Global repatriation and the Fed's gold vault

[pmbug]

...
This means that after 177 tons of gold were withdrawn in 2014 - the largest year of gold redemptions since 2008 when 230 tons of gold departed the NY Fed vault - another 30 tons of parked gold has been recalled to their native lands so far in 2015.

This also means that for the first time in the 21st century the total gold tonnage held at the NY Fed is now under 6000 tons, or 5,989.5 to be precise.

But most importantly it means that all of the 207 tons in Dutch and German withdrawals are now accounted for with a matched and offsetting "departure" at the Fed. Which is why the next monthly update of the Fed's earmarked gold will be especially interesting: if March data shows that the withdrawals continue, it will mean that either Germany, or some other sovereign, has continued to redeem their gold which for some reason they no longer trust is safe lying nearly 100 feet below street level on the Manhattan bedrock.

http://www.zerohedge.com/news/2015-...rst-time-after-10th-consecutive-month-redempt

 

[ancona]

They see the writing on the wall. No sane person would allow someone else to have custody of their gold, with the implicit understanding that the custodian can and will re-sell it to someone else if they think they can skim off a nice vig in the process.

 

[dontdeBasemebro]

Possession is 9/10 of the the law, and 10/10 of reality.

 

[pmbug]

... we now have the March data, and we can officially confirm that the gold redemptions from the world's (allegedly) largest gold vault have continued, and another 10 tons of gold was put on a ship (or plane) in March in an unknown direction.

As a result, total earmarked gold at the NY Fed is now down to 5,979.2 tons, a level not seen in the current century.

... the total expected gold redemptions by Germany and the Netherlands amounted to 207 tons. Thus, the March redemption means that either Germany is continuing to pull its gold, some 10 tons at a time, or some other central bank has joined the parade of gold repatriators.
...

http://www.zerohedge.com/news/2015-...fuse-stop-200-tons-gold-repatriated-past-year

Does this surprise anyone here?

 

[pmbug]

* bump *

...
This week, Rep. Mooney wrote to Federal Reserve Board Chairman Jerome Powell as follows:

I remain interested in the Federal Reserve’s activities with respect to the gold market. The gold price – now hitting all-time highs – is in some ways a report card on your management of the current system of unbacked Federal Reserve notes and bank credit.

I am increasingly concerned that actions by the Fed, the U.S. Treasury, and deficit spenders in Congress have undermined the world’s confidence in our currency, making our nation more financially vulnerable – to say nothing of the impact of inflation on our own citizens.

Please respond in writing to the following questions no later than January 15, 2024:

• Has the Federal Reserve or the Federal Reserve Bank of New York repatriated any gold to foreign nations this year? If so, to which countries and how much?
• How much gold is the Federal Reserve vaulting for foreign nations now and how does this compare to the amount vaulted at the end of 2022?
• Does the New York Fed’s statement of November 9 asserting that the Federal Reserve and U.S. Treasury Department did not intervene in the foreign exchange markets during the July-September 2023 quarter cover the gold market as well?...

...

U.S. Congressman Asks Federal Reserve Whether Nations Are Repatriating Gold from New York

Washington, D.C. (December 14, 2023) – As central banks across the globe continue to scoop up gold bullion for their reserves at record rates, U.S. Rep. Alex Mooney (R-WV) is asking Federal Reserve Chairman Jerome Powell some pressing questions about gold. Gold currently trades at all-time...

www.moneymetals.com

 

[chieftain]

Nice 8.5 year bump Bug

I'm not sure the Congresscritter will even get an answer, let alone an appropriate one.

 

[searcher]

RE: post 5

Congressman Demands Answers From The Fed About U.S. Gold Reserves!​

Dec 15, 2023


12:37

 

[pmbug]

...
In December, Rep. Alex Mooney, R-W.Va., asked Powell a series of simple and direct questions, including whether the Federal Reserve has recently repatriated gold to foreign nations, how much gold the central bank is holding now, and how much it held in 2022.

Powell responded to Mooney in a letter dated last Friday, giving evasive non-answers to all the congressman’s inquiries.

The Fed chairman told Mooney that the Federal Reserve does not own gold but holds it as a custodian for other entities—a fact the congressman presumably already knew. Powell also said that the Fed serves as a custodian for a “small portion” of the U.S. government’s gold, telling Mooney that “any questions you may have about such gold are best directed to the Treasury Department.” Rep. Mooney’s questions were not about the Treasury’s gold.
...

Fed Chair Tight-Lipped on Foreign Nations’ Evacuation of Gold from U.S. | Headline USA

(Ken Silva, Headline USA) Concerned about a weaponized financial system, many countries have signaled plans to remove their gold and other assets from the U.S. in the wake of the unprecedented Western sanctions imposed on Russia over its invasion of Ukraine. And at least one congressman is...

headlineusa.com

JPow's letter:

https://www.moneymetals.com/uploads/content/Chair-Powell-to-Rep.-Mooney-2.23.24.pdf

 

[pmbug]

Some context for the news quoted below:

March 2013 - Dutch banking giant ABN Amro halts physical delivery of gold to clients.

June 2013 - Dutch banking giant ABN Amro is nationalized and officially announces a halt to physical delivery of precious metals (including gold) to clients.

2014 through 2015 - The Dutch (and Germans) repatriate at least 207 (combined) metric tons of gold from the Federal Reserve vaults.

April 2019 - Dutch National Bank explicitly states that gold reserves can serve as the basis for rebuilding if the financial system collapses.

Late 2022 - DNB Governor explicitly mentions the bank's gold reserves as a solvency backstop.

Nov 2023 - DNB publicly shares that it has equalized its gold reserves, relative to GDP, to other countries in the eurozone and outside of Europe. This signaled their readiness to respond to a financial crisis and underpin a new gold standard.

Aug/Sep 2026 - DNB repatriates 86 metric tons of gold from Federal Reserve vaults.

As you can see, repatriating physical gold isn't novel to the DNB (Dutch National Bank). They are also more open/honest about gold's role in their financial/monetary policy than most central banks.

So why repatriate more gold now? I'll take them at their word that want to have it more readily available for use in global markets if necessary. Maybe "if necessary" is getting closer than most would like to think.