21-Jan-2014, GMT 17:00 a.m.
Last year Bundesbank started broad repatriation of its gold reserves. They were planning to bring home almost 300 tons of gold held in Federal Reserve vaults in New York. Apparently there isn’t enough gold there, because after 12 months BuBa received only 5 tons. German central bank tries to recover gold also from Paris where it has additional 370 tons and got back as little as 32 tons during last 12 month.
This whole process has been planned for 7 years till 2020 but now doubts arose if this project will be accomplished in that time regarding slow pace of repatriation. Bundesbank states that everything is going well and this process needs to take time because gold must be recast to meet London Good Delivery standards.
Considering whole picture it’s not a surprise that some people think, that there is no physical gold in New York and Paris but only paper obligations. Here come two questions: (1) Where the German gold is? And (2) what impact on price will have demand for 100 tons of physical gold every year just to satisfy BuBa?
Meanwhile gold price stopped for a while over $1200 support but remains heavy. If this level will hold it may be good opportunity to literally “buy gold with Fed”.
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