It’s now been a year since Germany announced that it was recalling gold that had long been stored in New York and Paris. The Bundesbank (Germany’s central bank) said that the purpose of the recall was so that half of Germany’s gold reserves would be stored in Frankfort.
At last report, according to the IMF Germany owns 3,387.1 tons of gold reserves, with 440.32 tons stored at The Bank of England, 372.58 tons at the Bank of France, 1,524.20 tons with the Federal Reserve and 1,050 tons in Frankfurt. To achieve the goal of 50% of German reserves being stored at the Bundesbank, all 372.58 tons were to be removed from Paris and 300 tons from the Fed.
The stunning aspect of the announced repatriation came with the revelation that the Fed would take seven years to deliver 300 tons. Why seven years? So far, the Germans have received 37 tons, with only five tons from the Fed.
Glenn Beck has joined in the speculation as to why the Fed cannot immediately ship 300 tons to Frankfort. Beck discloses his suspicions in a 20-minute video.
Before watching the video, know that the Fed does not “owe Germany 300 tons of gold.” If so, the Fed could ship any 300 tons, but the Fed is supposedly holding for Germany specific bars, probably bearing German hallmarks. Note how Beck handles this issue.
In 1933, President Franklin Roosevelt reneged on the government’s promise to Americans that they could redeem their paper money in gold.
In 1971, President Richard Nixon “closed the gold window,” which meant that foreign central banks could no longer turn in dollars for gold.
In 2013, the Germans learned that they cannot get–in a timely manner–gold that they have stored with the Fed.
Is there a message here, like gold is not safe when stored with a government? Perhaps Beck’s speculations are not too far off.