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States in a Gold Run:
Countries Repatriating Their Gold Reserves




What's the rush? You might say...

National banks and individuals, families, investors are hoarding gold in more and more countries. Some stand out, others are still lagging behind, but what thing is clear: it's a trend and the situation is about to get more intense as time goes by.

Something is about to happen. Perhaps more than we can imagine, perhaps there's more to the global economic crisis than we can find out about in the media.

More and more countries are rushing to repatriate their gold holdings from foreign vaults.

Germany takes their gold back from the Federal Reserve's vault. So does Switzerland, the Netherlands, Ecuador and, Venezuela has already brought most of their "bricks" back to Caracas!

It's not just the small guys, the speculators and the billionaires hoarding gold. Sovereign states are grabbing and taking their gold back home from foreign vaults.
The largest of these is the New York Federal Reserve gold vault.

As a safety measure, a large number of states have deposited their gold at this vault. Many European countries during the Cold War era (fearing a Soviet invasion), but also countries from other continents have entrusted the USA with their gold.

Why are so many countries taking their gold back?


Here are several possible causes, likely scenarios:

 1. They are fearing a major currency crisis: understandable and highly likely and, it's plausible that the euro crisis will deepen further and that's part of the reason why so many European countries that have good relations with the US, have started withdrawing their gold holdings (so, a political reason could be excluded)

 2. Currency wars: many experts agree that this process has already started - check out the Prime Values article about the ongoing currency war (this should not be confused with a currency crisis, but might lead to one or, be caused by one)

 3. The gold isn't there or isn't genuine: there have been previous cases of faked gold bars, including the famous tungsten gold bars case - previously there were "issues" with Germany's gold held at the Bank of England in London (this might have caused fear amongst other countries, which are now rushing to grab their gold) - Germany admittedly wants to test their first repatriated 150 tonnes for quality and weight

 4. Real wars: it's terrible to think of (hopefully nothing like that will happen), but if you knew - wouldn't you withdraw your gold from "less safe" places and move it to "safer areas" - in this case, the USA is among the least safe places for countries to hold their gold

 5. New gold standard: in the past many currencies were either made from gold or backed by gold - the issue is often discussed within the stackers'/collectors' community and between economists as well (could it be that the countries are preparing (in secret) for the emergence of a new gold standard?)


The most likely and closest to happen would be a currency crisis and currency wars (either as a result of- or, as a "preventive measure" of a currency crisis). If either one of them or both (consecutively) occur, then you have to prepare yourself to save your wealth.
If currency crises kick in, it will be too late - money starts devaluing and you will lose a large part of your wealth. If you have a family, then the situation is even worse.

Partly this is the reason why Prime Values was created - to offer advice on saving wealth.
Check the article about how precious metals can save your wealth during crisis to learn more about why these rare metals constitute a great hedge against currency devaluation.
Of course: Prime Values is not encouraging you to put all your wealth in precious metals, just make sure you own a significant amount.





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