According to the Bundesbank press release 16th Jan 2013, the Bundesbank is planning a phased relocation of 300 tonnes of gold from New York to Frankfurt as well as an additional 374 tonnes from Paris to Frankfurt by 2020. James Turk asks why take 7 years for Germany to get its gold back from New York when it should be able to get it back in 7 weeks, unless it was never there.
The Bundesbank made another suspicious statement when it claimed that it would leave its remaining gold reserves in New York untouched because it is a major trading centre, but this clearly in not true. Most of the trading is done through London and Zürich.
Today James Turk told King World News that the German gold is being held hostage by the Fed. Turk also believes that one portion of the Bundesbank’s press release was particularly misleading. Turk reveals the reality of what is taking place with Germany’s gold, and it’s not what the mainstream media and the Bundesbank are telling people.
Here is what Turk had to say in this extraordinary interview: “It’s quite clear that the German gold is being held hostage. They are not getting what they want. They are getting what the Federal Reserve is telling them they can have. The fact that they are doing it over 7 years rather than 7 weeks, is just an indication that gold probably isn’t in the Federal Reserve, and the Federal Reserve doesn’t want to have to go out and buy it overnight to fulfill the German demand. They are trying to stretch it out as long as possible in order to keep gold prices controlled.”
“I mean you can do 5 tons at a time on an airplane shipment. A few hundred shipments and you can have that (1,536 tons of) gold back (in Germany) in a matter of weeks. The only possible conclusion you can make is the gold isn’t there.
You can do what France did back in the 1960s….
“You send over a couple of ships and bring the gold back to your country that way.
When Charles de Gaulle asked for his gold out of the Federal Reserve, it didn’t take 7 years. He got it right away. But back then the gold was in the Federal Reserve because it wasn’t going out in the leasing and lending program that governments have been using in recent years in order to keep the gold price suppressed.
Recently, the Audit Committee of the Bundestag (their parliament), has been requesting that the Bundesbank actually audit the gold because it has never been audited, and presumably is never going to be audited. So the Bundesbank is in a tough spot. The gold is not there, but they have the pressure to audit it and bring it back home.
The fact that they (Fed) are not sending the gold back right away, to me is just a clear sign the German gold is being held hostage. It’s potentially a powder keg here in terms of how the gold market is positioned at the moment because there is so much paper (claims on gold) out there, relative to so little physical, that a lot of paper gold is going to be defaulted upon.
It will be interesting to see whether this leads to other central banks also asking for their physical gold. And more importantly, since there are so many paper (claims on gold) in the various gold ETFs around the world, it will be interesting to see whether the institutional investors are starting to recognize what the central banks are doing, and take some of that GLD and all of the other ETF paper and start saying, ‘Look, I don’t want shares, I actually want ounces. Deliver me the physical metal.’
There is another point here, Eric, that needs to be considered. The Bundesbank made this announcement, but I think they were just trying to put it out in the best possible light. I believe they were trying to stretch for reasons in order to explain why they are still leaving physical gold in New York.
They said, for example, that New York is a trading center for physical gold. That’s not true. It’s not been a trading center for physical gold ever since 1933, when the gold was confiscated by Roosevelt and all of the physical gold trading went to Europe.
That’s why in the physical market you talk about London or Zurich. You never talk about New York because there is no physical gold trading in New York. It’s just a bogus excuse you see in this announcement. It’s just more evidence to me the gold isn’t there. It’s been taken out of the vault and used surreptitiously in order to try to cap the gold price.”
Source: King World News