This could very well be the beginning of the most important story in a long time for gold investors. “Will Germany get its gold? Grant Williams wonders!
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Thanks for the input, Bron.
Valuable points,
Big Al
Hi Bron,
Good comment. You’re a smart guy so I know you well-considered the point, but regarding “Because I do not think it is credible that a central bank would lease the metal another “friendly” country has held with it as allocated without the knowledge of that country,”, I just have a gut instinct that gold would (and was) hypothecated, either because the lending country didn’t know or didn’t care.
Many nations didn’t care about LIBOR rigging, or money & property bubbles (UK, Ireland, Spain, Iceland, etc.), which they must have known about, or for that matter, even cared about their gold until quite recently. Many ministers in the EU still view gold with disdain, at best a one-time asset to sell, in the realm of doomsdayers like Nigel Farage. But who really knows? As you say, I wonder what Germany will actually accept versus what they say they want.
Certainly unallocated gold with a bullion bank is lent, but we are talking about central banks (not politicians) holding gold with other central banks. CBs know exactly what games the other CBs get up to, because they are a CB themselves!
Therefore I don’t think they are all that uninterested in gold. Don’t be fooled by stupid statements like Ben B’s “we hold gold because it is tradition”. They know exactly what gold is and why they hold it (in extremis).
I don’t think any CB allocated is being lent or that Germany thinks it is being lent, I think what this action may show is that Germany is worried it might be lent in the future. Note they are taking all from France, who doesn’t have a world reseve currency like the US and who is in an unhappy Euro union with Germany.
Good topic for the upcoming Weekend Show, Bron.
Will talk with you later today
Big Al
If Nixon told the French ,to take a hike, Obama….can tell the Germans, he lost the key to the vault at Ft.Knox….
So true, The Tall!
Big Al
Didn’t Jim Rickards suggest that the USA could do just that and essentially expropriate all the foreign gold held within its shores and settle in cash? I don’t think it would be very good karma though, if the USA did that.
Did I hear that Germany was going to repatriate 150 tonnes of gold or 50 tonnes per year, only a fraction of the total.
Can’t fina any mainstream referencee to this though. Only Zerohedge and Fabian4Liberty, etc. Actually, it apparently comes from a quote out of Spiegel.de :
Sometime,,,,the owners of the gold,,,,are going to find out,,,,,the lock box with the information, which details and accounts for the balance of each owner of gold bar, ,,,,,has been misplaced, and the records have been deleted from the big computer in the sky…….and the ownerhip is in question…….
this type of news should be gold price friendly, however, this will back certain parties into a corner, and those parties have one recourse that they use–sell , not sell, “flood” the futures will naked short sales.
Or is now the time they have to throw in the towell?
If it is their money, no. If its OPM, (aka taxpayer) what the heck.
Interesting points, Hal
Big Al
I believe this is a non-event as one of the original news releases qualified that Germany was only asking to repatriate 50 tons per year for 3 years which is fairly insignificant to the Central banks. They went on to say they needed their gold to be subject to audit as well which kind of indicates that german central banks are in on the con. Somehow they have to arrange the deck chairs to “those who are becoming wise” to the shenanigans.
I did not realize it was actually 50 tons per year. Thanks for bringing that up FIH
Big Al
Agreed.In on the con for a long,long time.
The Bank of England holds 5 tons of Irish gold.
I DO NOT THINK THAT WAS BY CHOICE…….England has held Irish gold….since 1300-1400’S….England has always had some type of control over the IRISH goldandtribute…., BUT, I think IRISHTONY, has turned the tables on the queen, and has got some of that gold back
Some family history lore tells of an Irish leg of the family that fled to America under cover of darkness in the 1850’s so as not to be shot by the British……Anyone who doesn’t grasp that the same bloody English elite that George Washington and Benjamin Franklin fought against were the grandfathers of the same English elite that bribed Congress on the way to the crime of ’73…. & were the same English that pompously declared, “The sun never sets on the Bristish Empire”…..
More of their grandchildren are still with us today…except we, the USA— ARE THE F’ING RED COATS! Today the sun doesn’t set on the American War Machine….but its still the same English elites playing the same deadly game.
Hell no, Germany won’t get their gold.
Thanks for the opinion, MNH
Big Al
The sun never sets because they stole everything they could get their hands on and killed all those in their way.
Then it was done monetarily,as it has been for some couple of hundred of years.
Now the same actors have put their money down in Asia and their beloved Britain(outside the square mile,of course) and America are going to have to pay.
It’s just your turn,so don’t take it personally.
I think this is just a political move to pacify the rumblings going on in Germany. Pulling metal out of France I don’t think will be a problem as that is not a settlement location for gold so that metal is most likely allocated and always has been.
The key is the metal in the Fed, but then the report only says “some” of it will be taken.
Because I do not think it is credible that a central bank would lease the metal another “friendly” country has held with it as allocated without the knowledge of that country, if indeed Germany has been lending it will only take delivery of what it knows it has as physical. There won’t be any failure to deliver.
It will be interesting to see if Germany actually ships metal from the Fed, or whether it swaps its with a bullion bank, who would probably be happy to take physical in the US in exchange for metal it holds in Germany (or London, which would probably be less costly to ship from).