Wednesday, January 16, 2013

Germany wants its gold back

Suddenly after months of mocking those calling for an audit of German gold held in the US as kooks and conspiracy theorists,  the Germans decided they want their gold back.  For some reason it is going to take seven years to return 300 tons of gold, even though the Fed says it has 6,700 tons.  They are also requesting all 374 tons held in France.

For comparison, Hugo Chavez repatriated 110 tons in the summer of 2011, gold went from the $1600s (roughly where it is now) to the all-time nominal high of almost $2000.  The last time Germany repatriated gold was 1000 tons from the UK.  Between 1999 and 2002, The Chancellor of the Exchequer, Gordon Brown, (basically their Treasury Secretary) conducted pre-announced sales of 60% of the UK's gold reserve under the absurd pretext of diversifying away from volatile gold into the more stable Euro. The real reason was to drive the price down to a low of $252 - known today as "Brown's Bottom" - in order bailout the banks that had already swapped the UK's gold for cash.   Gordon Brown's reward for dumping 60% of the UK's gold at massive low point: election to Prime Minister of course!

No comments: