Bundesbank said Germany does not intend to maintain gold stockpiles outside the country any more.
SHAFAQNA (Shia International News Association) – According to German media Bundesbank wants to reclaim some of its vast gold reserves held in the US and France after an audit condemned the central bank for mismanagement. Apparently Bundesbank failed to verify the vast gold reserves physically. Bundesbank plans to withdraw its entire 450 tons of gold bullion from the Bank of France in Paris, and a portion of the 1500 tons currently held by the New York Federal Reserve.
Germany has the world’s second largest bullion reserves at 270000 gold bars worth 177.5 billion dollars. The world’s largest gold reserves belong to the USA. Germany’s gold was deposited abroad during the Cold War due to fears of a possible Soviet invasion. Bundesbank said Germany does not intend to maintain overseas stockpiles any more. The bank will keep small amounts of gold abroad for trading purposes. Currently about 30 percent of Germany’s gold reserves are held in the country at the Frankfurt based Bundesbank.
Gold dealer Jim Sinclair said that Bundesbank’s strategy marked a change in trends in the global gold market, heralding a move away from paper administration of funds. "This sends a message about storing gold near you and taking delivery no matter who is holding it,” Sinclair told British newspaper the Telegraph. “When France did these 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.”