Much of the internet’s gold
and precious metals sites are still buzzing over Germany’s decision to
repatriate some of its gold. Notwithstanding the overwhelming evidence
suggesting there is no more to the transfer than meets the eye and the
complete LACK OF EVIDENCE to support the conspiracy theories that are going
viral, people want to continue to believe that something fishy is going on
and that there is more to this story than meets the eye.
I wrote in my
initial post on this subject that no matter what Germany did they were going
to be the subject of conspiracy nuts who look for every news item to spin out
of context to support their meme.
Germany was dammed if they
chose a 7 year period or an immediate delivery. Here’s why;
- The fact
they announced they will make this move over a period of 7 years has now
been used by the aforementioned conspiracy theorists as a basis to
spread their speculative meme that the gold isn’t there, something
they’ve been arguing for years.
- Alternatively,
if Germany claimed immediate
repatriation, it is fair to suggest (given their history) that these
same outlets would have started sensationalizing that an imminent
currency failure was imminent which would be (in their eyes) the only
reason for an immediate transfer.
You can’t win with these guys!
That’s the bottom line. They would have found a way to spin this story
to fit their meme. It happens every time.
I also emphasized in that post
that while all of the conspiracy theory/gold bug sites were speculating that
the Federal Reserve’s vaults had to be empty (which in their eyes was the
reason why they agreed to a 7 year transfer of so little gold), that none of
these sites were responsible enough to report Bundesbank member, Carl-Ludwig
Thiele’s statements that refuted the main argument of the conspiracy nuts.
Citing the New
York Times, I pointed out;
Mr. Thiele denied there was
any mistrust. “We have no
doubts about the integrity of other central banks,” he said. “We’re not aware of any
irregularities.”
The government
auditing agency, the Bundesrechnungshof, called on Bundesbank officials in a
report to Parliament to conduct an inventory of the thousands of bars of
German gold that are stacked in foreign vaults.
Mr. Thiele said that
he and other Bundesbank officials personally visited the German gold abroad
and that he was satisfied that it was all there.
Again though, none of the
conspiracy laden sites chose to report this fact (because it would destroy
the allegations they made. You see, it makes their claims baseless so
they won’t include it in their ‘stories’.
Yesterday,
I wrote about how it might be time to put this entire Germany/Gold
conspiracy theory to bed. Carl-Ludwig Thiele’s comments were finally picked
up by DW-Deutsche Welle
who reported on the event in a web piece they wrote a few days ago.
Still, we have no official correction to the initial conspiracy theories by
the usual suspects. This is not what they want out there … it doesn’t support
their claims that something funny is going on.
Today, Business Insider weighed in with a story
titledWhy All Of The Conspiracy Theories
About Why Germany Is Taking Its Gold Out Of America Are Bunk
The following chart shows how
much gold Germany will have in Frankfurt, New York and London after their
relocation moves are complete by 2020. The only real noticeable
difference is that the 375 tonnes they had in France will no longer be there,
choosing instead to store all that gold on local soil.
You can see just how little
will really change after their relocation is complete.
I choose again to harp on my
comments made in my first post that spoke to no matter how the Germans chose
to repatriate some of their gold, the story was going to spun by the usual
conspiracy suspects in order for them to attempt to justify their long
standing claims that the vaults in New York were empty. Business
Insider’s title actually goes right to the point.
Deutsche Bank commodity
analysts Daniel Brebner and Xiao Fu recently weighed in on the German
Bundesbank's decision for Business Insider and here’s what they had to say:
Brebner and Xiao write:
Given the highly ‘charged’ or
politicised nature of the gold market as it pertains to central bank actions,
particularly in the Western World, central bankers are generally highly
sensitive to public perception and to perceptions of trust. In our view the Bundesbank is
responding in large part to the Court of Auditors, who themselves have no
doubt observed the increase in value of German gold reserves and may wish to
raise the standard by which gold is treated on their books.
Furthermore, we
believe that the slow transfer of gold from the US Fed in NY back to
Frankfurt, at 50t/year, is partly a reflection of its wish to avoid any
perception of a change in confidence in the US Fed. A secondary factor
could perhaps be the reluctance to put undue strain on the gold refining
sector.
Moreover, the
Deutsche Bank analysts say the timing makes perfect sense:
For various
historical/liquidity reasons many central banks have in the past held their
gold reserves in multiple jurisdictions. These reasons are, in many cases, no
longer valid. This and the increased value of gold holdings combined with
heightened budgetary pressures that many governments are now facing is, not
surprisingly, resulting in a greater call to track assets more closely. On this
basis, we believe the timing of the high profile German repatriation process
is not altogether unexpected.
So, this should put most of
the major conspiracy theories to rest.
Read more: http://www.businessinsider.com/deutsche-bank-...1#ixzz2Ip9r2jD3
I agree that the conspiracy
theories should be laid to rest (as I wrote last night) but we all know that
this evidence and all other evidence that dispels the conspiracy theories of
those that stand to profit from ensuring those that seek their daily dose of
silver and gold related market con-job stories will continue to be ignored.
At the end of the day, conspiracy theories are often lacking in fact instead
choosing to substitute fact for speculation.
