Why are most central bankers so keen not to proceed with gold repatriation? What is the true picture for gold held in official vaults?
LONDON (MINEWEB) – One senses a bit of a momentum growing in the precious metals sector. Is this just wishful thinking from someone who is something of a long-term believer in gold and silver, or is there some substance behind the feeling? After all gold is having trouble making any kind of decisive move above $1,200, being knocked back every time it sticks its head above the 1,200 parapet. But then, despite the knockbacks, it still seems to be clinging on, just about, to the $1180s and 90s with the occasional foray down a few dollars.
On the negative side the Swiss gold referendum looks to be going to come up with a No vote after unprecedented lobbying and scaremongering from the Swiss establishment. Even so the fact that this referendum is even taking place reflects the obvious unease which is running through sectors of the European financial community regarding the true levels of physical gold held on their behalf in the US in particular.
This suggests the beginnings of a growing lack of trust in the political and financial establishment. If this trust evaporates much further then government attempts to prop up their fiat currencies, which might otherwise be failing, will be called further into question as will government statistics purporting to show things are getting better the whole time while most of the people are not seeing the fruits of the so-called financial recovery.
Of the world’s largest holders of gold after the U.S.A. as far as official IMF statistics show, there are/have been moves, or calls, to bring home gold held in U.S. vaults by the No. 2 national holder, Germany, in France the no.4, Switzerland (No. 7) and The Netherlands (No.9) which has already quietly repatriated 122 tonnes from the U.S. while Venezuela (No.15) has also already succeeded in repatriating all its foreign-held gold holdings. A number of smaller nations have also been expressing disquiet.
Meanwhile No. 5 (Russia) is increasing its gold reserves (held at home) month on month and China (No.6) is widely believed to have been expanding its gold reserves (also held at home) to a figure well above its official 1,054 tonnes level, but not reporting the increase to the IMF with the likely justification that this is being held in a separate account from its foreign reserve holdings.
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