Most of Germany’s gold reserves (3,396 tons worth around €130 billion – like Greece’s second bailout program) are held abroad, with a big portion in the Federal Reserve in New York.
Germany wants a closer audit of its gold reserves, and decided to bring 150 tons of gold to Germany for melting, reforming into new bars and testing their authenticity.
Deutsche Welle reports about this move, and mentions that only 30% of the euro-zone’s locomotive are held at home. France and the UK are also home to some German gold. The US has the largest amount of gold: 8,133 tons.
The move raised some eyebrows: doesn’t Germany trust the Federal Reserve? Could the move be related to a potential euro-exit of Germany?
Germany has stressed that it trusts its foreign partners, but would still like to be able to audit its vast gold holdings. On the latter speculation, it is important to note that the process of shipping these 150 tons is expected to take no less than 3 years. So, in an unlikely case of euro-exit by Germany sometime in the near future, only a small portion of this gold will be available.
The estimated cost of a German euro-exit is 3 trillion euros, according to the German Council of Experts. German exports enjoy the lower value of the euro.
So, while this news provides interest for goldbugs, it will probably remain an anecdotal story.
For more on gold and other commodities, see Trading NRG.
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