This is a Big Deal

Mon, Jan 14, 2013 - 11:23pm

For now, it's just a ZeroHedge report, based upon the reporting of the German website, Handelsblatt. The report says that an announcement is due on Wednesday. So I guess we'll know for sure in about 24-36 hours.

Here's the original report:

Though Turd is officially 5/8 German by descent, my working knowledge of the language is limited to danke, bier & lederhosen. Perhaps there's a German or otherwise European Turdite out there who would care to translate the text for the community at large?

ZH also did their own translation and analysis. Below is a link but, since it's so potentially important, I'm going to c&p the entire article, too. I hope that the Tylers don't mind too much.

This "event" could seriously rattle not just the gold market in the next few days. Pay close attention and watch for furter headlines.


In what could be a watershed moment for the price, provenance, and future of physical gold, not to mention the "stability" of the entire monetary regime based on rock solid, undisputed "faith and credit" in paper money, German Handelsblatt reports in an exclusive that the long suffering German gold, all official 3,396 tons of it, is about to be moved. Specifically, it is about to be partially moved out of the New York Fed, where the majority, or 45% of it is currently stored, as well as the entirety of the 11% of German gold held with the Banque de France, and repatriated back home to Buba in Frankfurt, where just 31% of it is held as of this moment. And while it is one thing for a "crazy, lunatic" dictator such as Hugo Chavez to pull his gold out of the Bank of England, it is something entirely different, and far less dismissible, when the bank with the second most official gold reserves in the world proceeds to formally pull some of its gold from the bank with the most. In brief: this is a momentous development, one which may signify that the regime of mutual assured and very much telegraphed - because if the central banks don't have faith in one another, why should anyone else? - trust in central banks by other central banks is ending.

Much more importantly, it is being telegraphed as such, with Buba fully aware of just what the consequences of this (first partial, and then full; and certainly full vis-a-vis the nouveau socialist regime of Francois Hollande which will soon hold zero German gold) repatriation will be in a global monetary arena, which is already scraping by on the last traces of faith in a monetary system that is slowly but surely dying but first diluting itself to oblivion. And in simple game theory terms, the first party to defect from the prisoner's dilemma of all the bulk of global gold being held by the Fed, defects best. Then the second. Then the third. Until, in this particular case, the last central bank to pull its gold from the NY Fed and the other 2 primary depositories of developed world gold, London and Paris, just happens to discover their gold was never there to begin with, and instead served as collateral to paper gold subsequently rehypothecated several hundred times, and whose ultimate ownership deed is long gone.

It would be very ironic, if the Bundesbank, which many had assumed had bent over backwards to accommodate Mario Draghi's Goldmanesque demands to allow implicit monetization of peripheral nations' debts has just "returned the favor" by launching the greatest physical gold scramble of all time.

From Handelsblatt:

Die Bundesbank hat ein neues Konzept ausgearbeitet, wo sie künftig ihre Goldreserven lagern will. Nach Informationen des Handelsblatts (Dienstausgabe) sieht dieses Konzept, das am kommenden Mittwoch bekanntgegeben werden soll, vor, den heimischen Standort aufzuwerten, in New York dafür weniger Gold zu lagern und überhaupt kein Gold mehr in Paris zu horten.

Derzeit lagert das Gold der Bundesbank ihren Angaben zufolge in New York, London, Paris und Frankfurt. In der amerikanischen Notenbank Fed lagern 45 Prozent der insgesamt 3.396 Tonnen Gold, in der Bank of England in London 13 Prozent, in der Banque de France in Paris elf Prozent und im Hauptsitz in Frankfurt 31 Prozent. Diese Verteilung soll sich nun ändern.

We present it in the original for fear of losing something in translation, but in broad English terms the above reads as follows:

The German Bundesbank is developing a new approach as to where its gold will be stored. According to exclusive information, to be fully announced on Wednesday, the bank will in the future hold less gold in the New York Fed, and no more hold in Paris (Banque de France). As a result, the distribution of German gold, of which 45% is held in New York, 13% in London, 11% in Paris and 31% in Frankfurt, is about to change.

There is no need to explain why this is huge news (for those who have not followed our series on the concerns and issue plaguing German gold can catch up hereherehere, here, and certainly here) . At least no need for us to explain. Instead we will let the Bundesbank do the explanation. The following section is the answer provided by the Bundesbank itself in late October in response to the question why it does not move the gold back to Germany:

The reasons for storing gold reserves with foreign partner central banks are historical since, at the time, gold at these trading centres was transferred to the Bundesbank. To be more specific: in October 1951 the Bank deutscher Länder, the Bundesbank’s predecessor, purchased its first gold for DM 2.5 million; that was 529 kilograms at the time. By 1956, the gold reserves had risen to DM 6.2 billion, or 1,328 tonnes; upon its foundation in 1957, the Bundesbank took over these reserves. No further gold was added until the 1970s. During that entire period, we had nothing but the best of experiences with our partners in New York, London and Paris. There was never any doubt about the security of Germany’s gold. In future, we wish to continue to keep gold at international gold trading centres so that, when push comes to shove, we can have it available as a reserve asset as soon as possible. Gold stored in your home safe is not immediately available as collateral in case you need foreign currency. Take, for instance, the key role that the US dollar plays as a reserve currency in the global financial system. The gold held with the New York Fed can, in a crisis, be pledged with the Federal Reserve Bank as collateral against US dollar-denominated liquidity. Similar pound sterling liquidity could be obtained by pledging the gold that is held with the Bank of England.

And in case the above was not clear enough, below is the speech Buba's Andreas Dobret delivered to none other than NY Fed's Bill Dudley in early November:

Please let me also comment on the bizarre public discussion we are currently facing in Germany on the safety of our gold deposits outside Germany – a discussion which is driven by irrational fears.

In this context, I wish to warn against voluntarily adding fuel to the general sense of uncertainty among the German public in times like these by conducting a “phantom debate” on the safety of our gold reserves.

The arguments raised are not really convincing. And I am glad that this is common sense for most Germans. Following the statement by the President of the Federal Court of Auditors in Germany, the discussion is now likely to come to an end – and it should do so before it causes harm to the excellent relationship between the Bundesbank and the US Fed.

Throughout these sixty years, we have never encountered the slightest problem, let alone had any doubts concerning the credibility of the Fed [ZH may, and likely will, soon provide a few historical facts which will cast some serious doubts on this claim. Very serious doubts]. And for this, Bill, I would like to thank you personally. I am also grateful for your uncomplicated cooperation in so many matters. The Bundesbank will remain the Fed’s trusted partner in future, and we will continue to take advantage of the Fed’s services by storing some of our currency reserves as gold in New York.

Incidentally, what Zero Hedge did provide after this article, was factual evidence that the Buba's very much "trusted partner" had been skimming it on physical gold deliveries on at least one occasion, in "Exclusive: Bank Of England To The Fed: "No Indication Should, Of Course, Be Given To The Bundesbank..."

So we wonder: what changed in the three months between November and now, that has caused such a dramatic about face at the Bundesbank, and that in light of all of the above, will make is explicitly very unambigous that the act of gold repatriation, assuming of course that Handelsblatt did not mischaracterize what is happening and misreport the facts, means the "excellent relationship" between the Fed and Buba, not to mention Banque de France which will shortly hold precisely zero German gold, has just collapsed.

Also, if the Bundesbank is first, who is next?

Finally, once the scramble to satisfy physical gold deliverable claims manifests itself in the market, we can't help but wonder what will happen to the price of gold: both paper and physical?


About the Author

turd [at] tfmetalsreport [dot] com ()


Jan 14, 2013 - 11:28pm


Let's leave the birther and gun control stuff behind on the previous thread. Time to move on.

old tradesman
Jan 14, 2013 - 11:29pm

top ten

first for me like I said before Its not there! This Is just the start of the end of the fraud!!!

Eric King
Jan 14, 2013 - 11:30pm

Double down

If you were waiting to double down, now is the time.

Jan 14, 2013 - 11:31pm

Silver trade

Closed first position at 31.10

Still holding second position. If momentum is strong we'll see 33 silver. Daily stochastic is in overbougth area but weekly's looking pretty strong to me. If you guys remember I opened position at 30.20. I see Friday's fall as a profit taking. Also I truly believe major banks covered their shorts. At least intermediate time. 

Jan 14, 2013 - 11:32pm

you betchya...

bigger fish to fry now...let's see where this leads. I say keep stacking the silver phyzz cuz if this causes a gold run then we all know silver will come along big time in more valuation than gold. 

Stack, stack, stack!!!

Jan 14, 2013 - 11:32pm


Rather than go for the second!, I thought I'd read it all. If this is true, if, things just changed a lot. 

Jan 14, 2013 - 11:32pm

I Hope

First thing in months that made me want to post a comment -

Let's hope this is an "it begins" moment, but I'm preparing for more Banksta tricks and thug-type action that'll make the Germans change their mind in a few days. I fully expect there will be denials in the AM from some German officials, followed by babbling, then admission, then retractions, then reversal.

On the other hand...maybe my prayers will be answered soon.

Jan 14, 2013 - 11:33pm

top 10

oh yeah


edit: holy crap 1st, this is my lucky day. I think I will buy a lottery ticket today. Better yet, I will drop by my LCS!

Mr. Fix
Jan 14, 2013 - 11:37pm

Darn, I was just getting all the links to a really good reply,

 and I get back and find out there is an entirely new thread, and worse yet, I can't use any of the links here!

 Darn, darn, darn.wink

 That's okay, I can still go back to the last thread, and knock it out of the park!smiley

 Thank you for staying up so late for us Turd,yes

we've got some interesting things to talk about these days.

At least, I can continue along the thread that was, with my question of “what if we just tell Germany to screw off?” 

Jan 14, 2013 - 11:37pm


yowza turdundo

All I want for new years is a US down grad

a US downgrade

Holly crap this is awesome its is going to have London AND New York just crapping in their pants, there is going to be a big BS event on why the gold should stay where it is bla bla bla mostly cause its not there

Jan 14, 2013 - 11:38pm

Oooh, Oooh!

Not bad for the late shift! ;-)

Sie ist das mensch, Turd!

Google Translate says:

Bundesbank wants to bring German gold

14.01.2013, 21:07 clock

After the establishment of large parts of the German Bundesbank's gold reserves for safety were deposited with the Allies. Now, the gold from New York and Paris to be retrieved,

The gold reserves of the Bundesbank are to be again largely supported in Frankfurt. Source: DAPD The gold reserves of the Bundesbank are to be again largely supported in Frankfurt.Source: DAPD

Frankfurt, the Bundesbank has developed a new concept, where she wants to continue storing their gold reserves. According to information of the Handelsblatt (service delivery) sees this approach which will be announced next Wednesday before, to revalue the domestic locations, in New York for less to store gold and even to hoard any more gold in Paris.

Thus, the central bank reacts to a report of the Federal Court to examine the financial statements of the Bundesbank and had advised her to create a current bearings concept and documented.

Currently, the gold of the Bundesbank outsourced their claims to New York, London, Paris and Frankfurt. In the American Federal Reserve store 45 percent of the total 3,396 tonnes of gold in the Bank of England in London, 13 percent, in the Bank of France in Paris eleven percent and 31 percent at its headquarters in Frankfurt. This distribution is about to change.

The gold reserves of the States

Show all
  • USA

    Pot of Gold: 8,133 tons, share of foreign reserves: 75.4 percent

    As of October 2012

  • Germany

    Pot of Gold: 3,396 tons, share of foreign reserves: 72.4 percent

  • International Monetary Fund (IMF)

    Pot of Gold: 2,814 tons

  • Italy

    Pot of Gold: 2,452 tons, share of foreign reserves: 72 percent

  • France

    Pot of Gold: 2,435 tons, share of foreign reserves: 71.6 percent

  • China

    Pot of Gold: 1,054 tonnes, share of foreign reserves: 1.7 percent

  • Switzerland

    Pot of Gold: 1,040 tons, share of foreign reserves: 11.5 percent

  • Russia

    Pot of Gold: 937 tons, share of foreign reserves: 9.6 percent

  • Japan

    Pot of Gold: 765 tonnes, the share of foreign exchange reserves: 3.2 percent

  • Netherlands

    Pot of Gold: 613 tonnes, the share of foreign exchange reserves: 59.8 percent

  • India

    Pot of Gold: 557 tonnes, the share of foreign exchange reserves: 10 percent

  • European Central Bank (ECB)

    Pot of Gold: 502 tonnes, share of foreign reserves: 32.3 percent

Bundesbank board member Carl-Ludwig Thiele had already said last fall that there was no compelling reason for storage in the French capital. Originally, the Federal Republic had during the Cold War and the division of Germany for security its gold to various partner countries, including France distributed. This argument no longer applies. Paris still speaks against another argument: Unlike in London or New York, the Bundesbank would receive in the event of a world crisis, no foreign currency.

Jan 14, 2013 - 11:38pm

150 oz

You can subtract 150 oz of silver from the cartel tonight. Anyone else stepping up?

Frankenstein Government
Jan 14, 2013 - 11:39pm

Please Sign the Gold Audit Petition

I don't know if I missed this here but I found this at harveys or someplace today. It's a petition to audit everything gold that we allegedly still have- but nobody has seen in 40 years.

So I wrote a little about it here.

Basically we need 25k signatures to force a response from our unresponsive government. It's not too difficult to sign up and get done-

Jan 14, 2013 - 11:39pm

When banks stopped trusting their counterparties...

The world financial system damn near ended in 2008.

What happens when Central Banks stop trusting each other?

A new financial world order is coming and I suspect it will include the D-Mark.

Jan 14, 2013 - 11:39pm

frickin' great video!!!

End of The Road: How Money Became Worthless...

Watch it and pass it on!

Jan 14, 2013 - 11:40pm


What does your London connection say???

Is there panic in the gold reserves in London?

old tradesman
Jan 14, 2013 - 11:42pm

@ turd

If the Keynesian economic experiment is within the end game. Wouldn't it be within the ptb to disarm the people in which they robed. So as in the preface, does it not grant us the 1st amendment to discuss the possibilities. Owning physical only comes with the thought and knowing of fraud above us in witch we can not control, So If we can not go forward in a conversation of all aspects of corruption how can we debate the legitimacy of the g/s market?

القراع عصفور
Jan 14, 2013 - 11:43pm


the ZH translation really is fine. all of the gold in France will be repatriated, and they will begin repatriating the gold from NY.

the language is such that they are downplaying the reasons for this, really just saying that the original reasons for storing the gold abroad no longer apply. 

there is no other information that ZH did not cover.

thank you all in advance for staying on topic on this thread. 

old tradesman
Jan 14, 2013 - 11:43pm

Please Sign the Gold Audit Petition

No Im not done stacking!!!!

Jan 14, 2013 - 11:44pm

I have a question for you guys?

What you think about this daily bollinger bands? It's narrowing. Usually it's indication of breakout. But which way? Up or down?

For me it's most likely upside breakout. Weekly slow stochastics stayed under 20 area for 2 weeks. Now it's finally getting up. Also monthly RSI is turning up. But monthly slow stochastics still pointing down as usual. Cause it's slow stochastics. Always little late. 

Jan 14, 2013 - 11:44pm

Any bets on whether gold is attacked tomorrow on the open?

Can't let any gold positive news raise the price now can they?

Jan 14, 2013 - 11:44pm

An Interesting Week in the Wings?

This is big news. The next few days are going to be interesting (although I thought that when QE3 and 4 were announced). Does this mean that the Fed needs to unstack that big Gold brick wall Turdville was discussing a couple of months ago?.

No doubt more banker shenanigans are in the offing, based on this... OR? Is this their 'come to Jesus' moment? We shall see.

Thanks Turd.

Fr. Bill
Jan 14, 2013 - 11:45pm

Any naked emporers standing around?

If so, this oughta shine a nice illuminating light on their tender bits!

Jan 14, 2013 - 11:46pm

Physical gold moves to where

Physical gold moves to where defense to protect is stronger than in weaker hands.

Jan 14, 2013 - 11:49pm


shouldn't the order be first Bier then Lederhosen and dankeschoen?wink

old tradesman
Jan 14, 2013 - 11:52pm

I have a question for you guys?

since crude went to 93 and held, its going up. Im pushing silver up to 36 on my ownangry

Jan 14, 2013 - 11:52pm

Hang On


At this point, I should maybe say SIR Turd. If you know more, or know people who know more; please update this post. Truth? Not truth? Rumor? This seems like a potential game-changer to me.

Mr. Fix
Jan 14, 2013 - 11:53pm

@ old tradesman

The "end of the great Keynesian experiment" will include very many features which do not include our precious metals.

 If the powers that be move to confiscate our gold and our silver, then this is the place to talk about it.

 Heck, they may need to steal all of ours just to give it to Germany!

 However, the First Amendment only applies to the public square.

 This site is the private property of Turd Ferguson.

 Therefore, he has 100% editorial discretion, and can choose the topics at will.

 He can also change his mind any time he so chooses.

 So, if the powers that be come to take anything other than our gold and silver, we will meet at a forum to discuss it,


mums the word. wink

Jan 14, 2013 - 11:57pm
Mr. Fix
Jan 15, 2013 - 12:00am

So, Germany wants its 3500 tons back,

 and silver is up a whopping two cents on the news.

 Fundamentals just don't mean crap anymore.

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