Sunday, 10 February 2013

Bundesbank repatriating Gold reserves

By the Numbers

"According to the NY Fed, there are about 530,000 gold bars, with a combined weight of 6,700 metric tonnes in the Fed’s Lower Manhattan vaults. The gold is stored in the fifth sub-floor of the New York Fed building on Liberty Street, 80 feet below street level.

Each of the 530,000 gold bars weighs 400 troy ounces, or about 12.44kg. The 400-ounce gold bar is quoted at $677,640. Each metric tonne of gold is worth approximately $55 million. The total value of the New York Federal Reserve’s gold bullion trove of 6700 tonnes is $368.5 billion.

98 per cent of the gold bullion stored in the NY Fed’s lower Manhattan vaults, according to the Fed, belongs to central banks of foreign countries. The remaining 2 per cent “is owned by the United States and international organizations such as the IMF.”

"The Bundesbank has scheduled a news conference for tomorrow, but there are no details, other than that the meeting with reporters will be about its gold reserves.

But Handelsblatt, a daily German paper, reported that the central bank will bring home some of the 1,500 tons held at the Federal Reserve in New York and more at the Bank of Paris.

The Bundesbank says it holds almost 3,400 tonnes of gold that was valued at €132.8-billion ($176.6-billion U.S.)

Of that, the Bundesbank holds more than 1,000 tonnes in Frankfurt, the Fed more than 1,500 tonnes in New York, The bank of France almost 400 tonnes in Paris, and the Bank of England 450 tonnes in London.

In total, there are more than 270,000 bars."

This MIGHT be one of those "tipping point" situations citizens, with many others potentially following the move to hold physical as opposed to "paper". The conspiracy theorists will be smoking hot after this one, and if any of their many prognostications become reality we could see a significant bull run on Gold.

"Veteran gold trader Jim Sinclair said the Bundesbank’s move is a pivotal event in the gold market and the latest warning for investors that they should keep metal bars under their physcial control, rather than relying on paper contracts.

"This sends a message about storing gold near you and taking delivery no matter who is holding it. When France did this years ago it sent panic amongst the US financial leadership. History will look back on this salvo as being the beginning of the end of the US dollar as the reserve currency of choice," he said."