Saturday, January 19, 2013

Any Questions As To WHY Germany Wants Its Gold?

[The Bundesbank] isn't getting what they want, the Federal Reserve is telling them what they can have.  The fact that they're doing it over 7 years instead of 7 weeks, to me, is just an indication that that gold probably isn't in the Federal Reserve and the Federal Reserve doesn't want to have to go out and buy it overnight to fulfill the German demand. They are trying to stretch it out as long as possible in order to keep gold prices controlled.  James Turk on King World News
You can listen to the above interview here:  LINK  (highly recommended).  Mr. Turk's viewpoint echoes that of many of us who have studied the gold market for quite some time, including the paper vs. physical issue which is at the heart of the topic.

With that said, the debate is now getting into the mainstream media.  I was quite shocked to see that CNBC enabled this very debate to air on its programming, especially given that CNBC had GATA's Bill Murphy on in February 1999 - only to never invite him back again after he discussed some of the issues in the video below from yesterday:

One thing that has taken me by surprise are the sudden and unexpected developments that have instantly thrust the physical vs. paper issue into the forefront.  The Bundesbank event followed by the U.S. Mint announcement has made a much wider audience more open minded about the issues surrounding credibility of bullion bank gold/silver depositories and the ability to verify whether or not the gold/silver that is supposed to be in those depositories can be fully accounted for on an allocated basis. 

Certainly the circumstances surrounding the Bundesbank's decision and the length of time being given to fulfill it's request adds credibility to the view that western Central Bank and bullion bank depositories do not have the amount of gold they are supposed to be holding on behalf of others...


  1. I love it! "Not a big deal, because nothing is backing it. No mortgages...."


    And exactly how do you go and buy x% of the world's gold to give to Germany if you don't have it? Despite the fact that gold is really sort of irrelevant because it's "not backing anything"?

    Do you expect the strong hands to take your bullshit "not backed by anything" paper for, what would now appear to be, EXTREMELY desired physical gold?

    What makes anyone think they can buy anything with toilet paper?

    Ha Ha. Holy shit!

  2. Gold reserve mysteries

    Instead they plan to do it over the next seven years, which is a postponement. This tends to confirm suspicions that the gold does not actually exist. As a side issue, along with the Bundesbank statement is a PDF download with slide number 14 entitled “Storage at the Federal Reserve Bank New York”. It looks like a photomontage rather than real gold, and the come-on is to believe it’s the Bundesbank’s. This gives the game away: the whole exercise is a public relations stunt.

    Why hold any gold in New York nowadays? The Soviets are no longer menacing the Fulda Gap. Yes, New York is obviously still a critical trading venue, but not for physical gold – the Bundesbank apparently withdrew 940 tonnes from the Bank of England in 2000, where the physical market is actually located.

    The reason this matters is that independent deductive analysis has concluded that the central banks have been supplying the market with physical bullion in order to suppress the price, all of which is either officially denied or goes unanswered. The origin of price suppression actually go back to the 1990s, and was exposed by Frank Veneroso in a paper published in 1998, confirmed by detective work from our own James Turk, and triply confirmed by the evasive responses on this issue given by central banks and the IMF to the Gold Anti-Trust Action Committee (GATA). The public are unaware of this issue because the mainstream media, with the occasional exception, refuses to investigate the subject.

    But here is something that joins up a few more dots. We know that Gordon Brown sold half of Britain’s gold at the bottom of the market from 1999-2002. We commonly assume that he was just incompetent. What is not commonly appreciated is that he learned his economics from Ed Balls, the current Shadow Chancellor. As his economics advisor, Balls was the puppet-master and Chancellor Brown the puppet. Ed Balls was also a close friend of Larry Summers, who was US Deputy Secretary of the Treasury from 1995 and then Secretary of the Treasury from 1999 to 2001 – the time of Britain’s gold sales. As Treasury secretary Summers was head of the Exchange Stabilization Fund, the US government’s mechanism for supplying bullion to the markets. In the light of these deeply Keynesian relationships from the mid-1990s, it is unlikely that Brown acted in isolation. More than likely Washington was also supplying the market through swaps and leases that were never recorded as changes of ownership.

    The net result is that there is not enough physical gold left in the vault to deliver to Germany, which is why they are stalling for time. What was presented to us last Wednesday was just a desperate attempt to stop the whole issue becoming more public.

  3. Max Keiser says that at some point a central bank will print money to buy gold and then it's all over for the current fiat currency regime.

    Now, the Federal Reserve doesn't have the gold to send to Germany--so isn't that exactly what they will need to do? Of course, as secretively and deviously as possible.

  4. Pacific Group Latest Hedge Fund Buying Physical Gold - Converting 1/3 Assets To Gold

    Central banks internationally, from Ireland to Germany and now in Sweden, are
    being forced to answer legitimate questions about their gold reserves by
    concerned citizens.

    Swedish gold reserves are 126 metric tonnes
    and are valued at almost 45 billion Swedish krone.

    The Riksbank confirmed that the majority of Swedish gold reserves are located

    Another respected hedge fund, the Pacific Group, has decided to convert one
    third of its hedge-fund assets into physical gold.

    The Pacific Group Ltd.,
    which manages assets of over $100 million, believes that gold will continue to
    rise as governments print more money to pay off debt according to Bloomberg.

    Thus, continues the
    trend of some of the smartest money in the world diversifying some of their holdings
    into physical gold.

    Respected hedge fund
    managers and investors such as George Soros, John Paulson, Bill Gross, David
    Einhorn and Kyle Bass have diversified into gold - the latter two opting for
    the safety of allocated physical gold bars.

    The Hong Kong-based
    asset manager plans to take delivery of $35 million worth of gold bars that can
    be traded on the London Bullion Market Association and other international
    markets, William Kaye, its founder and chief investment officer, said in a
    telephone interview on January 18.

    It has secured vault
    space at Hong Kong International Airport to store the gold, he said.

    Putting His Mouth Where His Money Is:

    That's right: 60% of Edelweiss' capital is allocated to PMs, as over the past 7 years, more and more cash was allocated to gold, silver and the like. This is orders of magnitude more invested in real assets than most other "wealth preservation" funds will allocate to the sector.

    Why are central banks buying more gold than at any time in 50 years?

    New gold buyers

    The main buyers of gold are the rising powers of the East, including Central Asia and Russia, as well as Latin America. China has declared its intention to double gold consumption to 1,000 tonnes a year over the next three years while energy-rich Russia wants to exchange black for yellow gold. India is raising taxes on gold to dampen gold imports that are damaging its balance of payments.

    Asia and the commodity producers holds two-thirds of the world’s $11 trillion in foreign reserves and its central bankers know very well that the US dollar rests on a pyramid of debt with a central bank that would dearly love to pass on all its problems to the rest of the world by devaluation.

    Central banks are the guardians of the national economy unless they fall into bad hands. They are also usually pulled in many directions and try to find a balance that is the security they have as their mandate.

  5. Monetary (currency) disputes and financial shocks.

    [as the current global eceonomic system deteriorates, the instrument by which the system was created from and relies on - USA - becomes distrusted and eventually shun by the rest of the community. Other countries will be following Germany's footsteps. No one wants to go down with the ship.]

  6. Scot who lost his life savings when RBS collapsed vents his fury as taxpayers are hit with Fred Goodwin's legal bill

    A SCOT who lost his life savings when RBS collapsed is furious taxpayers will foot a huge legal bill for shamed banker Fred Goodwin.

    The bank – 82 per cent owned by the Government – are expected to pay for ex-boss Fred the Shred’s representation when they fight a £4billion lawsuit.

    The action is being brought by the RBS Shareholders Action Group, who claim the bank misrepresented their financial health when raising £12billion by selling new shares in 2008. Then the bank’s shares nosedived and Gordon Brown’s government had to pump in more than £45billion of public money to keep them afloat.

    Dr Colin Manlove, a retired university lecturer, who lost £100,000 in the collapse, is one of 12,000 ex-shareholders involved in the action. He said: “This is an absolute disgrace. There’s no question that Goodwin should have to pay his own legal fees.

    “What this shows is that there is a small group of old cronies who run this country and he is still one of them.”

    Colin, 70, of Edinburgh, added: “The public have taken responsibilty for quite enough of the repercussions of Goodwin’s actions.”


    If I was Germany, I would want my Gold back as well. If the Feds couldn't see the Crisis unfold at the end of 2007, it's better to have your resources at your fingertips where you have control and not them. If another crisis takes place that catches the Fed off-guard, it will tarnish their image and even cause more loss of respect in the global community. It will cause the US Dollar to plunge and Precious Metals to soar. The various countries buying up precious metals (to me) seems to indicate that they are worried about this scenario happening.

    CNBC has an article stating 4 good reasons to be Optimistic in 2013 while also posting that Worldwide Unemployment for 2013 will break 2009 record and continue going up till 2017. Looks like they might be taking lessons from the Feds. With such predictive powers (sic), is it any wonder that so many have anixety and concerns about the direction things are going?