Submitted by Mark O’Byrne – GoldCore
Germany’s Bundesbank released further detail on its gold holdings on Wednesday, saying it transferred 210 tonnes of gold back to the country last year from vaults in Paris and New York.
Frankfurt is now the largest storage location for the country’s gold reserves after New York, it said in a statement, reports Henry Sanderson in the FT.
The Bundesbank’s repatriation of 200 tonnes of gold bullion reaffirms the fact that central banks today still view gold as a vital safe haven reserve currency and monetary asset. It also indicates a lack of trust between central banks and specifically with the Federal Reserve, whose gold reserves have not been audited in over 50 years and many have doubts about the integrity of those reserves.
In these uncertain times, it is prudent to follow the advice of Dr. Marc Faber by becoming your own central bank. It is essential to own gold in allocated, segregated accounts in the safest vaults in the world, in the safest jurisdictions in the world.
Further repatriation of gold by other central banks from the Fed and the Bank of England has the potential to create the long awaited short squeeze and a sharp revaluation in the gold price as central banks are forced to enter the market to acquire the physical bullion that they thought they already owned. A lack of supply and very robust – likely record demand – in the coming financial and monetary crisis will exacerbate this revaluation in gold.
We believe, like the German Bundesbank and people who are buying gold in record amounts, that only gold bullion in your possession or allocated gold stored in secure locations such as Singapore, Hong Kong and Zurich can be viewed as a safe-haven asset.