Thursday, January 17, 2013

As goes Venezuela, so goes Germany: A run on the Fed's gold reserves?

Germany is withdrawing its gold from the Bank of France and the Federal Reserve and stocking it in their own vaults in Frankfurt. This follows Bundesbank board member Thiele's visit to all global storage sites.  The German central bank says its move is designed to "build trust and confidence domestically" in its gold reserves.  The statement also suggests that auditing, or lack of it, is an issue.

Are doubts building about the security of reserves held at the Fed by other central banks?

http://www.bloomberg.com/news/2013-01-16/bundesbank-to-repatriate-674-tons-of-gold-to-germany-by-2020.html

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