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Germany's Bundesbank to Pull
Their Gold From Abroad




Germany's Bundesbank is repatriating much the gold reserves of the country - held abroad in Paris and New York. The aim is to combat a future currency crisis. This decision comes following the loss of trust between major central banks.



How Much Gold Does Germany Own and
How Much Gold Will Be Returned?


Germany has 3,396 tonnes of gold (as of early January 2012), which makes it the World's second-largest gold holder country, right after the USA.

In early 2013, the 3,396 tonnes of gold had a worth of roughly 200 billion US dollars.

German gold has been stored abroad since the Cold War era - due to concerns over potential conflict with the Soviet Union and its allies. Back then, before the 1990's, Germany held 93 % of its gold abroad. We have to note that this was West Germany (before the reunification).

The Bundesbank's gold held abroad is split between holdings at the US Federal Reserve in New York (45 %), the Banque de France in Paris (11 %) and at the Bank of England in London (13 %). Only 31 % of Germany's gold is deposited at home - in Frankfurt (as of January 2013).

The Bank of London requests storage fees, while the Fed and the Banque de France store it for free.
Despite this, Germany will keep 13 % of its gold (445 tonnes) in London, at the Bank fo England.

The Bundesbank will repatriate 300 tonnes of gold from New York (1,200 tonnes of the German gold will still remain at the Federal Reserve Bank), 374 tonnes of gold from Paris (all of their holdings in France). This will result in 50 % of all the reserves to be held in the Frankfurt vault, but 37 % will still remain in New York. A total of 674 tonnes of gold will be repatriated to Germany. An estimated 54,000 ingots of 12.5 kilograms make up the gold due for transport to Germany.

The 300 tonnes of gold held at the Fed's vault are worth roughly 27 billion euros or, 36 billion USD (in early 2013 market prices).

The moving of the gold requires extra security and transportation-related activities. It is expected to last for years.


External References:

The Telegraph - Bundesbank to pull gold from New York and Paris in watershed moment Reuters - Germany brings home gold from Cold War havens





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