Germany Moves Towards Gold Transparency

Germany Moves Towards Gold Transparency

goldcore_bundesbank_gold_bar_24-06-2014aThe Bundesbank recently published the list of all its gold bars on its website in its inaugural report. This is the first time the country has done so. Germany has been in the limelight in recent years after requesting that the New York Fed return its gold. The bank has seemed to turn away from storing 65% of its gold reserves overseas with central banks in London, paris and New York. The Bild-Zeitung, in 2012, ran an article entitled “Bring Our Gold Back Home.” Bundesbank officials began making moves in 2013.

Wednesday’s move for Bundesbank to report where its gold bars are to the public is a move in the direction of re-establishing gold as a concept in the global economic dialogue.  The nearly 3,400-tonne reserve of the metal is accounted for in the 2,300 page list.

“Half of Germany’s gold reserves will be stored in Germany by 2020 at the latest,” Carl-Ludwig Thiele, a member of the Bundesbank’s board said. The list is due to be updated annually.

“There were a lot of conspiracy theories about the gold not being there,” said Guntram Wolff, a German who heads Brussels think tank Bruegel, pointing to ‘disenchantment’ among ordinary Germans who have seen the value of their savings dwindle.

“Trust in the Bundesbank has suffered,” said Peter Boehringer, author of a book entitled ‘Bring our gold home’. “The Bundesbank must prove that the gold is there.” Bundesbank officials see practical reasons for the move.

“The gold reserves show stability. The German people are happy to know that the Bundesbank is watching over this wealth, which belongs to them,” said a former Bundesbank official.

“It could be helpful, for instance, in covering some of the costs were Germany to leave the single currency.”

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.