Why Deutsche Bundesbank had to promise to leave 1200 tons of gold in New York
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Re: Why Deutsche Bundesbank had to promise to leave 1200 tons of gold in New York
#2Bloomberg has a very interesting article on this topic also:
https://www.bloomberg.com/news/features/2015-02-05/germany-s...
Reading in between the lines, it seems as if a good chunk of gold has gone missing and there is an attempt by both sides to save face.
Re: Why Deutsche Bundesbank had to promise to leave 1200 tons of gold in New York
#3"I am not criticizing the Bundesbank for storing 37 percent of Germany’s official gold in in a place there it has no control over it. It seems clear that they negotiated hard with the US and acted rather shrewdly."
I am sorry, but as a layperson, I do not know what's to negotiate. If I own something, I should be able to take it home whenever I want?? This is mind-boggling. What's the point of property that you cannot access? That's not property.
Re: Why Deutsche Bundesbank had to promise to leave 1200 tons of gold in New York
#4if you're into reading about gold, you can do a lot worse than reading the archives of http://fofoa.blogspot.com/
Re: Why Deutsche Bundesbank had to promise to leave 1200 tons of gold in New York
#5The gold is stolen.
Re: Why Deutsche Bundesbank had to promise to leave 1200 tons of gold in New York
#6"I am not criticizing the Bundesbank for storing 37 percent of Germany’s official gold in in a place there it has no control over it. It seems clear that they negotiated hard with the US and acted rather shrewdly." I am sorry, but as a layperson, I do not know what's to negotiate. If I own something, I should be able to take it home whenever I want?? This is mind-boggling. What's the point of property that you cannot…
Yeah. Can anyone comment on the trustworthiness of this blog post? I also do not understand what is there to negotiate (except storage fees).
Re: Why Deutsche Bundesbank had to promise to leave 1200 tons of gold in New York
#7Bloomberg has a very interesting article on this topic also: https://www.bloomberg.com/news/features/2015-02-05/germany-s... Reading in between the lines, it seems as if a good chunk of gold has gone missing and there is an attempt by both sides to save face.
I'll just leave this here: http://www.zerohedge.com/news/2013-03-02/why-jpmorgans-gold-...
Re: Why Deutsche Bundesbank had to promise to leave 1200 tons of gold in New York
#8I think the background to this is that, during the Cold War, Germans were worried about a possible Soviet invasion, so storing gold in the US at the time made sense. As the article states, conditions have changed somewhat and there has been political pressure to return some of the gold in recent years.
Re: Why Deutsche Bundesbank had to promise to leave 1200 tons of gold in New York
#9"I am not criticizing the Bundesbank for storing 37 percent of Germany’s official gold in in a place there it has no control over it. It seems clear that they negotiated hard with the US and acted rather shrewdly." I am sorry, but as a layperson, I do not know what's to negotiate. If I own something, I should be able to take it home whenever I want?? This is mind-boggling. What's the point of property that you cannot…
> that's not property
That's the whole point. The US government effectively treats other country's good reserves as their own.
It was shrewd negotiation because they got much more than zero, and then US government/Federal Reserve has significant negotiating ability on its side by virtue of having the world reserve currency and the ability to impact monetary policy and systems so heavily on a global scale.
Re: Why Deutsche Bundesbank had to promise to leave 1200 tons of gold in New York
#10Why do countries bother to hold gold? Wouldn't it be sensible to sell as much of it off as possible? (I'm asking like "ELI5" because I'm sure there is a reason)