Gold rush in Europe as concern over money printing rises

[webfact]

OVERDRIVE
Gold rush in Europe as concern over money printing rises
Thanong Khanthong

BANGKOK: -- Many European countries are now moving to repatriate their gold holdings from storage abroad. They are also looking to increase the proportion of gold in their international reserves to assure currency and financial stability.

This move is significant, as it reflects growing concern that the unprecedented money printing of major central banks could debase fiat currencies, trigger runaway inflation and cause another financial crisis - perhaps even bigger than that of 2008. In spite of surging demand for the yellow metal, the gold price continues to struggle at under $1,200 per ounce.

By Monday we will know the result of a referendum in Switzerland dubbed Save our Swiss Gold, also aimed at shoring up national sovereignty. More than 5 million Swiss will vote on whether their national bank should be required to repatriate 1,040 tonnes of its gold - a fifth of which is held by the Bank of England and a third by Canada. A yes vote would bar the Swiss National Bank (SNB) from selling its reserves of the precious metal and require it to increase its gold holdings to 20 per cent of its total assets. It would also mean the Swiss National Bank having to acquire 1,500 tonnes of gold over the next five years. This would have a significant impact on supply-and-demand and thus on the price of gold. However, SNB chairman Thomas Jordan has warned of "dangerous" consequences if the vote goes through, arguing that if the bank were forced to boost its gold reserves, its costs would increase exponentially and its ability to move within the currency market would be severely hindered, putting its credibility at stake.

"The initiative is dangerous because it would weaken the SNB," he told an audience near Zurich last week. "The connection between a minimum share and a ban on selling which it embraces would very severely impair our monetary policy room for manoeuvre."

The Save Our Swiss Gold campaign appears to be waning, with polls showing the yes vote at 38 per cent last week against 42 per cent last month. Like the Scottish independence referendum, the Swiss gold initiative might turn into another devastating defeat.

Meanwhile the Netherlands has moved more effectively to repatriate its gold. To the surprise of many, it recently received 122 tonnes back from the Federal Reserve Bank of New York. In contrast, Germany's attempt to get its gold back from the US has not been successful. It would like to repatriate 680 tonnes from the Federal Reserve of New York, but so far has clawed back just 5 tonnes. The Fed has told the Germans they will have to wait until 2020 before it delivers all the gold back to Germany.

The Netherlands has 612 tonnes of gold reserves, making it the 10th largest hoarder in the world. This signals that the country has been rather conservative in managing its monetary policy, as its 612 tonnes of gold amount to more than 54 per cent of the Dutch central bank's total assets. But the problem is that it only keeps 11 per cent of that gold in the country. The rest has been stored abroad - 51 per cent in the US, 21 per cent in Canada and 18 per cent in England. The Netherlands has now come to realise that it might be unwise to keep more than half of its gold in a single country. The goal now is to keep 31 per cent of its gold reserves in Amsterdam, 31 per cent in New York, and maintain the 20 per cent it already has in Ottawa and the 18 per cent it has in London.

The latest country to jump on the bandwagon of gold repatriation is France. After the right-wing Front National party earned a shock victory in May's European Parliamentary elections, its leader Marine Le Pen now wants the return of French gold reserves. Le Pen has written a letter to that effect to the Banque de France. The letter echoes the demands made by the Save Our Swiss Gold campaign. It calls for:

_ Urgent repatriation to French soil of all of our gold reserves located abroad.

_ An immediate discontinuation of any gold sales programme.

_ Conversely, a gradual reallocation of a significant portion of foreign exchange reserves in the balance sheet of the Bank of France by buying gold at each significant decrease in price (recommendation 20 per cent).

_ A suspension of any financial commitment or loan contract that wagers our gold reserves.

It is clear that the move in Europe is tilting towards a gold standard of some sort, with nations beginning to realise that the days of the fiat currency regime could be numbered.

Source: http://www.nationmultimedia.com/opinion/Gold-rush-in-Europe-as-concern-over-money-printing-30248678.html


-- The Nation 2014-11-28

[siampolee]

One is led to wonder whether we are about to enter another cycle of depression with all this clamour to back up paper with gold.

The profligate spending policies of many states on conflict it seems is coming home to roost as are the vultures of the international robbery banking industry too

One can guarantee that those who have created this situation and have benefited from it certainly will not lose out, on the contrary they'll yet again feed upon the carcass of the man and women in the street.

Fat cats get fatter every day.

[robblok]

Sounds like they dont trust the USA. They are right else Germany would have its gold back already.

[F430murci]

Who writes this trash? Oh, never mind. Not a lot if brain power behind any if this.

[impulse]

It is clear that the move in Europe is tilting towards a gold standard of some sort, with nations beginning to realise that the days of the fiat currency regime could be numbered.

Do some math. Take all the gold in all the vaults. Multiply it by today's price. Compare that number with the total world GDP.

Unless gold goes to (something like) $50,000 per ounce, there ain't enough of it to break away from fiat currency.

I also think some of these governments are in for a rude awakening when they try to convert their paper gold to real gold, theoretically being held by the very same banksters who said everything was fine back in 2007.

Edited November 28, 2014 by impulse

[siampolee]

F430murci post # 4

Who writes this trash? Oh, never mind. Not a lot if brain power behind any if this.

The financial press at the behest of the bankers so as to pave the way to yet more financial chicanery.

http://t2.gstatic.com/images?q=tbn:ANd9GcR9ltZOINuDY-tj4DXHmLcNdAh4NnINpPZAWf8hihPzbXv7xsA3nA

[RustBucket]

Who writes this trash? Oh, never mind. Not a lot if brain power behind any if this.

What you really mean is that you are not astute enough to understand it... which is quite basic actually and anything but rubbish.

I will wager the USA no longer has any of that gold, as much as it probably no longer has its own gold, which has long been suspected by the US public and that the Fed Res have been lying for years.

You need to ask why Germany has to wait till 2020..... If they had it, they would give it and Germany has the right to demand it in an instant. I see very uncomfortable times ahead for the US government.

I wonder if all this is in anticipation of China, Russia and the BRICS (and probably OPEC) countries about to dump the USD as the reserve currency as well as oil currency?

Makes sense, because it will destabilize a lot of currencies around the world for a while.

But it will collapse the US economy as well as wall Street and the entire US society overnight.

That is how they will bring an end to the days of US dominance across the globe.... Here today, gone tomorrow.

Many experts are tipping this to go down some time next year.

Edited November 28, 2014 by RustBucket

[simon43]

Forgive my ignorance, but why would a country keep its gold reserves in another country? If I had a pot of gold, the last thing that I'd do is to allow someone else on the other side of the world to look after it!

There must be some benefit for a country to store its national gold reserves elsewhere, but I need an expert to enlighten me as to that reason

[green job]

No such thing as printing money,currency yes,but not money

[robblok]

Forgive my ignorance, but why would a country keep its gold reserves in another country? If I had a pot of gold, the last thing that I'd do is to allow someone else on the other side of the world to look after it!

There must be some benefit for a country to store its national gold reserves elsewhere, but I need an expert to enlighten me as to that reason

Before maybe if a country got invaded thw gold would be stolen think ww2.

Now others can steal it its security spreading the tisk if you got it spread you cant loose it at once.

Its crazy that germany does not get its gold back faster something is wrong in the USA.

If i were Germany id make a big diplomatic riot about this.

Good that my country got its money back.

Seems they might even be tipped of about problems in the USA.

[jpinx]

Switzerland will vote in the coming days I believe -- that'll be the catalyst for EU countries - one way or the other.

Politicans have been printing money and thereby creating inflation for many years. A gold standard was the reason inflation didn't really exist in former times .. a country could only have in circulation the amout of paper money that it had in gold in it's vaults.

[slipperylobster]

Saw this coming....

Euro currency...lol. Looks like a big circus.

[bitcoinbob]

the European's are asking for there gold back because they see big problems ahead for the EURO. why are the german being patient simple fact American's are sending them their old REICHMARK gold and would have a lot of explaining to do to the german public. the American's just returned 160 tons to the Netherlands in one shot so the U.S. has the gold. The America's have all the gold and more there was never any need to sell all there stolen and looted gold just print more money. question where do you think all of pre communist china gold is ???? U.S. has it that was Taiwan's down payment on any invasion from china. so the gold in american can not be audiedt too much explaining why they have all this extra gold.

[jpinx]

Saw this coming....

Euro currency...lol. Looks like a big circus.

Indeed -- The euro is the most fake currency around, being backed by nothing substantive. Germany may get it's gold back, but how many other euro-zone countries have gold in their vaults?

As an aside -- the proposal seems to be to get about 20% gold holdings, which is really not going to make much difference. 70% might make people pay attention

[robblok]

the European's are asking for there gold back because they see big problems ahead for the EURO. why are the german being patient simple fact American's are sending them their old REICHMARK gold and would have a lot of explaining to do to the german public. the American's just returned 160 tons to the Netherlands in one shot so the U.S. has the gold. The America's have all the gold and more there was never any need to sell all there stolen and looted gold just print more money. question where do you think all of pre communist china gold is ???? U.S. has it that was Taiwan's down payment on any invasion from china. so the gold in american can not be audiedt too much explaining why they have all this extra gold.

Sure sure... the US does not have the gold else Germany would have it back maybe they are patient because they dont want to cause embarrassed to the USA. That Netherlands got it back was that this was a smaller amount. Had they refused that too they would have looked real stupid.

[topt]

Who writes this trash? Oh, never mind. Not a lot if brain power behind any if this.

What you really mean is that you are not astute enough to understand it... which is quite basic actually and anything but rubbish.

I will wager the USA no longer has any of that gold, as much as it probably no longer has its own gold, which has long been suspected by the US public and that the Fed Res have been lying for years.

You need to ask why Germany has to wait till 2020..... If they had it, they would give it and Germany has the right to demand it in an instant. I see very uncomfortable times ahead for the US government.

I wonder if all this is in anticipation of China, Russia and the BRICS (and probably OPEC) countries about to dump the USD as the reserve currency as well as oil currency?

Makes sense, because it will destabilize a lot of currencies around the world for a while.

But it will collapse the US economy as well as wall Street and the entire US society overnight.

That is how they will bring an end to the days of US dominance across the globe.... Here today, gone tomorrow.

Many experts are tipping this to go down some time next year.

Care to enlighten us as to what they are going to use instead - "some time next year."?

As to collapsing the US economy - you think that is in the interest of the world in general......

[jpinx]

How many tons of gold are the germans expecting to get back ?

Just saw the answer, but 680 tonnes is not much.

Are they waiting till 2020 because of some post war agreements ?

Edited November 28, 2014 by jpinx

[muskoka]

Lots of reading here

http://kingworldnews.com/kingworldnews/King_World_News.html

and...

Russell - What The Hell Is Going On With The US Gold Hoard?

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/11/27_Russell_-_What_The_Hell_Is_Going_On_With_The_US_Gold_Hoard.html

Another Trip Down The Rabbit Hole Of US Lies & Missing Gold

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/11/26_Another_Trip_Down_The_Rabbit_Hole_Of_US_Lies_%26_Missing_Gold.html

[robblok]

How many tons of gold are the germans expecting to get back ?

Just saw the answer, but 680 tonnes is not much.

Are they waiting till 2020 because of some post war agreements ?

Probably the usa does not have its things on order. People talking about missing fold might be right.

[bitcoinbob]

in the american mind the germans have no right to that gold. the americans see it as iron curtain protection payments. why are we giving it back to them they lost mindset. and what recourse do they have cry in the media . i am telling you the american's make the swiss look honest and fair. the americans stole and looted all that gold fair and square in there minds they won. do you know who the largest depositors in the u.s. bank saudis they would confiscate that in a blink if there were any problems with them.

[Anthony5]

How many tons of gold are the germans expecting to get back ?

Just saw the answer, but 680 tonnes is not much.

Are they waiting till 2020 because of some post war agreements ?

Probably the usa does not have its things on order. People talking about missing fold might be right.

Maybe the German gold is stored at the far end of the vault, or the Americans are waiting for a large enough truck to show up

[Asiantravel]

Who writes this trash? Oh, never mind. Not a lot if brain power behind any if this.

What you really mean is that you are not astute enough to understand it... which is quite basic actually and anything but rubbish.

I will wager the USA no longer has any of that gold, as much as it probably no longer has its own gold, which has long been suspected by the US public and that the Fed Res have been lying for years.

You need to ask why Germany has to wait till 2020..... If they had it, they would give it and Germany has the right to demand it in an instant. I see very uncomfortable times ahead for the US government.

I wonder if all this is in anticipation of China, Russia and the BRICS (and probably OPEC) countries about to dump the USD as the reserve currency as well as oil currency?

Makes sense, because it will destabilize a lot of currencies around the world for a while.

But it will collapse the US economy as well as wall Street and the entire US society overnight.

That is how they will bring an end to the days of US dominance across the globe.... Here today, gone tomorrow.

Many experts are tipping this to go down some time next year.

Care to enlighten us as to what they are going to use instead - "some time next year."?

As to collapsing the US economy - you think that is in the interest of the world in general......

" As to collapsing the US economy - you think that is in the interest of the world in general......"

Of course not!

But if it is in the interests of a handful of oligarch banksters

[Scott]

I believe that some time ago Venezuela repatriated a large amount of gold. Anybody remember anything about that?

[Anthony5]

I believe that some time ago Venezuela repatriated a large amount of gold. Anybody remember anything about that?

Google learns me that is was actually " only" 211 Tonnes in total and that the majority of it was held in European banks.

http://www.bloomberg.com/news/2012-01-31/venezuela-receives-last-shipment-of-repatriated-gold-bars-1-.html

[12DrinkMore]

Who writes this trash? Oh, never mind. Not a lot if brain power behind any if this.

What you really mean is that you are not astute enough to understand it... which is quite basic actually and anything but rubbish.

I will wager the USA no longer has any of that gold, as much as it probably no longer has its own gold, which has long been suspected by the US public and that the Fed Res have been lying for years.

You need to ask why Germany has to wait till 2020..... If they had it, they would give it and Germany has the right to demand it in an instant. I see very uncomfortable times ahead for the US government.

I wonder if all this is in anticipation of China, Russia and the BRICS (and probably OPEC) countries about to dump the USD as the reserve currency as well as oil currency?

Makes sense, because it will destabilize a lot of currencies around the world for a while.

But it will collapse the US economy as well as wall Street and the entire US society overnight.

That is how they will bring an end to the days of US dominance across the globe.... Here today, gone tomorrow.

Many experts are tipping this to go down some time next year.

We have been fed this nonsense by experts and their acolytes for years.

Looking over the figures I believe the world's greatest consumer just reported an annualised 3.9% growth and the USD is getting stronger.

Don't let that worry you in the predictions of gloom and doom though.

[Pinot]

Some may see this and think, gold is on the way up again. Gold has always been a bad investment. Gold is always speculative. There are many people out there who believe that it's just a matter of time till gold shoots back up. The gold bugs are always trying to manipulate. Don't be fooled by any talk of gold coming back. The last year or so has shown gold to be what it is. Lot of paranoid idiots out there hording gold, buying ammo and keeping cases of ramon soup in the garage. The US dollar and stocks are probably the best place to be today.

[Baerboxer]

the European's are asking for there gold back because they see big problems ahead for the EURO. why are the german being patient simple fact American's are sending them their old REICHMARK gold and would have a lot of explaining to do to the german public. the American's just returned 160 tons to the Netherlands in one shot so the U.S. has the gold. The America's have all the gold and more there was never any need to sell all there stolen and looted gold just print more money. question where do you think all of pre communist china gold is ???? U.S. has it that was Taiwan's down payment on any invasion from china. so the gold in american can not be audiedt too much explaining why they have all this extra gold.

Some historians suggest America also received a considerable portion, if not all, the gold looted by the Imperial Japanese forces from the countries they conquered in WW2. None has been returned or ever accounted for. And Japan ain't saying.

[HUAHIN62]

It is clear that the move in Europe is tilting towards a gold standard of some sort, with nations beginning to realise that the days of the fiat currency regime could be numbered.

Do some math. Take all the gold in all the vaults. Multiply it by today's price. Compare that number with the total world GDP.

Unless gold goes to (something like) $50,000 per ounce, there ain't enough of it to break away from fiat currency.

I also think some of these governments are in for a rude awakening when they try to convert their paper gold to real gold, theoretically being held by the very same banksters who said everything was fine back in 2007.

It will not be a pure gold standard but one that contains a basket of currencies and gold that will become the new world reserve currency (instead of the USD). The IMF have already done studies on this a while back. The implication will be that currencies backed by gold will be stronger than ones with less or no gold backing. The real problem will be the derivatives market which is +- 70 times the world GDP. This market cant be unwounded it must first crash before it can be stopped. When it crashes the world economy will grind to a halt for months if not years. The big to fail banks will fail as they are the biggest players in this market and bail ins will follow. In the US there is about $ 19 trillion deposits thats supposed to be covered by the FED but the Fed only have $ 53 billion to cover it with.

Yes you are right the COMEX have been geared at between 70:1 and 100:1 (70 ounces in contracts to 1 ounce in actual gold). They are however covered as their contracts states that they can pay you in fiat if they dont have the gold.

Lets hope it doesnt get to that point, but our species realy know how to f things up.

[Asiantravel]

Some may see this and think, gold is on the way up again. Gold has always been a bad investment. Gold is always speculative. There are many people out there who believe that it's just a matter of time till gold shoots back up. The gold bugs are always trying to manipulate. Don't be fooled by any talk of gold coming back. The last year or so has shown gold to be what it is. Lot of paranoid idiots out there hording gold, buying ammo and keeping cases of ramon soup in the garage. The US dollar and stocks are probably the best place to be today.

Here we go again……… So you're right and two thirds of the population are wrong

" Gold has always been a bad investment "..........but it took 6000 years to form that opinion

Edited November 28, 2014 by Asiantravel

[BlackJack]

no its Japan that will start the slide down the tubes

google this

On the Verge of Chaos

By John Mauldin | Nov 24, 2014