Why is Germany repatriating their gold?
This week few will have missed reports that Germany is getting closer to bringing its gold investment reserves home. Following questions asked in Parliament in 2012 regarding the 3,396 tonnes of gold bullion, the Bundesbank are set to announce tomorrow a new concept in how they store Germany’s gold reserves.
Reported in an exclusive by German newspaper Handelsblatt, Buba intends to remove some of its gold held in New York, and all of the gold held by the Banque de France. Considering various representatives of the German central bank denied claims that they would be looking into repatriating the gold bullion investments, one has to wonder what’s made them take such a decision.
As we have outlined above, no one really knows how this financial crisis will unfold. Whilst financial crises have, unfortunately, become too frequent, in the last forty years, never has one been this contagious, far-reaching or beyond the understanding of the policy-makers. Why shouldn’t the Germans get their gold back under control? They own it and most likely, they’ll need it.
Do you think Germany should take her gold home? Tell us what you think in the comments column below.
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