Koos Jansen
BullionStar Blogs
Koos Jansen
Posted on 11 Feb 2014 by

Bundesbank Changes Gold Repatriation Schedule

One of the initiators of the German public campaign “Repatriate our Gold” is Peter Boehringer of “German Precious Metal Society” (est 2006). After lengthy efforts together with partner the “European Taxpayers Association”, the team finally, in January 2013, brought about Bundesbank´s decision to repatriate 300 tons of gold from the US and 374 tons from France  by end-2020. Because asking your gold back from the US being quite sensitive, the repatriation would be spread over an eight year period. This was the original allocation schedule for the German official gold holdings, 3390.6 tons, set up in January 2013:

………………… 2013 ……….. 2020
Frankfurt ……. 31% ………… 50%
New York ……. 45% ………… 37%
London ………. 13% ………… 13%
Paris ………….. 11% ………….. 0%

What I just found out, and what presumably few people in the English speaking world knew, was that the Bundesbank had made an earlier repatriation request in the fall of 2012, to ship home 150 tons  from the US in three years (ending in 2015).  So after January 2013 two repatriation schedules co-existed. They were not mutually exclusive – so most Germany expected to see back was 150 tons from the US by 2015 – and ultimately 674 tons by end-2020 from both the US and France.

bundesbank

This was the plan.. But in 2013 only 37 (remelted) tons of gold reached German grounds of which 5 tons from the US. Needless to say, this lifted a few eyebrows. The Bundesbank has now withdrawn the original schedule to repatriate 150 tons from the US before 2015, but continues plan B, to repatriate 674 tons from NY and Paris by end-2020.

The following is the translation of an article written by Peter Boehringer published on Goldseitenblog (click here to read the original post). It’s a response to a full three page title story that appeared in a German newspaper (Handelsblatt Feb 6, 2014, print version only, not online) on the latest developments regarding the gold repatriation schedule discussed in German politics.

German gold: Bundesbank moves away from specific repatriation schedule

by Peter Boehringer , Founder German Precious Metal Society
06-02-14, for Goldseitenblog

Due to new developments, the initiators of the Repatriate Our Gold action today publish a small update. The print version of the German Handelsblatt today (02.06.2014) published a substantial three page feature exclusively on the German Gold Reserves, widely known to be stored by the German Bundesbank, the Fed, the Banque de France, and the Bank of England. Under the ambiguous title “Silence is Golden,” no less than four Handelsblatt editors along with Norbert Häring, a senior and competent voice in matters of Gold vs Money, delivered a piece that is in parts pretty critical against the Bundesbank and addresses questions that are familiar to the readers of this blog.

Handelsblatt

Some of these are the same questions for which we have been labeled as paranoid conspiracy theorists by almost every mainstream publication from the beginning of our initiative in 2011-2012 right up to a few days ago. Questions which, from the perspective of the Bundesbank (BuBa), are apparently too delicate to be answered. But today, the usual rhetorical billy club of “conspiracy theory” is absent from the Handelsblatt piece. Apparently, the German mainstream publication is finally coming to the realization that it would make a ridiculous fool of itself, were it to continue to stick with its conspiracy theory vilification strategy in the face of such overwhelmingly critical BuBa-Gold inquiries from its very own readership, as well as from hundreds of reports from international observers and media, most recently even from the Financial Times.  By now, articles on the German gold repatriation demand of Repatriate Our Gold has even appeared in dozens of Chinese, Russian, American, Indian and African publications.  The German Gold, opaquely held in custody by the Fed & other central and currently worth more than 100 billion Euros, is not only the core component of BuBa’s balance sheet and the property of the German people, but it is also a geopolitical issue and an important founding stone of the suspected world fractional gold banking system.

The Handelsblatt writes today: “The policy makers are putting pressure on the Bundesbank.”

=> To which we reply:  German “Policy makes” have done almost nothing in the past 50 years.  After David Marsh in 1992 and Bruno Bandulet in 2002, and Martin Siegel and Dimitri Speck, Martin Hohmann in 2002 was the first POLITICIAN who at least posed questions – albeit without any results. The same holds for lawyer and member of parliament (MP) Peter Gauweiler. And as a staunch trans-atlanticist, his MP-colleague Mißfelder who currently serves as the German “federal commissioner for the German-American relationship” would never have jumped on the Fed-Gold topic had there not been the mounting public pressure and a need to relieve some of that pressure. In any case, “Policy makers” have not helped us a lot. But at least, a few weeks ago, Mr Mißfelder has finally and rightfully called for the retrieval of ALL foreign holdings of the German Bundesbank (i.e., 2300 tons instead of the planned 700 tons; totally new “dimensions” for BuBa´s imagination…)!

Handelsblatt: “The repatriation falters – for enigmatic reasons.”

=> Don’t let the BuBa hear that Mr. Häring, otherwise you will quickly be labeled a conspiracy theorist.  Nothing is “enigmatic” in the cellars and books of the BuBa and the Fed, absolutely nothing! We are talking (quoting BuBa) about “partner-banks whose integrity is not be questioned,” much like the purity of gold itself.  Let that be heard! ;-)

Handelsblatt: “The Bundesbank no longer feels bound to the [concrete repatriation commitment time table] as they now admit for the first time [towards the HB].”

=> Interesting – because this is in fact the first time that the BuBa is partially revoking their promise, made to the German Bundestag (parliament) in 2012, for a full inventory inspection and a repatriation of “150 tons from New York by 2015″. After the 5 tons retrieved from NY in 2013 and the 30-50 tons announced for 2014, the BuBa seems to already KNOW today that not even 100 tons (= 6.7 % of the portfolio) will be forthcoming from NY in 2015! Honi soit qui mal y pense.  (“Shame on him who thinks evil of it!”)

=> Indeed, in January 2013 BuBa has come up with a new (less specific) repatriation concept that would retrieve 300 tons from NY & Paris by the end of 2020. However, the concrete repatriation time table from the Bundestag hearings of 2012 had thus far not been withdrawn – which is why the above quoted admission of the unfeasibility of repatriation by 2015 is quite remarkable!  And which naturally feeds our mistrust of the Fed’s ability and willingness to deliver the gold.

Handelsblatt: “Due to ‘logistical challenges,’ the BuBa no longer feels bound to its promise to the Bundestag.”

=> We have already dealt exhaustively with this issue in previous articles.  If even the ridiculously low amounts of 80-100 tons of gold per year are too challenging for the Fed and BuBa to transport (and that despite Weidmann’s request for help from the BIS), then one must wonder how back in 2000-2002 nearly 1000 tons of gold were delivered from the Bank of England to Frankfurt without all this fuss and public whining.  The BuBa itself has been claiming this successful transportation performance of the early 2000s since 2012.

=> And quite apart from that, the BuBa is of course free to simply ask the Fed for a swap of their bullion with a European gold holder or international dealer, upon which the bars would simply be retrieved from London, Zurich, or even Frankfurt. No physical transatlantic transport required – and everything guaranteed to be LGD compliant!  The disadvantage would be that we paranoid gold historians would never get to see in Frankfurt the old German bullion from the 1950s and 1960s that are held at the Fed (since they would be swapped with European gold). But that would be a small disadvantage given that the BuBa has already refused publication of any photos or number lists of the already allegedly repatriated and supposedly already re-melted original Fed bullion, due to “security reasons.” In fact, from the perspective of the BuBa, the swap solution would have the great advantage that we would finally have to put to rest the silly and delicate questions about the whereabouts of our original German bullion bars.  But no – even such logistically and legally simple options, by which 2300 tons of overseas gold could be “home by Christmas” are not good enough for BuBa. Honi soit qui mal y pense. (“Shame on him who thinks evil of it…”)

Handelsblatt: “Peter Gauweiler will no longer accept these delay tactics.  He calls for the ‘immediate on-site inspections of the gold stocks and their immediate delivery to Germany’.”

=> Dear Mr. Gauweiler, we happily extend our invitation to you once again to sign the Repatriate Our Gold initiative. Your clearly formulated demands are the same as ours.  Since 2011.  Let us finally reinforce our demands with the will to actually implement them!

Handelsblatt: “In 2012, the auditors of the Bundesbank could visually inspect the German bullion.”

=> It’s Groundhog’s day again.  This statement is not new.  And it remains utterly blank and vague. Furthermore, the BuBa refuses to say anything about who these ominous auditors were (names), when and what exactly they audited, what “visually inspect” exactly means, what inspection reports have been produced and who signed them – in other words, why all this information is being held “confidential”?

=> But wait – we learn some more:  BuBa board member Thiele “personally visually inspected” the German gold stocks in June 2012 in NY.  Well, Mr. Thiele, did you arrive at any counts and inspection results?  And apparently “beyond that” you have also been “in the vaults in London and Paris.”  Did you indeed meet the Queen there during a walk in the depths of the BoE?  Everything was fairy-tale-fabulous there, was it not? And your spokesman also tells us more: “Mr. Thiele could see everything that he wanted to see.”  There is but one question that arises:  what did he WANT to see?  Ninety years ago your predecessor Hjalmar Schacht explicitly wanted to see NOTHING, although at the time the former Fed chairman B. Strong simply could not find any German gold at the Fed (for “fans” of the German Reich’s gold: these were NOT the 3400 BuBa-tonnes of today!).  At that time Schacht had said succinctly: “It doesn’t matter Mr. Strong – I know you are good for it (the replacement gold).”  Hmm – we wonder whether Janet Yellen is also “good for it” in the year 2014?

Handelsblatt: “In addition, an external expert has observed the re-melting of the gold bars.”

=> Oh yeah, baby.  That sounds very good, Mr. BuBa Speaker (anonymous).  If you would now kindly provide and publish a NAME of this “expert”, his exact procedure for the “counting observation”, his signed report and his expertise – after your recent refusal to provide this information to the Handelsblatt upon their request.  Honi soit qui mal y pense.  (“Shame on those who..”)

Let us close this small update today not with our own conclusion, but with these “no-longer-conspiracy-theoretical” findings from the mouth of MP Gauweiler:

“I wonder why the Bundesbank cannot repatriate the gold and then allow it to rest in an appropriate form [as reported by GS Blog from 25.12.2013 ].  My suspicion: Apparently the bars are no longer untouched and available.  This [leads to] the presumption that the gold bars, while in storage, have been used in a manner that lacked transparency.”

=> Conclusion of the Handelsblatt: “Transparency as promised by Bundesbank looks different.”  To be continued.

******
An old piece of advice – relevant both for individuals and for our Federal Bank board managing our gold.  The convenience of naive ignorance will soon cease to work:

“There are two ways to sleep well at night: be ignorant or be prepared.”

Koos Jansen
E-mail Koos Jansen on:

  • Joshua Roberts

    cmon guiz… logistical challenges

  • Josh

    Wondering why nobody sued Bundesbank or German Government to disclose based on the German Freedom of Information Act?

  • Peter Trzaska

    Wow…who would have believed that BuBa doesn’t have the best interests of the German people as a priority? Shocking news! Until one understands the BIS Central Bank System, opens both eyes, and learns to see with eyes which see through the fraudsters’ lies. lcn.freedgold.com/. Venezuela didn’t seem to labour long and hard back at the end of 2011 when she requested repatriation! But then, that deal was sanctioned by those who decide where Gold Bullion resides. Remember Sept, 2011 ….that was when the signal went out loud and clear from those who run this show that the LBMA:comex public paper gold price was going to be allowed to die so that……Gee, go on, see if you can work the why out for yourself. PS. It will help if you ignore the ‘expert’ understanding (haha) of gold marketS(yes, plural)…. See how easy it is when you turn a deaf ear to the experts’ lies and hot air?!

    • esqualido

      For all the ridicule Hugo Chavez received in the U.S. press, the fact that he had the petroleum card got him some respect when it came to his gold. Now Germany gets to know how it feels to be powerless

    • Robert Govan

      Excellent link. This one also has the real gold story. fofoa.blogspot.com

  • Michaelprotects

    Things are getting interesting….

  • Michael

    I would say it’s all been melted and leased long ago. 5 tonnes is all the Fed could scrape together. Can’t take a photo of remelted bars for security reasons, what a load of crap. May I suggest Germany ask for it all NOW. They will never see it though!

  • hambone

    According to St. Louis Fed, the Monetary Base has halted it’s year long consistent $100 B/mo growth and as of Jan, added just over $10 B/mo…bout to rollover and go negative??? Big change in trajectory since November…prior to taper $10B (now $20B/mo taper)???

    here are the last five months…after growing by about $100B/mo all ’13..Novembers growth was $31B, Dec $13B…and likely going negative in next month…

    2014-01: 3,749.462 Billions of Dollars
    2013-12: 3,736.789
    2013-11: 3,705.077
    2013-10: 3,610.306
    2013-09: 3,508.808

    This slowdown in creation of “money” is well in excess of tapering and looks more like reverse repo’s kicking in? Is somebody draining the pool well intentionally???

    http://research.stlouisfed.org/fred2/series/AMBNS

    click on 1yr or 5yr chart to see big change

    http://research.stlouisfed.org/fred2/graph/?chart_type=line&s1id=AMBNS&s1range=1yr

    http://research.stlouisfed.org/fred2/graph/?chart_type=line&s1id=AMBNS&s1range=5yrs

    During periods since ’09 when the monetary base was flat, equities have been down / flat and then lifted by anticipation of QE / QE execution. If this pattern holds (particularly w/ record leverage) stocks bout to get clobbered.

    Also notable is that golds big upside runs happened during the flat periods or QE runoff periods…

  • hambone

    According to St. Louis Fed, the Monetary Base has halted it’s year long $100 B/mo growth and as of Jan, added just over $10 B/mo…bout to rollover and go negative??? Big change in trajectory since November…prior to taper $10B (now $20B/mo taper)??? This is a reduction of flow of $160B in just two months time from previous course.

    here are the last five months…after growing by about $100B/mo all ’13..Novembers growth was $31B, Dec $13B…and likely going negative in next month…

    2014-01: 3,749.462 Billions of Dollars

    2013-12: 3,736.789

    2013-11: 3,705.077

    2013-10: 3,610.306

    2013-09: 3,508.808

    This slowdown is way in excess of tapering and looks more like reverse repo’s kicking in

    Somebody draining the pool well in excess of tapering???

    • Robert Govan

      The Fed has two sets of Books.

  • 24 carat

    Since the London Gold Pool and 1971, most of the Anglosaxon public/central bank goldreserves must physically have gone *private*. Dollar reserves are not redeemable for physical gold anymore. So,…what’s the purpose of keeping physical goldreserves safe in US/UK vaults. *F…ck the EU* and all those who want physical gold as a central bank reserve. Put papergold contracts on your balance sheet as a bookkeeping entry. There is no gold exchange standard anymore. Back your currency with papergold.
    US to Germany : What do you need physical goldreserves for !? What are you planning to do with it ?
    Isn’t it enough we (the $-regime) *organise* the appropiarte goldprice…
    Idem for China. WHY (what for) are you accumulating physical gold reserves !? The entire globe is still on the dollar (non) standard, aren’t we.
    Am playing the devil’s advocate here. The physical gold reserve advocates must come up with good answers on the above questions (AA attitude versus gold).

  • Wiseman Sayeth

    If the truth comes out with a certainty… that is, if the Bundesbank admits that they know that the Federal Reserve no longer has the German gold, the entire world financial system will collapse, because the dollar will collapse. This will bankrupt Deutsche Bank and a number of other financial institutions with which the Buba has very close interrelations. They have no choice but to keep silent, if they can, and to make excuses and finally, outright lie, as they have been doing, when outsiders refuse to allow them to keep silent.

  • Wiseman Sayeth

    I would note that this means that someday the truth will come out, and the corrupt US Federal Reserve and its casino banking cartel, will be fingered as culprits, for having converted gold belonging to other nations to enhance the profits of the cartel, but it won’t happen until Buba manages to lessen the susceptibility of German banks to collapse of the US dollar. I would note that 2020 seems like a reasonable goal post for achieving that transition, and, no doubt, that is why it was chosen.

    • Andrew Patton

      And the only common shareholder of that cartel is none other than the US Treasury.

  • hellbentgerbils

    Dude, just say it, ” the gold is gone “. Pres. Johnson and the Fed started the scam in the 60s…
    and now………….IT’S JUST GONE ! If your kid answered your questions like Buba and the Fed,
    he would get an ass tanning.

  • FreeOregon

    The Germans are not ready to declare their independence.

    Though the US lies and continues to lie, the Germans are too afraid to live free.

    Will freedom take another generation?

  • Digby Green

    instead of doing QE why doesn’t the Fed admit it has not got it and then just buy some gold and then ship it to Germany.

    It would only take a few months.

    Id like to see a video of the inside of the Fed Reserve and Fort Knox.

    Does anyone work there ?

    • Andrew Patton

      Because the Federal Reserve doesn’t have the capital to fund such an operation. They can’t just print money to buy gold and then deliver that gold; that would put a liability on their balance sheet that they don’t have the assets to cover, which is a violation of their charter. They could present the roughly $11 billion they have in gold certificates to the Treasury and demand delivery at the rate of 1 oz/42.22 Au$ out of the US Mint’s gold stock, presuming that the mint can redeem those certificates in a timely manner (e.g. over the course of five weeks).

      • Wilbur

        The Fed violate their charter. Not a chance ! As the article says – – – –

        “The convenience of naive ignorance will soon cease to work.”

  • Agent P

    Wasn’t there something about the Fed ‘bailing out’ Germany a few years back during all the hoopla…? Other than being a willing puppet of the U.S., wouldn’t those actions by the Fed be reason enough for them to be the ones dictating the rules of return for Germany’s gold…?

    • In Gold We Trust

      Good point. I remember the Fed bailed out half the world in 2008.

  • Roland

    when Hjalmar Schacht, president of the Reichsbank at the time wanted to audit the German gold in NY 1943 he was told that the gold is “unfortunately misplaced and can´t be located by the staff at the moment” … ;-)

Copyright Information: BullionStar permits you to copy and publicize blog posts or quotes and charts from blog posts provided that a link to the blog post's URL or to https://www.bullionstar.com is included in your introduction of the blog post together with the name BullionStar. The link must be target="_blank" without rel="nofollow". All other rights are reserved. BullionStar reserves the right to withdraw the permission to copy content for any or all websites at any time.