Germany's gold reserves are returned home

In the next three years, the German Central Bank will move from New York to Frankfurt 150 tons of its gold reserves. This will not only allow him to increase the amount of precious metal that is hosted in Germany, but also give the opportunity to inspect the Bundesbank bullion physically. While the usual practice is to receive the annual receipts from the auditors of the United States, Britain and France, which houses most of the German gold is that it is safe and sound.
Germany started to build gold reserves in 1951. In order to provide themselves with a reserve in case you need a foreign currency, it was placed, including the central banks of the leading world powers. Currently, only a third of the 3,396 tons of German gold reserves stored at home. The main part, 45 percent, or 1,536 tons, is located in the U.S., the Federal Reserve Bank of New York. The rest is in the central banks of France and the UK.

German gold audit is conducted annually by specialists of foreign banks, and the relevant documents are sent to the Bundesbank. Previously, the accuracy of this information, no one in doubt. But recently, the Federal Court of Auditors in Germany demanded that the German Central Bank conducted a physical check of gold stored abroad. In this case, such a test previously carried out for the gold reserves located in the UK.

"In the beginning of the last decade, we have transported 930 tons of gold from London to Frankfurt and was subjected to scrutiny," - said the Bundesbank board member Carl Ludwig Thiele. "Part of the gold was melted down into new bars, the appropriate" standards of good delivery "adopted in zolototorgovle. Of 930 tonnes of gold was not a single gram of shortage. We have no doubt that our assets in New York and Paris also made of pure gold, "- said Mr. Thiele.

At the same time, he said, following the recommendations of the Court of Auditors, the Bundesbank will continue to adhere to a more balanced and equitable policies regarding the placement of gold at home and abroad. After all, owning a gold stock has a psychological effect. Therefore, in the next three years from the U.S. to Germany will smuggle 50 tons of gold annually. This will enable the physically inspect the quality of the precious metal. Just as in the case of British gold bullion from the U.S. will be melted down at a more convenient delivery standard.

To the question, why Germany did not recover its entire gold reserve home, Carl Ludwig Thiele says that gold, placed within the country, can not serve as collateral for the immediate purchase of foreign currency. "Take, for example, the key role is played by the U.S. dollar as a global reserve currency. Gold, which is kept at the Federal Reserve Bank of New York, in the event of a crisis can be used as collateral against the dollar denomination. Also sterling liquidity can be backed by mortgage of gold, which is contained in the Bank of England, "- he said.

In this case, while Germany is ready to support a foreign currency in Latin America thinks otherwise. So, at the beginning of this year, Venezuelan authorities have completed return home the gold reserve, which was kept in the American and European banks. On the need to do it earlier said President Hugo Chavez, in the belief that the U.S. economy and Europe will not survive long.