Germany to repatriate & audit 150 tones of gold reserves from ny fed!!!

That is very far out on the limb. I don't think there will be a run on gold simply because it is moved between vaults. And I doubt that the US can confiscate gold held in London.

 

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Nobody wants to raise the price of gold and expose the real value of their currencies. Germany is key to the Euro experiment and would not undermine it. Silver and platinum are the metals that are actually have supply constraints and would be the most likely to go parabolic from a value standpoint. If gold goes parabolic it would be because everything else is from a price standpoint.

 

By the way, tomorrow the Deutsche Bundesbank will present its new plans regarding where the gold reserves are stored. As mentioned earlier in this topic, currently 31% are in Frankfurt while 45% are in New York (Fed), 13% in London (BoE) and 11% in Paris (BdF). According to the Handelsblatt newspaper, those shares will change, ie. more in Frankfurt and less in New York. The "depot" in Paris may be given up, also because it does not make sense in terms of "currency diversification" any more.

Christian

 

Well the largest gold reserve is NOT in Ft. Knox, but the BIS (Bank for International Settlements) in Switzerland. Gold is, and has always been the BEDROCK of all trade.

 

The US (Fed/Treasury) will have less Gold to "play with" - that won't make them happy.
http://www.marketwatch.com/story/gold-futures-tick-higher-in-asia-trading-2013-01-15

At some point, real accounting will be needed, completed and the 'swaps charade' will finally be exposed: I don't see that happening for several years, yet.

 

When is the last time gold was used to settle a trade balance?

 

Sounds like a Game of Musical Chairs to me: "Whose Gold? Your Gold? My Gold? Ha!"

http://blogs.marketwatch.com/thetell/2013/01/15/pimcos-gross-ponders-if-bundesbank-gold-move-means-central-banks-dont-trust-each-other/

 

Well it made for a nice little rally in Gold and even Silver. We're up over a buck since Sunday. Not bad at all!

 

I'm not sure that this qualifies as a trade balance, but it's the closest thing I could find. If nothing else, gold shows its resilience as a functioning currency. This article is almost a year old.

http://www.reuters.com/article/2012/02/09/us-iran-wheat-idUSTRE8180SF20120209

Hardly the "bedrock of all trade", but maybe a more accurate statement would be the "bedrock of many central bank to central bank transactions", even if that's only half true.

 

I think Iran is more the exception than the rule when it comes to trade, but yes, this qualifies.

 

A "watershed moment" !
http://www.telegraph.co.uk/finance/personalfinance/investing/gold/9804444/Bundesbank-to-pull-gold-from-New-York-and-Paris-in-watershed-moment.html

 

Wow,

Nice thread and lots of views. My feeling about Germany repatriating their gold is one of their wanting possession and wanting it audited and assayed. Too many rumours about doctored gold ingots. Too many rumours about multiple owners of the same stash. Not to mention the fact that our gov't is disfunctional and WTF knows what they will or won't do over the next few weeks, months, years.

As for demand for gold - it is so broad and deep and diversified that it's been serving as huge support all through this bull run. I've been following the run since '02 and riding it since 02/03. Not because I'm a gold bug - I'm not. I'm a momentum investor and this has been the mother of all trends. Remember the trend is your friend. Ever time gold has pulled back, it's been less severe and for a shorter duration than all the pundits have predicted. This is due to this broad demand. Geez, you've got CBs adding gold to their treasuries. You've got anyone with a traded surplus with the US adding gold for diversification. You've got the survivalists. You've got the collectors. You've got every female in India and now that the Chinese can own gold, you've got the nouveau riche buying bling.

You don't need gov't sanction for gold for folks to believe in gold. Indeed, the more the CBs discount gold and the gold standard, the more the 'sheeple' believe in gold.

Oh, and I loved the article from Pat Heller. I live in Lansing and Liberty Coin has been my local dealer for some 30 years. Pat's a nice guy but has a tendency to get a bit shrill at times.

and so it goes,

peace,

rono

 

Yeah Rono - interesting to go back to Page 1 and see who dismissed this "possibility" outright, 3 months ago.
Now it's FACT: 600 metric tonnes will be repatriated from the US Fed vaults (300mt now, 300 mt next year or so) about 1/3rd of the German stash in the USA. What effect remains to be seen, as other (reactive?) events develop.

Ambrose Evans-Pritchard calls it a "watershed moment" and Jim Sinclair calls it a "privotal event" : both seems to concur with my earlier idea that it might be the start of the Big Bullion Scramble.

I'll guess if the US govt doesn't move against Gold in the short term, the net result will be bullish for POG (next 3-9 months). The horse has already left the barn? Maybe. I also don't believe future repatriations (of the foreign Reserve in NYC) will be broadcast to the MSM and global gold-hoarders; from now on, the corrupt US govt will become ever more demanding/secretive about encumbered Gold remaining in "our" vaults.

http://www.cnbc.com/id/100382718

 

I heard that this could create a short squeeze because the fed may need to cover any short positions they have on this gold.

 

Personally, I very much doubt that.

1) The Fed knew what Germany was going to do looooong before this "news" was spooned out to the masses.
2) Any 'naked shorts' would have been closed out - IF indeed the Fed is shorting Gold (and THAT is a totally unsubstantiated & wild hypothesis, btw.)
3) Just look at GLD (proxy) or POG charts for the past month: range-bound. IF something was amiss, wouldn't there be greater volatility? (YES, obv.)

While I'm inclined to believe the broadest tenets of the 'managed Gold Price' conspiracy-theorists, incidental rumor-mongering (especially from frankly Gold-buggy sites) should be discounted accordingly. Your rumor sounds dubious, IMO.

 

you guys know that the FED has said they will give back 300 tons in the course of 7 years