As progressives openly advocate the coining of a pretend trillion dollar platinum disc and the Fed continues to balloon the world’s stock of dollars, Germany is bring home a good part of its gold bullion currently held in the Federal Reserve Bank of New York, and all of its gold held at the Bank of England in London. It’s a sign that the Fall of the Dollar as the World’s reserve currency is officially underway.
No doubt we will be reassured that there is nothing to worry about here, but it is a clear sign that gold is going to be playing a larger role as a store of value for nations as well as individuals.
Ambrose Evans-Pritchard of the UK Telegraph writes:
Germany’s Bundesbank is to repatriate gold reserves held abroad to tighten control and combat currency crises in the future, pulling a chunk of its holdings from New York and all its bullion from Paris.
The move marks an extraodinary breakdown in trust between leading central banks and has set off ferment among gold enthusiasts, with some comparing it with France’s withdrawal of gold from the US under President Charles de Gaulle as the Bretton Woods currency system crumbled in the early 1970s.
Handelsblatt said the Bundesbank will announce on Wednesday that it intends to relocate the gold to vaults in Frankfurt, said by insiders to include parts of the old archive library. Germany has 3,396 tons of gold worth roughly £115bn, the world’s second-largest holding after the US. Most of the reserves were stored abroad for safety during the Cold War.
The bank holds an estimated 45pc of its gold at the US Federal Reserve in New York, and 11pc at the Banque de France, lower than originally thought.
h/t Mr. Feather