Germany Takes Gold: Bundesbank to Retrieve 1,950 Tons from U.S., France

×
gold bars(Updated: 3:58 p.m.)
By JUERGEN BAETZ


BERLIN -- Germany's central bank will repatriate some of its massive gold reserves stored in vaults in the United States and in France, a business daily reported Tuesday.

The Bundesbank's overall reserves of 3,400 tons are worth about $200 billion at current market rates.

The central bank now plans to bring back to Germany some of the 1,500 tons of gold stored in the vaults of the Federal Reserve in New York, and all of the 450 tons currently stashed with the Bank of France in Paris, according to Handelsblatt.

The central bank declined to comment on the report but on Wednesday will present a new plan to manage the gold reserves of 270,000 gold bars, the world's second-largest stockpile, trailing only the U.S. reserves.

Most of Germany's reserves have been stored abroad since the Cold War over fears of a Soviet invasion.

But the central bank came under pressure last year when Germany's independent Federal Auditors' Office last year concluded it failed to properly oversee its gold reserves. The auditor suggested the central bank should carry out regular inspections of the gold held abroad to verify its book value or change the reserves' management.

The auditors' report stunned Germany, where the Bundesbank routinely tops polls of the nation's most trusted institutions. The central bank was taken aback and maintained it didn't see the need for more scrutiny in overseeing the reserves, saying "there is no doubt about the integrity of the foreign storage sites."

But the debate on the gold reserves, most of which are held by foreign authorities, caused some inevitable conspiracy theories questioning their very existence. Several politicians then jumped on the issue and called for some of the reserves to be repatriated.

Since the postwar days, when Germany worried about a possible land war with the Soviet bloc, most of the reserves have been kept in the vaults abroad. Just under half of them are now stored in New York, a little more than 10 percent each in London and Paris, with the remaining third kept in vaults at the Bundesbank's headquarters in Frankfurt.

Increase your money and finance knowledge from home

Managing your Portfolio

Keeping your portfolio and financial life fit!

View Course »

What is Inflation?

Why do prices go up?

View Course »

Add a Comment

*0 / 3000 Character Maximum

117 Comments

Filter by:
puritianb

Is there any such thing as a gold note. If so then Germany get ready for an I. O. U.

February 13 2013 at 3:19 PM Report abuse rate up rate down Reply
annabekoach

Good luck getting your gold back. The US has sold and resold that gold for years.

January 18 2013 at 12:18 AM Report abuse +1 rate up rate down Reply
nolefever

if i had a 401k or ira that was in dollars i would be worried

January 17 2013 at 8:04 PM Report abuse rate up rate down Reply
Mrs. Frantz

Better bring it home and keep it there. Greece, France and Spain are going to be needing more assistance.

January 17 2013 at 8:03 PM Report abuse +1 rate up rate down Reply
wm52de

Sorry France but Wall Street invested and lost it along with the billions of dollars of peoples money lost in high risk investments.
And as usual no one will be charged, prosecuted or jailed. That's how Wall Street rolls with the help of regulators doing their job in Washington. But Wall Street bonuses and campaign money will be hugh.

January 17 2013 at 6:24 PM Report abuse +3 rate up rate down Reply
wjs27skeet

Hey Germany, sorry but Congress and the President spent it. You see, they're famous for spending other peoples money.

January 17 2013 at 11:28 AM Report abuse +2 rate up rate down Reply
1 reply to wjs27skeet's comment
DAVE VANDENBOSCH

I think Bush spent it on his wars, he sure didn't spend here on the home land.

January 17 2013 at 11:38 AM Report abuse -3 rate up rate down Reply
Master Wong

I wonder how much of that gold came from the Jews they massacred and from their estates plus the gold fillings they took from the dead's teeth?

January 17 2013 at 9:32 AM Report abuse -3 rate up rate down Reply
gregrobsn

So let me get this straight... Germany was afraid of a Soviet invasion... so they stored some of their gold in France???

January 17 2013 at 8:06 AM Report abuse +5 rate up rate down Reply
1 reply to gregrobsn's comment
lonjack4

Good point. Very good point.

January 17 2013 at 12:26 PM Report abuse +2 rate up rate down Reply
lusotropicalism

It's Germany's, no one else's. And quit with the mandolin/violin music about how 6 million Jews were slaughtered by Germans, It was war. No one speaks about the 64 million non-Jews who lost their lives in the European theater of war alone, many of whom were also slaughtered in death camps, forced (hard) labor camps, and warfare. And I don't believe in "chosen people."

January 16 2013 at 9:36 PM Report abuse -2 rate up rate down Reply
2 replies to lusotropicalism's comment
philiclese

Death camps arent war. Death camps are death camps.

January 17 2013 at 11:36 AM Report abuse +6 rate up rate down Reply
annabekoach

Lusotropicalism,

You are mentally retarded. You should be medicated!

January 18 2013 at 12:19 AM Report abuse +2 rate up rate down Reply
jwyola

Bernanke and Obama just bought a U Boat

January 16 2013 at 9:24 PM Report abuse +4 rate up rate down Reply