More on the German Gold Repatriation Scheme

146
Tue, Jan 21, 2014 - 3:30pm

This story gets more fantastic by the day. Just like The Jelly of The Month Club, I suspect that it will be "the gift that keeps on giving the whole year" in 2014.

So now we're told that Germany actually repatriated 37 metric tonnes of gold in 2013, or about 5% of the total 700 ton repatriation plan announced about a year ago. Of this 37 tonnes, 32 were shipped the 500km from Paris to Frankfurt while a whopping 5 metric tonnes made it across the Atlantic from New York.

https://www.welt.de/wirtschaft/article123988843/Die-ganze-Wahrheit-ueber...

We are then told by the various central bankers that the reason for the paltry and delayed shipments are "logistical" in nature, due to the "challenges" of moving so much gold. Really? Seriously??

Here's one for you...Did you know that, because of the density of gold, an entire metric ton can be poured into a cube with dimensions of just 15 inches on each side? Fifteen inches. If you laid them out in a row, end to end, five cubes (five metric tonnes) would stretch out for a total of 75 inches (also known as 6'3"). Hmmm. And the logistics of shipping more than 5 mts in a single year are challenging, huh?

How about the logistics of loading 32 of these cubes onto a truck and driving them the 500km from Paris to Frankfurt. That sounds like one hell of a challenge, too, doesn't it?

Look this is clearly all a farce, designed to patronize the German people while extending the life of The Great Ponzi. Perhaps the Germans are waking up to this as there's now a movement afoot to get ALL of the German gold back and pronto: https://www.gata.org/node/13541. We'll see about that. In the meantime, it should be great theater to watch the bankers preen and posture while they try to assuage their citizens' fears.

To that end, I thought I'd include here this latest video from Dan Ameduri. In this piece, Dan interviews Brien Lundin who, among other things, is the founder of the New Orleans Investment Conference. The NOIC is usually the biggest "natural resource" conference of the year so Brien clearly knows a little bit about the metals. You should watch the entire thing but you may find most interesting some of the stuff that is mentioned regarding the German Gold Scheme.

To be continued...

TF

About the Author

Founder
turd [at] tfmetalsreport [dot] com ()

  146 Comments

  Refresh
agNau
Jan 22, 2014 - 11:59pm

casualties popping up.....

in predictable places.......as the credit cycle unwinds...... will the damages be greater on the periphery.....as was the plan......after all? https://www.zerohedge.com/news/2014-01-22/chinas-first-default-coming-he... holding gold is good.....if you can keep it.

Hagarth
Jan 22, 2014 - 11:37pm

Volker endorses Shadowstats?

At least according to Pippa Malmgren in her interview with Max on RT around 4:30.

Video unavailable
agNau
Jan 22, 2014 - 11:37pm

it's just my imagination....

for some time...we see xxxx tons drawdown from the GLD.......and crumbs from the SLV..... Crumbs and Tons...

SteveW
Jan 22, 2014 - 10:36pm

Shipment logistics

According to my calculations 1,500 tonnes of gold was moved by Operation Fish starting 5 July 1940 using 5 ships. I believe secrecy was a major factor and that the highway from Halifax to Ottawa was not closed to enhance security.

imfd
Jan 22, 2014 - 10:28pm

Travel time

I`ll bet the gold leaving Libya moved quick enough, 150 tons in a weekend or less.

Jan 22, 2014 - 10:17pm

5 tons, 251 workdays in 2013

2 people, carrying 2 LGD bars in a backpack with each trip could have made this shipment in the year since the request was made, using commercial flights to Frankfurt. Perhaps there were other reasons behind the lack of delivery than just 'logistical realities.

I Run Bartertown
Jan 22, 2014 - 10:14pm

Logistics

Good thing no one told Chiang Kai-shek about all the logistical difficulties of moving more than .1 tons of gold per week.

Taiwan would be a fishing village.

ag1969
Jan 22, 2014 - 9:46pm

Bron

Thank you for the post and explanation. So I am guessing that you think a reasonable timeframe to return all of this gold is 7....months? Or seven years? And at 5 tons/yr, won't it take 60 years?

SilverRunNW
Jan 22, 2014 - 9:24pm

@Lamenting_Laverne_and_the_Scoundrel_Suctioncups

"Given that they were not ready to launch the Euro in 1979, and Gold was running amuck presumably on market forces (as in foreign dollar holders not being pleased with a lot of things), I wanna bet a good glass of Kilkenny's that the newly created European gold pool were put to "good" use, and Volker provided the cover. Once the European bankers were ready in 1999, the bull was allowed to run."

The timing of gold's ascent shortly after the creation of the euro always stood out for me. Hope you can find the link of the article you mentioned.

As for the Kilkenny's, well I can honestly say that this beer is one of the finest I've ever had the pleasure of tasting. A few years back, I tried to empty a few pubs in Dublin and Galway of their local Kilkenny stock.

Bron Suchecki
Jan 22, 2014 - 9:04pm

Shipment logistics

While I know that TF statement "How about the logistics of loading 32 of these cubes onto a truck and driving them the 500km from Paris to Frankfurt. That sounds like one hell of a challenge, too, doesn't it?" was not meant seriously, for those actually interested in the practical realities of moving 300 tonnes from the Fed to Germany I blogged on it here, relevant extract below. Anyone actually claiming this move could be done in a few days lack credibility IMO.

Those who think Germany could put 300 tonnes in a big plane or warship and move it in one or a few days have been watching too many Die Hard movies. As I noted yesterday, Venezuela took 4 months to get its 160 tonnes. Do you think Hugo trusted the central bankers? Don't you think he wanted to get his gold ASAP? That would translate to around 8 months in German's case.

Alternatively, consider that an armoured truck can carry only a couple of tonnes or so of gold. From an insurance point of view you couldn't get coverage for more than that anyway. So 300 tonnes at 2 tonnes a day equals 150 working days or 7.5 months. Certainly you could do two trips a day without attracting attention, so 4 months, just like Venezuela. Some may argue that you could use non-secure trucks with heavy security. Even so we are talking 20 tonnes or so maximum weight carry capacity per truck. That is 15 trucks. Hard to secure a convoy like that I think - Google maps tells me that the trip from the Fed to JKF is 20 miles and 30 minutes. OK, so we will shut down 20 miles of roads in busy New York for this convoy with military escort. Yes that will not attract any public attention or present a Die Hard-style security risk. However, even if this was possible, we have an additional problem. Go and watch this National Geographic documentary on the Federal Reserve, the stuff on the gold vault is at the beginning. Note the following: 1. At best they could fit two armoured trucks in their dock. No room for a big rig - are they going to forklift the gold pallets into the truck sitting out in the open on the street? 2. Look at the rabbit warren of corridors and lifts. The lift would fit only 2 tonnes of gold per go. 3. Look at the checking off process for each bar. JohnM in the comments to yesterday's post noted that Germany's gold in the Fed "consist of 82,857 according to the report bullion stored mostly in sealed containers with 50 bars, which are kept in four separate locked safe boxes. Part of it (6183 bar) stored on open shelves, therefore in a separate vault – the so-called gold chamber." Even if we ignore the massive amount of time it would take to just pack the open shelves gold on to pallets and then check and seal the 82,857 bars (at 15 seconds to pick up and check off each bar it would take 43 days at 8 hours a day) and ignore the fact that the Fed probably doesn't have room to store 300 x 1 tonne pallets of gold ready to ship, it would still take say 5 minutes per pallet to get "ready to ship" gold pallets out of the Fed basement and loaded on to trucks. 1500 minutes is 25 hours or 7 days. Just to load. With no breaks. While I'd like to think the above will put an end to the idea that Germany (or anyone else) can move hundreds of tonnes of gold in a few days, I'm not hopeful, because, you know, they would have got away with it in Die Hard if it wasn't for Bruce Willis.

Subscribe or login to read all comments.

Contribute

Donate Shop

Get Your Subscriber Benefits

Private iTunes feed for all TF Metals Report podcasts, and access to Vault member forum discussions!

Key Economic Events Week of 5/25

5/26 8:30 ET Chicago Fed
5/26 10:00 ET Consumer Confidence
5/27 2:00 ET Fed Beige Book
5/28 8:30 ET Q2 GDP 2nd guess
5/28 8:30 ET Durable Goods
5/29 8:30 ET Pers Inc and Cons Spend
5/29 8:30 ET Core Inflation
5/29 9:45 ET Chicago PMI

Key Economic Events Week of 5/18

5/18 2:00 ET Goon Bostic speech
5/19 8:30 ET Housing starts
5/19 10:00 ET CGP and Mnuchin US Senate
5/20 10:00 ET Goon Bullard speech
5/20 2:00 ET April FOMC minutes
5/21 8:30 ET Philly Fed
5/21 9:45 ET Markit flash PMIs for May
5/21 10:00 ET Goon Williams speech
5/21 1:00 ET Goon Chlamydia speech
5/21 2:30 ET Chief Goon Powell speech

Key Economic Events Week of 5/11

5/11 12:00 ET Goon Bostic speech
5/11 12:30 ET Goon Evans speech
5/12 8:30 ET CPI
5/12 9:00 ET Goon Kashnkari speech
5/12 10:00 ET Goon Quarles speech
5/12 10:00 ET Goon Harker speech
5/12 5:00 ET Goon Mester speech
5/13 8:30 ET PPI
5/13 9:00 ET Chief Goon Powell speech
5/14 8:30 ET Initial jobless claims and import prices
5/14 1:00 ET Another Goon Kashnkari speech
5/14 6:00 ET Goon Kaplan speech
5/15 8:30 ET Retail Sales and Empire State index
5/15 9:15 ET Cap Ute and Ind Prod
5/15 10:00 ET Business Inventories

Key Economic Events Week of 5/4

5/4 10:00 ET Factory Orders
5/5 8:30 ET US Trade Deficit
5/5 9:45 ET Markit Service PMI
5/5 10:00 ET ISM Sevrice PMI
5/6 8:15 ET ADP jobs report
5/7 8:30 ET Productivity
5/8 8:30 ET BLSBS
5/8 10:00 ET Wholesale Inventories

Key Economic Events Week of 4/27

4/28 8:30 ET Advance trade in goods
4/28 9:00 ET Case-Shiller home prices
4/29 8:30 ET Q1 GDP first guess
4/29 2:00 ET FOMC Fedlines
4/29 2:30 ET CGP presser
4/30 8:30 ET Pers Inc and Cons Spend
4/30 9:45 ET Chicago PMI
5/1 9:45 ET Markit Manu PMI
5/1 10:00 ET ISM Manu PMI

Key Economic Events Week of 4/20

4/20 8:30 ET Chicago Fed
4/21 10:00 ET Existing home sales
4/23 8:30 ET Weekly jobless claims
4/23 9:45 ET Markit flash PMIs
4/24 8:30 ET Durable Goods

Key Economic Events Week of 4/6

4/8 2:00 ET March FOMC minutes
4/9 8:30 ET Producer Price Index
4/10 8:30 ET Consumer Price Index

Key Economic Events Week of 3/30

3/31 9:45 ET Chicago PMI
4/1 8:15 ET ADP Employment
4/1 9:45 ET Markit manu PMI
4/1 10:00 ET ISM manu PMI
4/2 10:00 ET Factory Orders
4/3 8:30 ET BLSBS
4/3 9:45 ET Market service PMI
4/3 10:00 ET ISM service PMI

Key Economic Events Week of 3/23

3/24 9:45 ET Markit flash PMIs
3/25 8:30 ET Durable Goods
3/26 8:30 ET Weekly jobless claims
3/27 8:30 ET Personal Inc and Spending

Key Economic Events Week of 3/9

(as if these actually matter)
3/11 8:30 ET CPI
3/12 8:30 ET weekly jobless claims
3/12 8:30 ET PPI
3/13 8:30 ET Import Price Index

Recent Comments