Germany bringing home 674 tonnes of gold
Following rumors to the effect that have been circulating for months Germany’s central bank will recall some of its gold bullion stored in vaults around the world.
The hoard is worth more than $180 billion.
The Bundesbank on Wednesday said it will ship back home all 374 tonnes it had stored with the Banque de France in Paris, as well as 300 tonnes held in Manhattan by the US Federal Reserve.
At the moment the US Federal Reserve stores 45% of the total 3,396 tonnes and some reports suggest that the Bundesbank want much of it back because the Fed refused German officials a viewing of the bullion a couple of months ago.
The Bank of England has 13% in London and the Bank of France in Paris 11% while the remainder is held at the Bundesbank's headquarters in Frankfurt.
Bill Gross of Pimco summed up the situation perfectly in a tweet yesterday:
@PIMCO Gross: Report claims Germany moving gold from NY/Paris back to Frankfurt. Central banks don’t trust each other?
In November 2011, Venezuela repatriated some 180 tonnes of gold held in vaults in London and elsewhere to store it with the Caracas central bank under orders from President Hugo Chavez.
Gold futures were last quoted at $1,680 an ounce in New York, down $4 on the day.