   #8
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Originally Posted by Jim Sinclair :
...
Charles De Gaulle was the first person in modern history to call the hand of the USA on its then obligation to convert French held dollar reserves into gold. I was a senior trader at the time.

History will look back on this salvo fired across US war financing as being the beginning of the end of the US dollar as the reserve currency of choice.

The reaction on the part of the US was to cut the tie between the dollar and convertibility. This again raises the question of does the USA have fungible gold to the degree that is claimed without 3rd party audits or any viewing publicly whatsoever.

If it is true as reliable sources today reported that Germany wishes to repatriate a significant amount of its gold, then that request is a modern version of the first salvo that Charles de Gaulle fired at the US treasury over convertibility.

Assume that no close violated Alf’s downside price and it is possible that today’s revelation concerning Germany is an event leading to gold’s first main target above the recent high of $2111. It is significant because under normal circumstances no major central bank would insult another major central bank in that manner.

Today’s report, if true, is a salvo fired at the concept that the USA has all the gold it claims and all the gold it stores for others. If true, this event is the most important gold development since Charles De Gaulle called the US hand that it would stand by convertibility which many then assumed it could not because even then the amount of gold held was publicly questioned.
...
http://www.jsmineset.com/2013/01/15/...-from-the-fed/
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Old 01-15-2013, 12:51 PM   #9
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Quote :
The whole point of repatriation is to bring physical gold back under the control of the original holder nation, i.e., into their own vaults. So whatever portion they decide to repatriate, it will be all phys
Thanks... yes, I understand this. What my question is, and I can understand the way I worded my question in the original post is open to this interpretation.... but the question is, how much of their gold are they pulling out of the NY Fed's vaults? The article only says a portion...
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Old 01-15-2013, 12:54 PM   #10
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Originally Posted by James Turk :
...
We just have to wait and see exactly what the Bundesdbank says tomorrow about their plan regarding gold repatriation. The key here is that although the newspaper in Germany is considered credible, the reality is that we need to see an official statement from the Bundesbank. ...
http://kingworldnews.com/kingworldne...pect_Next.html
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Old 01-15-2013, 02:04 PM   #11
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This news, the inevitable raising of the debt ceiling, and my old 50 sma are all looking pretty bullish in the near future.
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Old 01-15-2013, 03:29 PM   #12
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Good catalysts.
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Old 01-15-2013, 07:06 PM   #13
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That Germany is only going to request a portion of its gold back from the Fed is quite telling to me. They are taking 100% out of France, but only a percentage from the US.

Call me a skeptic, but I think this may be a 'behind-the-scenes deal' perhaps to cover the fact that it may not all be there?
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Old 01-15-2013, 07:09 PM   #14
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I also read at today's ZH posting that a commenter said there would be a Press Conference tomorrow, I cannot say if that is true. If it IS true, then that would be a huge story (Germany taking their gold home).

Pt climbed over Au today, has been spiking (S African production problems and increased automotive demand).

J C Penney and Barnes & Noble have problems, saw them just today (anecdotal evidence of course).

"Big News & Little News"

http://tinyurl.com/a63ucbb
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Old 01-16-2013, 04:32 AM   #15
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Originally Posted by Jetstream View Post:
Call me a skeptic, but I think this may be a 'behind-the-scenes deal' perhaps to cover the fact that it may not all be there?
Since the French elections, the lover's knot between Germany and France has unraveled. In the past when they parted ways, the result was usually war. At the very least this is an economic war with Germany versus France with Germany holding all of the Aces.

Since the financial condition of France is bordering on the PIIGS financial conditions, this may be a move, either directly or indirectly, by Germany to force France into a corner. If so, then Germany will "colonize" another country to add to the current list, namely the Balkans and Greece, with Cyprus soon to join. Italy and Spain are well on their way to colonization already.
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Old 01-16-2013, 09:20 AM   #16
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AEP apparently reads Jim Sinclair's blog:
Quote :
The move marks an extraodinary breakdown in trust between leading central banks and has set off ferment among gold enthusiasts, with some comparing it with France’s withdrawal of gold from the US under President Charles de Gaulle as the Bretton Woods currency system crumbled in the late 1960s.
...
http://www.telegraph.co.uk/finance/p...ed-moment.html

It appears that the Bundesbank released a statement:
Quote :
The Bundesbank will repatriate 674 metric tons of gold from vaults in Paris and New York by 2020 to restore public confidence in the safety of Germany’s reserves.

The phased relocation of the gold, currently worth about 27 billion euros ($36 billion), will begin this year and result in half of Germany’s reserves being stored in Frankfurt by the end of the decade, the Bundesbank said in a statement today. It will bring home all 374 tons of its gold held at the Banque de France and a further 300 tons from the New York Federal Reserve, it said. Holdings at the Bank of England will remain unchanged.
...
The Bundesbank is negotiating auditing rights with its partner central banks. Thiele said he visited all storage locations last year and the returning gold will be examined. He declined to comment on the cost of the transfers, saying only it is “economically tolerable for the Bundesbank.”

While German gold is stored for free in New York and Paris, the Bank of England charges between 500,000 euros and 550,000 euros a year.

Thiele said the decision to repatriate all German gold from Paris “won’t cause any diplomatic problems” and that Bundesbank President Jens Weidmann and his French counterpart Christian Noyer had discussed the decision.
http://www.bloomberg.com/news/2013-0...y-by-2020.html
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Old 01-16-2013, 10:09 AM   #17
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I've been thinking about this a bit and I'm not sure that the repatriation is going to have any direct impact on the markets. It's possible that the move could spark other countries/central banks to follow suit (especially where the population is already pressuring for audits/repatriation) thereby having an indirect impact, but what strikes me as curious is that the Bundesbank is not repatriating gold from the only hub that charges them a custodial fee - from England - where rehypothecation is purportedly taking place without limits or restraint.
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Old 01-16-2013, 10:13 AM   #18
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I'm very busy right now, but consider this:

Why does it take 8 years to get 674 tons home to Germany? The only reason can be leasing or swap agreements, i.e. the Buba doesn't want to cause shortages due to abrupt terminations of these deals.

Another fact is burried in a German pdf presentation by a member of the Buba board, it says on p. 17 "LGD-Standard erreichen, sofern nicht gegeben" = "reach London good delivery standard, as far as not given".
http://www.bundesbank.de/Redaktion/D...ublicationFile
It means that they own bars that are either not the standard 400 oz weight, size, or quality.

If somebody amoung has some spare time left, you could do the math and figure out whether the oz to bar ratio taken from p. 10 of the pdf is indicating that the bars are not 400oz sized:

location / moz / bars

Frankfurt / 33,3 Mio. / 82.857
New York / 49,4 Mio. / 122.597 1.536
London / 14,3 Mio / 35.640 445
Paris / 12,0 Mio. / 29.775 374

Total / 109,0 Mio. / 270.869 3.391
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Old 01-16-2013, 10:20 AM   #19
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Originally Posted by swissaustrian View Post:
...
If somebody amoung has some spare time left, you could do the math and figure out whether the oz to bar ratio taken from p. 10 of the pdf is indicating that the bars are not 400oz sized: ...
Frankfurt -> avg 401.897 toz/bar
New York -> avg 402.946 toz/bar
London -> avg 401.234 toz/bar
Paris -> avg 403.023 toz/bar
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Old 01-16-2013, 10:25 AM   #20
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Bundesbank official statement:

http://www.bundesbank.de/Redaktion/E...d_reserve.html
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