Bank of England gold – the doubts remain

IMG Auteur
Published : January 28th, 2013
559 words - Reading time : 1 - 2 minutes
( 10 votes, 4.1/5 ) , 1 commentary
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
1
comment
Our Newsletter...
Category : Gold and Silver

24hGold - Bank of England gold...Last week I wrote about the mess the Bundesbank has found itself in over its gold bullion. But they are not alone: the Dutch, Austrian, Mexican and now even the Swedish central banks are also coming under public pressure to explain themselves and to repatriate their gold.

The question that is central to the blind trust placed by central banks in the Bank of England and the Federal Reserve Board is whether or not this trust has been abused. There appear to be no audits; lessees have sold unrecorded gold into the markets; and there is evidence of outright sales using gold swaps and sight accounts (a sight account does not require physical gold to back it). With this in mind we can make a stab at quantifying the deception (if it exists), starting with the table below.

24hGold - Bank of England gold...

The table assumes that China, Russia and the other Asian states within their sphere of influence hold no gold in London or New York, because their actions are diametrically opposed to attempts to keep a lid on the price. Furthermore, they have very different geopolitical priorities, ruling out any trust-based monetary relationships with the West. Venezuela took her gold back last year. Otherwise it is assumed all central banks operate within the normal central banking framework.

Our objective is to establish whether the 5,738 tonnes of gold held by the Bank of England is reasonable. The figures in the table include the gold custody figures reported by the Bank of England in its last Annual Report, IMF-reported holdings of individual countries and the Federal Reserve Board’s International Summary Statistics (Page 3 for earmarked gold). The unknowns are broadly three:

  • I can find no evidence of gold sight accounts in New York, but given the physical market is in London this is perhaps not surprising. It is assumed in the table that all the US and earmarked gold actually exists and none is held in London.
  • Custody at the Bank of England includes bullion held for both central and bullion banks, and there is no breakdown given. Central bank holdings will therefore be less than the 5,738 tonnes stated.
  • We can only make an educated guess at the how much central bank bullion is held either in countries of ownership or at other central bank depositories.

To establish the level of central bank reserves held in London we should note disclosures to date. Mexico says she has nearly 95% of her gold in London and only 1% in New York. Austria has 80% of her gold in London. But Holland, echoing Germany (13%) says she has only 18% in the UK.

However, the remaining non-aligned countries that have added to their bullion holdings over the years will have done so in London, and for historical reasons member-nations of the Commonwealth can be expected to have nearly all their gold in London, and for most countries keeping gold reserves in London is safer than in their home capitals.

This suggests that the amount of gold held by the Bank of England should be significantly greater than the 5,738 tonnes declared, particularly when bullion bank deposits within that total are accounted for. And if Austria’s 80% in London is anything to go by, despite the obvious convenience of the rival Zurich market on her doorstep, the custody figure should be closer to 11,500 tonnes.

Data and Statistics for these countries : Austria | China | Germany | Mexico | Russia | Venezuela | All
Gold and Silver Prices for these countries : Austria | China | Germany | Mexico | Russia | Venezuela | All
<< Previous article
Rate : Average note :4.1 (10 votes)
>> Next article
FinanceAndEconomics.org is the website of Alasdair Macleod, who has a background as a stockbroker, banker and economist. Alasdair is available for seminars, speeches and interviews. Please check on Services to get further detalils.
WebsiteSubscribe to his services
Comments closed
  All Favorites Best Rated  
In other words all the banks listed in the above article as follows: Bank of England, the Federal Reserve Board, the International Monetary Fund(IMF), that are being used to reporting how much gold are in the various vaults ARE CONTROLLED by the Rothschilds Banking Cartel and their private holdings are ?? some say half of the worlds total amount of gold now known. So its the WOLF telling the Sheep how may we help you all into our fold(den). Ya right, we can trust what you guys say, then thinking what other countries have others trusted in these same bozo`s: the so-called ROGUE STATES, current and now others who were called ROGUE States, but have been `cleaned` of that Government Run Central Bank notion by armed conflict with the United States Military, and OH yes `cleaned` of their gold as well; and are now in the family for better or worst till death does them in if they speak a word to anybody.
Rate :   1  1Rating :   0
EmailPermalink
Latest comment posted for this article
In other words all the banks listed in the above article as follows: Bank of England, the Federal Reserve Board, the International Monetary Fund(IMF), that are being used to reporting how much gold are in the various vaults ARE CONTROLLED by the Rothschi  Read more
Invention - 1/28/2013 at 11:02 AM GMT
Rating :  1  1
Top articles
Latest Comments
Predicting The Next Crisis, Programming Behavior: “The Ability To T...
20:11S W.
Excellent article with a small touch of healthy paranoia. Good idea, 'leave the phone at home sometimes' Go smell the roses !
Racism-O-Rama
19:50S W.
Fancy specialising in race and gender studies ! And then do exactly what? I suspect, write papers ad infinitum that hardly anyone would read.
Who Moved My Xanax?
17 JanThemis0
I actually agree with a lot of what Trump says while deploring the tone and his lack of judgment in making such remarks publically while in office.
Socialist Dystopia: Starving Venezuelans Loot As Runaway Inflation ...
17 JanThemis
There is a 19th century English word that is particularly appropriate in this instance - "kakistocracy", i.e. government by the worst or least qual...
Who Moved My Xanax?
15 JanMr. Gnawbone1
It is an exploitation of the ignorant and uninformed population, but that is what happens when they pay attention to meaningless information and ...
Racism-O-Rama
15 JanMr. Gnawbone1
It sounds racist, so it has to be. Overton Bubble at work, the faculty were programed to respond as if to a Pavlovian Bell. There is no way to ch...
Racism-O-Rama
16 Jandennyc2
Ah, yes, black welfare recipients receiving our hard earned and easily spent tax dollars and providing us nothing save their lives for our investme...
Racism-O-Rama
15 JanDoom2
It's not just the English that is considered RACIST, it's also mathematics, and a wide range of other things: http://professorconfess.blogspot...
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS
Take advantage of rising gold stocks
  • Subscribe to our weekly mining market briefing.
  • Receive our research reports on junior mining companies
    with the strongest potential
  • Free service, your email is safe
  • Limited offer, register now !
Go to website.