Translated by Ollie Richardson for Fort Russ
28th January, 2016
The Bundesbank of Germany has returned their gold reserves from the USA and France. In 2013, they began a program to return 300 tons of the precious metal from the U.S and 374 tons from France. A complete return of the gold is planned by 2020.
The story of German gold goes back a long time. The public has repeatedly demanded from the authorities to return the gold reserves in Germany so the USA could not use it as leverage. However, the United States, under various pretexts, delayed the process. In 2012, Germany was not even allowed to inspect their own gold reserves. In 2013, Germany was able to only get 5 tons of their gold back.
There is an opinion that something is wrong (not corresponding to standards) with German gold. The Central Bank of Germany warms up these doubts by not releasing detailed data about the return of bars. At the moment the German gold stored in the United States (39.9 per cent), France (5,8%), UK (12.9%) and Germany (41.5 per cent). Before the start of the program, 45% (1536 tons) was kept in New York.
Germany is not the only country which carries out the process of withdrawal of gold reserves from the vaults of the fed. Mass withdrawal of gold began in early 2014. In September 2015, a record low margin of 5950 tons was at the Fed (the most recent such situation was observed in 2008). According to the FRS, from January 2015 124 tons of gold was removed.
Obviously, the credibility of the fed has fallen, with the destabilizing role has become particularly evident in recent years. Any action or even hints about the intentions of the Fed raising or lowering rates causes the turbulence in global financial and commodity markets.
In recent years, China increased its purchases of gold in parallel with dumping U.S. government bonds. In 2016 the people’s Bank of China plans to purchase 215 tons of gold. This step is aimed at reducing the risks for the Chinese economy.
From the beginning of 2016, the gold price increased by 5.5%. Amid falling oil prices and equities, falling stock indices, investors buy gold as a flight from risk. Gold stocks on the New York COMEX fell by 73%, as a result of reduction of stocks in storage Scotiabank, HSBC, and Brinks. At the end of January, 99,81% of traded futures are not backed with physical metal.
The process of withdrawal of their gold reserves shows that the US is no longer considered a reliable place to store gold reserves. The aspiration to protect the country from the intrusive influence of the US is growing.