I wrote a piece yesterday asking the question “What happens when central banks don’t trust other central banks?” Since then, The Telegraph has written that Germany “repatriated” nearly 1,000 tons of Gold in the early 00′s from London. Was it really repatriated? Was it actually swapped or leased out instead? Was it sold? How would anyone know without an audit?
It has been explained that physical “audits” where German officials get to view their Gold will be difficult because they can’t find “rooms” that are “suitable” for such action. Huh? No “rooms” at The Bank of England where the Gold can be viewed? Umm, really? You can’t come up with something better than this? It is also said that this Gold was repatriated because the “storage costs” were too high… Really? Were they higher than what the U.S. or France charged? And why is it that only now, when the THREAT of audit is revealed that the German people find out that 940 tons of their gold was already moved? So now we find out that 95% (if you add up the percentages allegedly held abroad) of their Gold was not even held in Germany for fear of being overrun by Russia.
But wait a minute, first off, I can remember reading back in the early 00′s that Germany held 1,700 tons with another 1,700 held in New York. But now, apparently New York has 1,700 tons, Britain 500, Germany 940 and held in France is “8%” (this is of the “unallocated type” without serial numbers, as in “trust us… it’s all here”). 8% of 3,400 is 270+ tons, so when we add all of this up we get 3,410 tons… What about the other 5% that was held in Germany? Doesn’t that add up to another 170 tons with the total now being 3,580? Did these little ingots do a little breeding while we weren’t watching? Maybe my math is wrong and someone can correct the error here.
If my math is not wrong, do you know what I’m thinking now? They REALLY need an audit… BADLY! It looks like one of those shell games that you see on the street corners in N.Y.. “It used to be here, it used to be there, no, wait, there it is!” And here I was thinking that if ANYONE, really and truly had the Gold that they claimed, it was the Germans. I figured that they were still petrified from the hyperinflation that was unleashed in the 1920′s that they of all people would never ever sell, lease, swap or even let out of their sight 1 single ounce of Gold. Yet for all these years they accepted “trust us it’s all there” without ever an audit or inspection with either 95%, 100% or 105% (take your pick) of their Gold reserves? It really doesn’t make much sense, especially when the DMark has been and still is considered a “hard currency” and the cornerstone to the European fiat experiment.
It does make you wonder a little bit doesn’t it. Who really has “the Gold?” Does the U.S. have what they say they have? How about Britain, France and Italy? While we are on the topic of central banks “not telling the truth” (otherwise known as lying) about how much Gold they have, the biggest liars on the planet are probably the Chinese followed by the Russians. The only difference is that they have been hiding, underestimating and outright not reporting their hoarding of Gold. Strange don’t you think? The West is doing the best they can to portray lots of Gold while the East does the opposite. It doesn’t make any sense at all until all of a sudden it does… like a trap door!
P.S. if I were a betting man, I would bet that the Chinese know exactly, down to the ounce how much they have and their last audit was done within the last 12 months… checked and re checked!