

Germany Repatriating Gold From NY, Paris 'In Case Of A Currency Crisis' - bitcartel
http://www.forbes.com/sites/afontevecchia/2013/01/16/germany-repatriating-gold-from-ny-paris-in-case-of-a-currency-crisis/

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mynameishere
No good explanation. They only had so much gold in NYC because of the small
but real threat of the Soviets invading. The only reason to bring it back is
the tiny threat of it being stolen by the US or France.

 _and to have the ability to sell gold quickly If needed._

Eh, they can sell it while it's still in the vault. That's how it's always
done.

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bitcartel
Another reason is to make sure they get their gold back first, just in case
there's a been a financial ponzi scheme in gold trading where paper
instruments are not backed up by real assets.

[http://www.bloomberg.com/news/2011-12-09/hsbc-sues-mf-
global...](http://www.bloomberg.com/news/2011-12-09/hsbc-sues-mf-global-
brokerage-over-stored-gold-silver-bars-1-.html)

"Five gold bars and 15 silver bars underlie eight Comex contracts between the
brokerage and its client Jason Fane of Ithaca, New York, the unit of London-
based HSBC said in a court filing yesterday. Both parties have asserted claims
to the bars, creating difficulties for HSBC, which is storing them, the bank
said. HSBC asked a judge to decide who the rightful owner is."

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flexie
The article asserts that this could be seen as a lack of confidence in the
Euro but fails to explain why this should not be seen as a lack of confidence
in the dollar or in America. After all, if the Euro broke down, the Germans
might want to secure their holdings in France, and not just their holdings in
the US.

~~~
gotofritz
If the Euro collapses, they want to be able to get other currencies with their
gold. The gold in France is pretty useless for thet.

~~~
flexie
Let me make myself more clear. The article says that the Germans are planning
on repatriating all the gold from France. But why is that a sign of distrust
in the Euro, whereas bringing back gold from New York is not distrust in the
dollar? Gold is gold, right?

For me the whole thing about being able to get foreign currency quickly sounds
less credible. Even if the Euro collapsed and the gold were in Germany they
could get American dollars quickly, should the situation arise.

Isn't is more a distrust in all the institutions and all the systems as such,
in case one or more of the major currencies collapses?

~~~
SyneRyder
Forbes skipped part of the original quote from the Deustche Bundesbank press
release. The full quote is:

"With this new storage plan, the Bundesbank is focusing on the two primary
functions of the gold reserves: to build trust and confidence domestically,
and the ability to exchange gold for foreign currencies at gold trading
centres abroad within a short space of time."

I read that as Germany strengthening domestic trust & confidence (via gold
repatriation), at the expense of exchanging gold for foreign currencies:
specifically, the US Dollar, since that's the only currency where gold
reserves are being reduced (ie the amount of gold in Euro & Pound countries
remains unchanged).

