"Another amusing incident arose from the fact that the Reichsbank maintained a not inconsiderable gold deposit in the Federal Reserve Bank in New York. Strong was proud to be able to show us the vaults which were situated in the deepest cellar of the building and remarked:
'Now, Herr Schacht, you shall see where the Reichsbank gold is kept.'
While the staff looked for the hiding place of the Reichsbank gold we went through the vaults.We waited several minutes: at length we were told:
'Mr. Strong, we can't find the Reichsbank gold.'
Strong was flabbergasted but I comforted him. 'Never mind: I believe you when you say the gold is there. Even if it weren't you are good for its replacement.'"
Hjalmar Schacht, Autobiography: Confessions of 'The Old Wizard', 1956, p.245
“Currency warfare is the most destructive form of economic warfare."
Harry Dexter White, US Representative to Bretton Woods, 1944
"This is a story based on a report out of the Ukraine. Obviously I do not know yet if it is accurate. The information coming out of the Ukraine and Crimea should be sifted carefully, no matter what the source. I find this one hard to believe. I am informed by highly reliable people that no one cares about gold anymore. And very important analysts claim that transporting many tonnes of gold is very difficult, and so unwieldy and fraught with peril that it must be a multiyear project... Just ask Germany."
Jesse,
Ukraine Gold Reserves Said To Be Put On Plane For Safekeeping in the US, 9 March 2014
"Like quite a few people I found myself asking, 'Why the Ukraine? Why the sudden push there, risking conflict with Russia on their own doorstep? Why are we suddenly risking all to support what was clearly an extra-legal coup d'état?
It is telling perhaps that one of the first things that happened after the coup d'état is that the Ukraine's gold was on a flight to New York.
Follow the money.
Jesse,
Ukraine: The Global Corporate Annexation, 21 April 2014
"As per the report of a source from the Ukrainian Government, the Ukrainian gold reserves were confirmed to be moved on an aircraft from the Bristol Airport at Kiev to the United States. The report says that about 40 tons of gold was flown from Ukraine to US. However, according to the World Gold Council, Ukraine has in store 36 tons of gold reserves."
Ploumis, Ukraine Gold Reserves Reported To Be Hastily Aircrafted To U.S, Shanghai Metals Market, 12 Mar 2014
YIV, July 17 (Reuters) - Ukraine's central bank has sold $12.4 billion of gold reserves since the beginning of Russia's invasion on Feb. 24, the bank's deputy head said on Sunday. "We are selling (this gold) so that our importers are able to buy necessary goods for the country," Deputy Governor Kateryna Rozhkova told national television. She said the gold was not being sold to shore up Ukraine's hryvnia currency."
Reuters, Ukraine central bank has sold over $12 billion of its gold reserves, July 17,2022
"Gold Reserves in Ukraine remained unchanged at 27.06 tonnes in the fourth quarter of 2023 from 27.06 tonnes in the third quarter of 2023. Gold Reserves in Ukraine averaged 25.29 tonnes from 2000 until 2023, reaching an all time high of 42.61 tonnes in the first quarter of 2014 and a record low of 13.40 Tonnes in the first quarter of 2000." source: World Gold Council
Trading Economics, Ukraine Gold Reserves, 2024
I have not been able lately to find out exactly where the gold of the Ukraine is, and any encumbrances and claims there may be placed on it. Although there does seem to be less of it, and the Ukraine minister knows what it was not used for.
The World Bank and the World Gold Council have been reporting that nation's reserves including FX and gold, but the details seem to be a bit hard for me to find in the fog of war. But I am sure it is safe somewhere, and being put to good use on behalf of the people.
But I seem to recall when the people of Germany asked for the return of their gold in 2012, that request presented a mountain of practical difficulties.
I am sure this will all be sorted out in time, as Herr Schacht had said, so many years ago.
Stocks slid down to their next support levels again today.
There seems to be a disturbance in the force.
Stock option expiration tomorrow.
Gold bounced, while silver lost a bit more of its recent gains.
The Dollar bounced back up to the 106 handle.
The VIX is waffling around at a slightly highest level.
The geopolitical environment is simmering on several fronts of proximate interest to the US.
Uncle Joe the peacemaker.
Have a pleasant evening.
