Is the Bundesbank feeling unease with 2/3 of its gold reserves held abroad? This repratriation is a telling story about Germany's confidence in France and the FED.

1. http://marketsandbeyond.blogspot.com/
http://www.pcgwm.com/
The Bundesbank repatriates its gold reserves
Germany, the holder of the world’s second largest gold reserve, last week decided to
repatriate some of its 3,400 tons of gold not already in its vaults to reach 50% in 2020.
What to make about this?
The FT continues its anti-gold stance along the lines of the barbaric relic and the WSJ cites
the pressure of populism.
One may also point at a sensible move to make sure that real assets are held at home. If
this is true, it tells a lot about the confidence of the Bundesbank with some of its
counterparts…A remake, at the central banks level, of banks distrusting each other during
the financial meltdown which led to a freeze of the interbank market?
The most interesting point is that the Banque de France will end up with no German gold
and The FED will see its holding decreasing by 30%, for a total consideration of 674 tons
or USD 36 billion at current market price, whilst the BoE will stay at the same level. This
could be a barometer of Germany’s assessment of its counterparties quality.
Source:
Deutsche Bundesbank: Deutsche Bundesbank’s new storage plan for Germany’s gold
reserves
http://www.bundesbank.de/Redaktion/EN/Pressemitteilungen/BBK/2013/2013_01_16_
storage_plan_gold_reserve.html
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