The Lost Gold of Germany! - 1
Germany holds the second position in the world when it comes to gold reserves. Germany’s gold reserve stands at 3,390 tones. However 70% of it is not in Germany. The Federal Reserve of the United States holds largest stock of German gold with 1536 tones; Britain has about 450 tones while a bank in France has 374 tones. During the World War II, these gold reserves were shipped to the United States, France and Britain for its safety and security. But now the German political circles have now gone against the opinion of keeping the gold reserves outside the country only for the reason of its physical security.Therefore, efforts are being made to bring back these gold reserves or at least a part of it back to Germany. Process has been initiated in this regards, and accordingly 374 and 300 tons of gold reserves from France and the United States is being planned to be brought back respectively.
The German banks and government have shown the desire to bring back their gold reserves by 2020. France has given a positive sign of returning this gold but the Federal Reserve of the United States has shown reluctance not only in returning the gold reserve but also in showing it to the German representatives giving lame reasons of physical security of the gold and lack of space for the visitors who come to see it.
But still, Germans are not ready to step back. Rather German representatives have been insistent to undertake an inspection of their gold reserve. Thereafter, when German representatives insistently visited New York for inspection they were ill-treated and only 5 or 6 gold bricks were shown to them to convince that those were the part of the reserve that Germany had kept with them. Unsatisfied with this Germany decided to send their representatives to The United States over again.
During the second visit to the Federal Reserve in New York, the German representatives were allowed the entry to the gold vault. But again acting nimbly Federal Reserved opened only one of the nine vault rooms to them. Moreover, the representatives were also warned for they could just have a glance of gold in the vault but it cannot be touched. As a result of it, German representatives returned back home with disappointment.
The treatment meted out by the Federal Reserve and the dubious approach towards Germany has become a topic of discussion at international level. This has given rise to a new possibility altogether and that is does the Federal Reserve really have gold stocks with them.
This doubt further got strengthened after the controversial statement made by William Kaye, a representative from one of the United States’ private investment funds (Hedge Fund). He stated that “Germany will never see its gold reserve as Federal Reserve has given this gold to nation’s private banks like J P Morgan and Goldman Sachs”. He further claimed that this ploy has been used so as to keep its market prices of gold in lower peripheries. He also added by that Germany will never be able to see its gold as it has been safely deposited to accounts which belong to many investors like me.
This controversial statement made by Kaye in July 2013, proved to wash out all the hopes that Germany was nursing to bring back its gold. The statement made by Kaye cannot be ruled out as irresponsible or meaningless as he has worked with likes of Goldman Sachs for many years.
This controversial statement has also put the Bundes Bank, the Central bank of Germany in an awkward situation. It is facing extreme internal pressure to bring back the gold on one side while on the other it is made to digest the ill treatment and hollow promises of the United States Federal Reserve. Temporarily the bank has refused to offer any comments on Kaye’s controversial statement. Further, the bank has stated that it has faith in the explanation offered by the Federal Reserve but the situation remains unchanged. But the ordinary German citizens have refused to believe this and on the contrary veterans from various sectors in Germany have come together and started a movement named ‘Repatriate our gold’ which in simple words means ‘send back our gold’. The leaders of this movement are criticizing German government for the false promises given for bringing back gold reserves from France and the United States. The members of this movement have termed the promise by their government of bringing the gold back by 2020 as a farce that is only intended to buy time.
To be Continued...
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