Fermer X Les cookies sont necessaires au bon fonctionnement de 24hGold.com. En poursuivant votre navigation sur notre site, vous acceptez leur utilisation.
Pour en savoir plus sur les cookies...
Cours Or & Argent en
Dans la même rubrique

Hands Off Germany's Gold!!!

IMG Auteur
Publié le 27 octobre 2011
1060 mots - Temps de lecture : 2 - 4 minutes
( 3 votes, 5/5 )
Imprimer l'article
  Article Commentaires Commenter Notation Tous les Articles  
Notre Newsletter...
Rubrique : Or, Argent et Monnaie





Gold still represents the ultimate form of payment. Why throw it away before the Euro collapses...?

"HANDS OFF!" shouts German newspaper Bild today. "Failed states are still going to get our gold," screams the tabloid's headline.

Hmmm. "This may not be true," admits the opening sentence of the article itself. "But nevertheless!"

So what is getting Germany's version of the New York Post and Britain's The Sun - only with topless models on page 1, not 3 - so excited that it has to admit its own headlines are false in the very next line? "If Germany's exposure to the Euro-crisis rescue plan is expanded, it will be only a matter of time before the gold of the German Federal Bank melts in the debt fire!" reckons Bild columnist Einar Koch.

Not so fast, Eurocrats. Ruling coalition party politician (and "Euro rebel") Peter Gauweiler says that "Our gold reserves, only half of which by the way are still stored in Germany, are sacrosanct! Who knows how urgently we will need our gold treasure!"

Bild sures loves exclamation marks. But might it be onto something? Might the Euro bail-out mobsters gathered in Brussels to save the single currency really attack the world's second-largest national gold reserves - a full 3,401 tonnes - to raise cash where the European Central Bank won't print it?

In a word, no. Bild's rabble-rousing blocks them politically, while the terms of the Euro treaty blocks them legally. So never mind that even Germany's hoard, worth €135 billion at Wednesday's London PM Fix, is barely equal to half of Greece's outstanding debt. Selling the family silver would signal the final, ultimate crisis - Götterdämmerung - yet again. National central banks cannot use their reserves to plug holes in their government's finances (as the Banca d'Italia and ECB had to remind Silvio Berlusconi in 2009), let alone another government's books.

This isn't to say they shouldn't. Eurozone central banks hold 61% of their reserves in gold after all. So they are "overweight gold by any measure" as GFMS chairman Philip Klapwijk put it in 2010, just as the obvious buyers (or cash lenders), Asian central banks, are "underweight" by the same token with just 3% of their huge foreign currency reserves, on average, in gold. Nor is it to say they can't; British chancellors got the Bank of England to breach its Charter of 1844 three times in the following 20 years, as Brad DeLong notes, printing more money than the law allowed in "extraordinary and unforseen emergencies".

Nor are we saying there's no precedent for it. Some 346 tonnes of gold was used as collateral by 10 commercial banks in Europe just last year, raising Dollar loans from the central banks' central bank, the Bank for International Settlements, in what the BIS called "regular commercial activities". Romania used gold as collateral to secure foreign-currency loans in 1974, as Dr. K.Lakshmi of the Saudi University relates, scrambling to deal with balance of payments problems after the first oil-price crisis. Italy did the same that year, with German chancellor Helmut Schmidt acting with Bundesbank president Karl Klasen to lend Rome $2 billion without first alerting the West German central bank's decision-making council. India similarly raised cash using gold bullion to restock its foreign currency reserves after its balance of payments crisis of 1991 (also sparked by an oil-price shock after Gulf War I), pledging 20 tonnes via UBS in Switzerland and 40 tonnes via the Bank of England to secure IMF support - support it then reciprocated, long after repaying the loans, by buying 200 tonnes of IMF gold to help restructure the ailing Washington lender's own balance-sheet in 2009.

Note, however, that all these states were very desperate. Note also that they were very much alone, rather than part of a currency union supposedly built on mutual support and respect. Note too that the loans raised were for the national central bank's foreign exchange reserves - run down by attempting to defend its singular currency on the forex markets - rather than paying down debt. The massive European gold sales of the late 1990s and early 2000s did the same, turning gold into other government's debt but not being used to finance spending. Indeed, even the Russian economic meltdown ofmid-1998 only saw rumors of outright gold sales. The reported data merely showed a swap - gold for cash, with the two set to be switched back in due course - of much less than the 200 tonnes whispered in London's gold market.

And who wants to ape post-Soviet Russia just yet anyway?

"Gold still represents the ultimate form of payment in the world," as then-US Fed charman Alan Greenspan told Congress in 1999. "It's interesting that Germany could buy materials during the war only with gold. In extremis fiat money is accepted by nobody and gold is always accepted and is the ultimate means of payment..."

For now, the Eurozone doesn't need to resort to using gold to raise cash. Because like Peter Gauweiler suggests, even with a tabloid screetch, such a move might just prove all-too necessary AFTER the Euro pact fails and the union dissolves. Italy knows this. Greece, Portugal and Spain too. And not least the current union's richest member - and the world's second-largest gold holder - Germany.

"Before one gram of Bundesbank gold is pawned, the Greeks, Portuguese, Spanish and Italians must first throw their gold on the market," says Einar Koch at Bild. And seeing how much they'll want to keep hold of their gold right now - just in case - that puts Germany's 3,401 tonnes a long way from the market today.

Adrian Ash

Head of Research


You can Receive your first gram of Gold free by opening an account with Bullion Vault : Click here.

City correspondent for The Daily Reckoning in London, Adrian Ash is head of research at BullionVault.com – giving you direct access to investment gold, vaulted in Zurich, on $3 spreads and 0.8% dealing fees.

Please Note: This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it.




Sociétés Minières mentionnées : Signal |
<< Article précedent
Evaluer :moyenne :5 (3 votes)
>> Article suivant
Dernier commentaire publié pour cet article
Soyez le premier à donner votre avis
Ajouter votre commentaire
Top articles
Derniers Commentaires
La Russie de Poutine et les État...
04 marssilvera
"Ce que je reproche à l'article de Ch Sannat , c'est le cortège de jugements moraux. Il n'y a pas de morale en politique. Comparer la "moralité" de...
Nous avons interviewé le ministr...
05 marsStêr Arc'hant
Dekyus, en bon porte-parole sur ce coup des lecteurs de 24 h gold, ton discours fait l'unanimité ... Je n'aurais pas dit mieux. Le peuple ...
Ce qu’il faudra faire pour récup...
05 marsMAMrouni
Effectivement, si ça sera aussi facile pour récupérer son argent, pas de quoi s'inquiéter ! Mais dans la réalité, ça ne sera malheureuseme...
05 marsPierre70
Alors ce qui pose problème au Japon c'est des quantités d'eau contaminée par des éléments radioactifs. Pour la traiter il faudrait séparer l'eau de...
Oh, encore des dépenses indispen...
05 marsmerisier1
"d’après Pépy, le patron de la SNCF, il faut prévoir une perte de l’ordre de 200 millions d’euros par an au cours des premières années d’exploitat...
Alerte : première application de...
05 marsNobel2
Une "bad bank" n'est-elle pas, par définition, exempte de déposants?
La Russie de Poutine et les État...
05 marsMonrose0
C.Idem, Rien, absolument rien ne justifiait que De Gaulle ne fasse assassiner Darlan par Bonnier de la Chapelle en Décembre 1942, Rien ne justifiai...
La Russie de Poutine et les État...
05 marsc_idem
On est bien d'accord. Trahir nos intrets est evidemment une faute morale également.
Articles les plus commentésFavorisPlus...
Flux d'Actualités
Nouvelles des Sociétés Minières
TORC Oil & Gas Ltd. Announces 2014 Fourth Quarter and Year-End Financial & Operating Results
10,17 CA$+2,52%Trend Power :
Rapports Financiers
Altius Min.(Ag-Au-Co)ALS.TO
and Callinan combination to create a diversified mining royalty company leader
12,05 CA$-4,89%Trend Power :
Communiqués de Presse
Tahoe ResourcesTHO.TO
Declares Third Monthly Dividend For 2015
16,23 CA$+1,37%Trend Power :
Communiqués de Presse
Sprott Resources(Ag-Au-Co)SCP.TO
Resource Corp. Announces 2014 Annual Results
1,28 CA$+2,40%Trend Power :
Communiqués de Presse
Vista Gold(Cu-Le-Zn)VGZ.TO
. Announces 2014 Results and Provides Update on Recent Activities
0,47 CA$+11,90%Trend Power :
Communiqués de Presse
Major DrillingMDI.TO
Announces Third Quarter Results and Declares Dividend
6,43 CA$-0,16%Trend Power :
Communiqués de Presse
Releases 2014 Year End Results
1,32 CA$+14,78%Trend Power :
Rapports Financiers
Announces Filing of Preliminary Short Form Prospectus
0,22 CA$-13,46%Trend Power :
Communiqués de Presse
Cardero Res.(Ag-Au-Cu)CDU.TO
Announces Proposed Reverse Takeover of Artha Resources
0,03 CA$-14,29%Trend Power :
Communiqués de Presse
declares third monthly dividend payment for 2015
25,88 CA$+1,69%Trend Power :
Communiqués de Presse
Publication de commentaires terminée
Recevez le Market briefing de 24hGold
  • Les cours et les nouvelles des marchés des métaux précieux et des actions minières
  • Le decryptage de l’actualité par des auteurs
    du monde entier
  • Gratuit, quotidien et indispensable
Restez informé, inscrivez-vous maintenant !
* Votre email ne sera jamais diffusé.