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Why is Germany bringing Tons of Gold back home?

Germany’s central bank is bringing home gold reserves stored in places like New York and Paris faster than planned. The schedule was set for 2020. The move has the world puzzling as confidence in the euro ebbs even in the heart of the currency bloc after a decade of a sluggish economy.

According to a Bundesbank statement,

Germany’s central bank has completed an effort to bring home 300 tons of gold stashed in the United States, part of a plan to repatriate gold bars kept abroad during the Cold War.

The Bundesbank said 111 tons of gold were brought back from the Federal Reserve in New York in 2016, the last of 300 tons slated for return.

It also repatriated 105 tons from Paris.
The bank in 2013 launched the transfer to Frankfurt of 300 tons of gold from New York and 374 tons from Paris. It still has another 91 tons to return from Paris.

Once the transfers are completed this year, Frankfurt will hold half of Germany’s 3,378 tons of reserve gold, with the rest in New York and London.

Why does Germany do that? There are several scenarios:

  1. German public has grown uneasy about keeping the gold abroad
  2. The gold reserves may be needed to back a new Deutsche Mark, should the euro zone break up.
  3. Germany is afraid of Donald Trump (gold reserves in New York)
  4. Germany is afraid of Marie LePen (gold reserves in Paris)

IN a relevant article Reuters writes:

Stashed away at the height of the Cold War in safe havens well out of Moscow’s reach, the 3,378-tonne, 120 billion-euro (102 billion-pound) gold stockpile has become a symbol of Germany’s economic ascent and a guardian of its stability.

But with Europe stumbling from crisis to crisis, the German public has grown uneasy about keeping the gold abroad. Some even argue the world’s second biggest bullion reserve may be needed to back a new deutschmark, should the euro zone break up.

Having already moved 583 tonnes of gold out of New York and Paris, the Bundesbank plans to have half its gold in Frankfurt by the end of 2017, years ahead of its 2020 schedule, with the rest split between the Federal Reserve Bank of New York and the Bank of England.

“We have a lot of discussions about (U.S. President Donald) Trump, regarding implications on monetary policy, macroeconomics, etc., but we trust the central bank of the U.S.,” Bundesbank board member Carl-Ludwig Thiele told a news conference.

“Trump has not triggered a discussion about the storage facility in New York,” he said.

With French Presidential candidate Marie Le Pen and Italy’s 5-Star Movement openly campaigning to pull their nations out of the euro, confidence in the common currency appears to be waning. (full article Reuters)

I wonder, whether these repatriated gold reserves include also the tons of gold Germany confiscated from Greece in the years of WWII occupation.

PS Schaeublee must be really concerned about the future of his beloved eurozone – he said something relevant yesterday on ARD.

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11 comments

  1. The answer is none of those. Germany is preparing for the possibility of world war (which will not be caused by Germany, to be clear…). The Germans always plan ahead.

  2. Allow me to differ. Germany does prepare for war in Europe, a war they are going to cause. The dissolution of the Euro, which thanks to Germany has become unsustainable, will bring the dissolution of the EU and, in a few years, the usual war stories will start. Most likely causes are the Balkans, Ukraine, or Greece-Turkey. A by-then-well-armed, but in economic decline Germany (due to its then hugely appreciated currency and declining exports) will be only too happy to jump in when the smell of blood becomes strong.

  3. It’s like how GR wants all of its assets out of GR well DE wants all of theirs back as they feel safe!

  4. Giaourti Giaourtaki

    They’ve announced this already in 2013.
    As far as I understand it’s all from their legendary Wischiwaschi-“Wirtschaftswunder” times of the 50ies, most exports were paid in dollar then and they’ve changed it on location into gold.

    So of this definitely all belongs to Greece as the legend was no miracle but the result of cutting and “forgiving” war-debts, Marshallboobs filled with Dollars, robbing Jews and pillaging Greece and others, their whole gold belongs to Greece, but it’s only 120 billion worth.
    All gold they’ve robbed and didn’t take for their war and corruption they’ve put into banks in Switzerland.
    Tsipraki, how much do I get for this important information that will save Greece? A villa on Imia?

  5. I have read shocking accounts on the estimated amount of stolen gold from occupied countries (including Greece) and individuals (mainly Jews) the Nazis took, which (with the tolerance of the US) today’s 4th Reich still holds.

  6. Tsipraki to Giaourti Giaourtaki: You get nothing, Greece gets nothing but I get all!

  7. I hope you are wrong. My assumption is that the USA will cause the next world war, but I concede that history is in favour of your theory…

  8. Giaourti Giaourtaki

    It’s mainly Jewish gold put in Swiz banks, also the first thing they did after invading was robbing the central banks, it’s crazy that this was also a real “economic war”, when invading Poland they’d have been out of ammunition after 14 days, because they’re broke not only from building the motorways for their tanks. Opposite to most myths the winter of 39 was cold in the Reich as lots of Germans had still problems with money for heating.

  9. Giaourti Giaourtaki

    One good has the shit, it’s lots of good music in Greece the last times, not sure if the new Panx Romana album would’ve ever come out without crisis, though.

  10. Why? Because if the FED is going to raise interest rates as they plan then the SHTF. Major recession on its way. And gold is just like any other community: if you don’t hold it, you don’t own it. And “paper” gold or silver is only worth the paper that it is written on.

  11. I will give you this, something is being cooked up right as we speak. Possibly in the regions that you mention. Strange things happening there.