German Gold Hijinx

Wed, Jan 16, 2013 - 11:54am

I guess it all depends on how you look at it. Either this is all on the up-and-up or it isn't. Either this is a purely political show or it isn't. Either the gold is really there to be repatriated or it isn't. It's up to you to decide.

Just three months ago, The Bundesbank labeled as "lunacy" the idea that German gold needed to be brought home. They announce today that they're doing it anyway, but in sizes nowhere near what had been speculated. Is this just a political trick to mollify the German hoi polloi? Probably. It certainly doesn't upset the status quo or shake the global banking system in the manner we'd all hoped.

However, you could also choose to look at it this way:

  • In preparation for The Great Reset, the Germans do desire to repatriate as much gold as possible but they also don't wish to bring about The Reset any quicker than necessary.
  • So, they bring home "their French gold" but only do so at the rate of 50 tonnnes/year. Why? If it's just sitting in a vault and collecting dust, why not ship it all home over the next few weeks? What's the big deal?
  • And why leave "their English gold" untouched? Is it because all gold stored at the BoE can be leased, hypothecated and rehypothecated many times over, thereby making reclaiming it impossible?
  • And why bring back just 300 tonnes of "their American gold", again over the next 8 years? It shouldn't be that big of a deal to pull up a few pallets of "barbarous relic" from below the streets of lower Manhattan, drive it over to JFK and load it onto an airplane bound for Frankfurt. Should it?

Hmmmm. Maybe, just maybe, their French gold is long gone and the Frenchy-French need some time to come up with new supply to pay them back? ( Maybe the English gold has all been shipped to China and other points East, where it has been resmelted into kilo bars with official Chinese insignia? ( And maybe, just maybe, the American gold is nothing but paper certificates and IOUs, no more valuable than claims on the GLD? (

Ahhhhhh....what do I know? I'm just a Turd. A dope with a MacBook. I'm sure it's all just fine. Move along. Nothing to see here. All is well. Go back to sleep.

Anyway, it has been a few days so we need to update the charts. Let's start with gold. Take a look at these two, daily charts. You can clearly see the price double bottom. This also coincides with an open interest bottom in late December. In the big picture, me likes what me sees.

Now check out this 8-hour chart. Besides all of the horizontal and diagonal resistance lines I've drawn, gold will likley run into some tough sledding near the 50 and 100-day MAs. The fifty for the Feb13 contract is currently near $1697 and the 100 is near $1718. Taking it all into consideration, the "all clear" for a rally can't truly be sounded until gold gets up and through about $1710-1715, maybe in a week or two. Until then, I just plan to keep stacking physical. I'm not going to buy any more options just yet.

As you might expect, silver has a somewhat similar picture. It came down in late December and then double-bottomed just below $30 about two weeks ago. Since then, it has seen a steady progression higher. Now it just needs to follow through. It is finding resistance near the highs of 1/2/13 (31.50) and it needs to break that level to draw in more buyers. Once through there, expect slowdowns near the 50-day, currently at $32.01, and the 100-day near $32.60.

That's all for today. I need to go take a little boat ride with all my guns and ammunition. It'll probably take most of the day. More tomorrow...


About the Author

turd [at] tfmetalsreport [dot] com ()


Jan 16, 2013 - 6:13pm

It's On!!!

Santa was right, the German gold repatriation story is a parry in the currency war - It's on alright thanks to those bright bulbs that run the ESF.

No doubt Europe has been attempting for these past few years to stabilize and maintain the Euro as a reserve currency which requires gold to trade at a free floating mkt. price (see yesterdays OMFIF report to figure that out) and the [insert defamatory explative here] US Treasury Sec. and the Prez. decided to slam gold which was seen as an effort by the US to collapse the Euro and destroy all hope of Europe becoming independent from US hedgemony since the end of WWII although Europe does have the economy and size to do so, especially with a stable Euro currency.

So after two years of taking slaps across the face (like all of us) in the form of ESF slams on gold, Germany put a shot across the USG bow and announced gold repatriation. Under cover of "since we're all in the Euro[zone]", Paris lost out and Germany is taking all their gold out of Paris. And just in case the Euro does collapse, at least Germany has all their European gold on hand. But as for London and New York, the announcement was slightly more than a warning shot to cease and desist in rigging the gold price and threatening collapse of the Euro. That seemingly excessive repatriation time frame can always be shortened at a moments notice if the ESF and the Prez don't get their s*** together soon. And don't think that China is not in Europe's corner, they are, and when the China market has matured enough they will have no qualms about crashing the dollar if forced to by the too smart for their own good folks in the District of Criminals.

It's On!!! it's just that Europe has so far only responded with a slap across the cheek for the body blows that have been given to gold and the Euro by the ESF and the Prez.

Anymore of the underhanded B.S. from Washington and New York and we can all kiss our account balances good bye. Unless they are gold that is.

Thanks you thieving $#@@$^^&%*%^$%&@@ may you and yours rot in the hell of your own making.

Jan 16, 2013 - 6:15pm

@ Bucktooth

I stand corrected.

I have now corrected the original post, thank you.

Somebody else used the same wrong expression the other day (Triffin instead of Giffen) and I followed suit. That's the problem with the interwebs, we are all learning each other wrong (notwithstanding posts such as your own).

Jan 16, 2013 - 6:31pm


"Destructive, cowardly, murderous, genocidal, infestatious, festering, & weeny-pulling."

One never display one's best points at the 'initial discussion' phase.

Should Ferd not have backed down (thrown in the towel, chickened-out, been such a poofter, etc), those would most certainly have been presented at the second, for further intelligent enquiry.

Jan 16, 2013 - 6:32pm

Silver Manipulation Case Rejected

Not that I expect you folks to be informed, but I thought someone would be talking about this:

"A US federal court has dismissed a class-action lawsuit that accuses JPMorgan Chase & Company (NYSE:JPM), its subsidiaries and 20 unnamed “John Doe” defendants of silver manipulation. Judge Robert P. Patterson Jr. found that the complaint contains many “conclusory allegations,” but fails to provide the specific factual allegations needed to substantiate a claim."

More here:

Jan 16, 2013 - 6:45pm

Another crisis of 'Hostages' this time......

about to overtake all news feeds near you. Bet on it. Staged in the battleground for resources. There are a few smart people out there: ;)

Jan 16, 2013 - 6:47pm

Nice try, douchebag

It seems that YOU are the one who is late to the party:

p.s. I only approved your comment so that we could all make fun of you.

Jan 16, 2013 - 6:49pm

And this has already been reposted

but everyone needs to see this:

The biggest news of the day comes from the official Buba announcement that, in its official capacity as a prudent central bank, it - as first of many - is looking to repatriate some 300 tons of gold from the New York Fed. That, however, is not today's news - that was Monday's news.

What is news is that courtesy of the supplied calendar of events in the Buba statement, it will take the Fed some seven years to procure Germany's 300 tons of gold. This is the same Fed that, in its own words, holds some "216 million troy ounces of gold" or some 6720 tons, in its vault 80 feet below ground level.

Putting the above in perspective, the amount of gold that Germany will have to wait 7 years for is shown in red. The amount of gold the Fed supposedly holds, is shown in yellow with a shade of tungsten. Why it will take the Fed 7 years to part with an amount of gold that is less than 5% of its total holdings is anyone's guess...

unless of course, the bulk of the gold in the column on the right has been rehypothecated numerous times to serve as collateral for countless counterparties, and it is no longer clear just who own what to anyone.

* * *

We can only wonder how many centuries it will take the New York Fed to deliver all the gold held by third parties in its vault, once the demand notices start rushing in...

Mr. Fix
Jan 16, 2013 - 6:50pm

From Harvey Organ:

"I believe that Germany knows full well that the gold is gone and that they are giving time to the USA to mine gold and send it off to Germany.

The big question to Germany is this: If they retrieve only a tiny portion each year, what will stop major countries like the Netherlands, asking for it's metal right now and thus jumping queue ahead of Germany in repatriating gold reserves?"


Today, Turd's entire post is featured prominently on Harvey Organ's blog.


Although I agree with Harvey's analysis that Germany knows there is no gold, I believe that they are maintaining a false assumption that if given enough time the Fed will magically pull more out of the ground and send it to them.

Not going to happen.

That would be like asking a bank robber who has already spent the loot to go get a job, and earn the money, and give it back to the bank. It's just not going to happen.

The United States government has stolen not only from all of its citizens, but from virtually every nation on the planet.

This will continue until somebody with more power than they have put a stop to it.

Unfortunately, no such entity exists on planet Earth.

This will only end when the United States government implodes from its own arrogance and overreaching.

That my friends, will be one hell of a mess.

Jan 16, 2013 - 6:52pm

Sinclairs reference to "parting shot by Treasury Secretary"

Sinclair: 'I am told that the parting shot to break gold’s back by the Exchange Stabilization Fund was considered a direct attack on the Euro strategy for what the end game recovery will look like.'

Has anybody figured out what he is referring to yet?

Mr. Fix
Jan 16, 2013 - 6:53pm
Jan 16, 2013 - 6:54pm

Mr F

I believe you have made a great point. Perhaps it will be the politico-banksters rather than the gangster-banksters who will turn and begin devouring each other first.

I had always thought that the morgue and squid would be the first to feast upon their brethren, and certainly the rush to "toady" by barclays in the LIBOR disclosure reinforced my view.

With the German BUBA news though, and your comments, I admit that perhaps Bollocks' family does indeed have more bollocks than their central bank buddies.

As you imply, this has the potential to accelerate FAST, into a panic.

I am watching with great anticipation.

Ferd Torgerson Bollocks
Jan 16, 2013 - 6:55pm


Enough already!! No need to rub a guy's face in it when he's trying to be conciliatory.

As a peace-offering and a token of friendship and admiration, I'm gifting to you another heirloom of the Torgerson Family Trust. This biscuit barrel, also used I understand by some as an ice bucket, has been in our family for almost 100 years.

(Pay no attention to the "ticking" sounds emanating therefrom).

Best wishes


Edit: And tell Blythe that that last "pull" really smarted.

Jan 16, 2013 - 6:56pm

Bernie Madoff is a Kindergartner compaared with . . .

the U.S. treasury and the Federal Reserve. The only reserve held is a googolplex of computer digits.

Jan 16, 2013 - 6:56pm

And here's something else

And here's something else that nobody is talking about:

On 1/2/13, the total mts allegedly parked in GLD vaults was 1,349.92

As of today, that number has fallen to 1,334.42!

That's 15.5 metric tonnes withdrawn since the first of the year! Gee, I wonder where it went...

Jan 16, 2013 - 7:00pm

Well this is fun...

...but not sure how much any of it means short term. What I do know is that if Blythe doesn't pull her finger out of her ass in the next 24 hours, silver is asking serious questions of the overhead resistance. $34 here we come.

Or $30

Jan 16, 2013 - 7:00pm


If you were in charge of a world wide syndicate that required everyone in the world to use your chosen medium of exchange and had elected officials in your pocket and was capable of paying off judges and owned a military to depose of detractors and the remaining only thing that was required for you to continue your monopoly was that you needed to control and defeat your competition, why would you give it up?

Jan 16, 2013 - 7:04pm
ancientmoney Mr. Fix
Jan 16, 2013 - 7:04pm

@Mr. Fix

"The big question to Germany is this: If they retrieve only a tiny portion each year, what will stop major countries like the Netherlands, asking for it's metal right now and thus jumping queue ahead of Germany in repatriating gold reserves?"


I recall a similar discussion on another PM site a few years ago. The analogy was the children's game, "musical chairs." Up til recently, nobody thought the music would stop, but it seems it has--or at least has slowed, and the players are now scouting out their chairs, and making moves toward them. Somebody will lose out bigtime--likely several players. Actually, they already have, and don't know it yet--or, more likely they know it but are in denial.

Jan 16, 2013 - 7:05pm

And this is fun

From GATA, via Harvey:

Statement by Peter Boehringer
on behalf of
Repatriate Our Gold
and the German Precious Metals Association
Wednesday, January 16, 2013
We welcome the Bundesbank's announcement to repatriate significant portions of Germany's gold held abroad.
All reasons cited in the past for this storage had either been false or at least outdated since 1990 (with the end of the Cold War and the theoretical military threat to the Bundesbank's domestic gold vaults).
We are also satisfied that propaganda arguments (e.g. "chauvinistic/nationalistic demands for repatriation," "repatriation too expensive," "absurd debate questioning the integrity of US/UK central banks," etc.) have not been repeated at the Bundesbank's press conference today. Actually, by announcing some repatriation, the Bundesbank has implicitly acknowledged our point of view of gold as real money and integral part of a nation's monetary reserves.
But we do not approve of the speed and volume of the planned repatriation.
The Bundesbank has just announced that it will repatriate only 675 tonnes by 2020 by then bringing the total of German gold held in Germany to approximately 50 percent (1,700 tonnes) of total German gold reserves. The Banque de France will allegedly be given up as a Bundesbank storage facility (374 tonnes) and up to 300 of 1,535 tonnes will be repatriated from the New York Fed.
In our view, there is a lot of room for speeding up and increasing the volumes for this repatriation.
In addition, the Repatriate our Gold campaign insists on proper and independent physical and full audits of the Bundesbank's own vaults in Germany. This includes the publishing of bar number lists, which has been overdue for years. These gold bar number lists are important to prove or disprove multiple ownership of specific bars which could have come about through gold loans. This is one more reason to audit and repatriate all gold bars -- as an incomplete audit and incomplete lists would not fulfill this important purpose.
To quote from the statement of purpose of the Repatriate Our Gold campaign:
"Gold has been natural money for thousands of years. It has been used throughout history either as physical coinage or as the solid cornerstone for stable paper currencies. Up until 1913 most Western societies prospered and grew steadily and naturally under a monetary standard with at least partial gold backing. The gradual abandonment of the gold backing throughout the 20th century and the ultimate delinkage of all currencies from gold in 1971 is the fundamental cause of the ongoing inflation (the U.S. dollar has lost 98 percent of its purchasing power since 1913) as well as the main reason for the global financial crises since 2007. We believe it is essential to re-introduce a partial gold backing for the world's monetary system. And to back future national currencies, the gold needs to be physically present in the respective country. Gold needs to be re-monetized -- at least on a voluntary basis as a means of payment the people are free to choose at any time.
"We therefore campaign for:
"-- Independent, full, neutral, and physical audits of the gold hoards of the world's central banks.
"-- The repatriation of all central bank gold; that is, the physical transport into the respective ownership countries."
Jan 16, 2013 - 7:10pm

LOL Turd - RE: Nice try, douchebag

LOL Turd. I was looking to post that article in reply to the DB myself for you, but you beat me to it!

I remember that post, because I was....... FIRST!

Jan 16, 2013 - 7:18pm

Deer Ferd.

No, not a typo...

Nuff said?

Silly Billy.

@ Everyone

Recent Ferd sighting!

It's gone terribly quiet, hasn't it FERD ?

Mr. Fix
Jan 16, 2013 - 7:31pm

@ ancientmoney

In answer to your statement below,

I do believe that Germany is stuck in a dilemma of trying to decide whether to make a stink about its gold,

and destroy the entire Western civilization,


they know that gold is long gone, so their only real choice is to let the Ponzi scheme continue a little while longer.

(Tough choice.)

Shouldn't be much longer.

They already know they are never going to see any of their gold.

And there's no sense for anyone else to get in line either, it is all gone.

And I maintain my belief that there will be no significant increase in the price of gold or silver,

until the entire system collapses.

Maybe Germany has only just figured that out in the last two days, but they certainly know it now.

Jan 16, 2013 - 7:33pm

Will Hong Kong bash through or back off?

They've been quite aggressive the last couple of nights. You'd think they'd do so again tonight and trip those stops @ 31.60. Be interesting to wake up tomorrow morning. We know Blythe has a monkey colony out there. If so now would be the time to kick them into action.

Mr. Fix
Jan 16, 2013 - 7:42pm

What does the German central bank know that we don't?

Ben Bernanke and the rest of the US Federal Reserve bet the farm that they could engage in countless monetary interventions, keep interest rates at zero, and print over $2 trillion in new money without damaging the US’s credibility.

They were wrong. Indeed, Germany just fired a major warning shot to the US Federal Reserve.

On Monday, Germany announced that it will be moving a significant portion of its Gold reserves out of storage with the New York Fed and moving them back to Germany.

A few background details.

  • Germany has the second largest Gold reserves in the world behind the US.
  • Since the early ‘80s, Germany has stored the largest portion of its Gold reserves with the New York Fed (45% vs. 13% in London, 11% in Paris and the remaining 31% in Frankfurt).
  • In the fall of last year, German officials began raising the issue of auditing its reserves at the NY Fed.

Why would Germany suddenly decide that it wants to change a policy it has had in place for over 30 years?

More importantly, how did it go from wanting to audit its reserves to actually removing them from the NY Fed’s care?

In simple terms, Germany has just announced that it doesn’t trust the US Fed.

The rest of the story:

Jan 16, 2013 - 7:45pm

Off topic, but I believe relevant and important.

Congresswoman introduces ‘Aaron's Law’ to honor Swartz

In the wake of computer genius Aaron Swartz’ untimely death, some US lawmakers are advocating that the government make changes to the federal statutes that the hacker is alleged to have violated before taking his own life.

Swartz, 26, died last week of an apparent suicide. Had he lived, Swartz was expected to stand trial later this year to face a multitude of counts related to a laundry-list of so-called criminal activity the United States government alleged he engaged in. If convicted, Swartz stood to spend 35 years in prison.

Citing broad prosecutorial outreach, Aaron’s father said during his son’s funeral on Tuesday, “Aaron did not commit suicide but was killed by the government.”

The death of Aaron Swartz is an unfortunate catalyst to prompt discussion, but has proved to be a powerful one nonetheless. Only four days after his passing, Rep. Zoe Lofgren (D-California) announced on Reddit — a website that Swartz himself is credited with co-founding — that she’s proposing a series of changes to the US Computer Fraud and Abuse Act, or CFAA [PDF].

“As we mourn Aaron Swartz’s tragic death, many of us are deeply troubled as we learn more about the government’s actions against him,” she wrote Tuesday night. “There’s no way to reverse the tragedy of Aaron’s death, but we can work to prevent a repeat of the abuses of power he experienced.”

According to Rep. Lofgren, the US government could make great strides in lessening the odds of another hacker suicide should they decide to make changes to the CFAA, a legislation first passed in 1986 that is largely considered antiquated by today’s technology standards.

“The government was able to bring such disproportionate charges against Aaron because of the broad scope of the Computer Fraud and Abuse Act (CFAA) and the wire fraud statute. It looks like the government used the vague wording of those laws to claim that violating an online service’s user agreement or terms of service is a violation of the CFAA and the wire fraud statute,” she wrote.

“Using the law in this way could criminalize many everyday activities and allow for outlandishly severe penalties,” Lofgren said.

In a Reddit post that has since spawned over 100 comments from users of the site, Lofgren links to her proposal — an amendment to the CFAA that would “exclude certain violations of agreements or contractual obligations, relating to Internet service, from the purview of certain criminal prohibitions.”

The changes, though minor, could make a world of difference, says the lawmaker. But while it is indeed a step towards the right direction in terms of avoiding another tragedy, some say Lofgren’s attempt is not enough to end the government’s witch-hunt against alleged criminals.

"It’s a great first step," Marcia Hoffman of the Electronic Frontier Foundation tells Forbes, "But if it’s trying to make sure what happened to Aaron can’t happen to someone else, it needs to do more."

In the article, penned by Forbes’ Andy Greenberg, both Hoffman and technology attorney Tor Ekeland suggest that the overly vague verbiage in the CFAA allows for the government to go after all too many targets.

“The [CFAA] is a prosecutor’s wet dream and a defendant’s nightmare,” Ekeland tells Greenberg.

On Reddit, Lofgren says, “this bill to amend CFAA and wire fraud statutes, which I would like to call ‘Aaron’s Law,’ should be enacted separately and swiftly. It could be an important tribute to him.” It had since gained the support of Lawrence Lessig, a professor at Harvard Law School who spoke highly of Swartz during Tuesday morning’s funeral service.

"Let's get this done for Aaron – now," Lessig wrote on Reddit.

Mr. Fix
Jan 16, 2013 - 7:52pm

Just a little bit more on topic.

What Germany knows that we do not know is that it doesn't take 7-8 years to move a couple of thousand tones of gold. What Germany knows is that the gold is not there, and it will take 7-8 years to accumulate a couple of thousand tones of gold -- except if you are Chinese, in which case you can move a couple of hundred tones a day into deep Asian storage meant to come off market for the next 50 years.

The gold at the US Fed is gone.

It's been gone a long time.

The gold in London is gone.

The gold in France is about to be gone, as soon as the commie Hollande figures out how to get his hands on it. It's been gone a long time. That's what the Germans know, and actually, as long as they can make nice-nice with DC, they really don't even care that it's gone.

Jan 16, 2013 - 7:53pm

looking for a quote used here......

It goes something like...... "We will know when we've succeeded when everything the American public believes is wrong."

What is the quote? Who said it? I think it was from the early 1980's.


question annei
Jan 16, 2013 - 7:54pm

@ annei re Java Problem

Thanks for reply; wasn't sure if it was a personal problem or what (I've enough of them)

Jan 16, 2013 - 7:56pm

p.s. I only approved your comment so that we could all make fun

That put the smile back on my face after subjecting myself to that Piers Morgan video.

Who was it this morning.....? Oh it was me that said don't "misunderestimate" the German People. Boehringer is a German People and that letter is great. I guess mollifying the German people with the snail's pace repatriation is a big central banker fail.

The only plausible explanation for it taking 7 freaking years to get their gold back was again offered by..... me......Shit glitter! I am now convinced that the German Gold has gone into shit glitter and it is going to take 7 years for the Germans to get it all back. There will be a lot of shit to sort through for the Bundesbank from this point forward.

Edit: Might I add, rehypothecated shit glitter!

Urban Roman
Jan 16, 2013 - 7:56pm

+1 off-topic, but not, really

@bollocks, +1

It's about freedom. It is not about the red-team, blue-team stuff which takes up too much bandwidth around here, anyway.

Are you allowed to own a firearm?

Are you allowed to use a computer?

Are you allowed to carry cash, and spend it in any way you choose?

Are you allowed to save for retirement?

Finally, are you allowed to live? In some precincts, they are tearing up peoples' gardens ...


Donate Shop

Get Your Subscriber Benefits

Exclusive discount for silver purchases, and a private iTunes feed for TF Metals Report podcasts!

Key Economic Events Week of 5/20

5/20 7:00 pm ET CGP speech
5/21 10:00 ET Existing Home Sales
5/22 2:00 ET FOMC minutes
5/23 9:45 ET Markit PMIs
5/24 8:30 ET Durable Goods

Key Economic Events Week of 5/13

TWELVE Goon speeches through the week
5/14 8:30 ET Import Price Index
5/15 8:30 ET Retail Sales and Empire State Manu. Idx.
5/15 9:15 ET Cap. Ute. and Ind. Prod.
5/15 10:00 ET Business Inventories
5/16 10:00 ET Housing Starts and Philly Fed
5/17 10:00 ET Consumer Sentiment

Key Economic Events Week of 5/6

5/9 8:30 ET US Trade Deficit
5/9 8:30 ET Producer Price Index (PPI)
5/9 10:00 ET Wholesale Inventories
5/10 8:30 ET Consumer Price Index (CPI)

Recent Comments

by Angry Chef, 44 sec ago
by argentus maximus, 3 hours 19 min ago
by argentus maximus, 8 hours 38 min ago
by Craigo, 11 hours 23 min ago