Germany continues to demand its gold back
By Peter Walden, News Editor
28 Jan 2016
Germany's Central Bank announced yesterday they had successfully repatriated 200 tonnes of gold last year. 99.5 tonnes was returned form the New York Fed and a further 110 tonnes from Banque de France in Paris. The Bundesbank plans to repatriate 50% of the countries gold by 2020.
Prior to the euro zone meltdown the majority of Germans gold was vaulted abroad. Vaulting gold abroad was a legacy of the post war Bretton Woods’s system and the threats posed by the cold war.
The pace of repatriation is slow when you consider 10,000 tonnes of gold are imported and export out of Switzerland on a annual basis. The slow progress has led many to speculate that Germany’s gold has been sold into the market in an attempt to suppress the price.
The Bundesbank has been criticized for a lack of transparency and for failing to provide serial numbers and declining to publish photographic evidence of the repatriation. Unless evidence is provided doubts over Germany's true gold holding will remain.