Germany Taking Gold Back From USA And France, 674 Tons Will Be Moved To Bundesbank

Germany Taking Gold Back From USA And France, 674 Tons Will Be Moved To Bundesbank

Wednesday, January 16, 2013 10:56

(Before It's News)

By 2020, the Bundesbank intends to store half of Germany’s gold reserves in its own vaults in Germany. The other half will remain in storage at its partner central banks in New York and London. With this new storage plan, the Bundesbank is focusing on the two primary functions of the gold reserves: to build trust and confidence domestically, and the ability to exchange gold for foreign currencies at gold trading centres abroad within a short space of time.
Bundesbank in Frankfrut

Credit: Wikipedia
The following table shows the current and the envisaged future allocation of Germany’s gold reserves across the various storage locations:

	31 December 2012	31 December 2020
Frankfurt am Main	31 %	50 %
New York	45 %	37 %
London	13 %	13 %
Paris	11 %	0 %

To this end, the Bundesbank is planning a phased relocation of 300 tonnes of gold from New York to Frankfurt as well as an additional 374 tonnes from Paris to Frankfurt by 2020.

Credit: Bullionstreet
The withdrawal of the reserves from the storage location in Paris reflects the change in the framework conditions since the introduction of the euro. Given that France, like Germany, also has the euro as its national currency, the Bundesbank is no longer dependent on Paris as a financial centre in which to exchange gold for an international reserve currency should the need arise. As capacity has now become available in the Bundesbank’s own vaults in Germany, the gold stocks can now be relocated from Paris to Frankfurt.      http://beforeitsnews.com/economy/2013/01/germany-taking-gold-back-from-usa-and-france-674-tons-will-be-moved-to-bundesbank-2480546.html