Gold

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Germany is repatriating its gold reserves from the New York Federal Reserve. This decision has created a frenzy in the gold market. But that is just the tip of the iceberg.

According to the NY Fed, there are (2012) approximately 530,000 gold bars, with a combined weight of circa 6,700 metric tonnes stashed away in the Fed's Lower Manhattan vaults.

These are official figures which are impossible to verify.

The gold is stored in the fifth sub-floor of the New York Fed building on Liberty Street. The vaults on the bedrock of Manhattan Island are located 80 feet below street level.

Each of the 530,000 gold bars weighs 400 troy ounces, or about 12.44kg.

At today's market value of approximately US$1700 dollars a troy ounce, the New York Fed has within its vaults a multi-billion dollar treasure trove.

The 400-ounce gold bar is quoted at $677,640.

A 1kg gold bar is quoted at about $55,000. (purchase price)

Each metric tonne of gold is worth approximately $55 million.

The total value of the New York Federal Reserve's gold bullion trove of 6700 tonnes is a staggering $368.5 billion.

But according to the New York Federal Reserve: "We do not own the gold. We are mere custodians."



According to the NY Federal Reserve:

“Much of the gold in the vault arrived during and after World War II as many countries wanted to store their gold reserves in a safe location. Holdings in the gold vault continued to increase and peaked in 1973, shortly after the United States suspended convertibility of dollars into gold for foreign governments.”

http://rt.com/news/gold-manhattan-new-york-594/

The reaction on the part of the US was to cut the tie between the dollar and convertibility. This again raises the question of does the USA have fungible gold to the degree that is claimed without 3rd party audits or any viewing publicly whatsoever.

According to the Fed, there are 122 separate gold accounts mainly held by the central banks of foreign countries, as well as a few organizations including the International Monetary Fund.

Most of the 122 accounts are held by the central banks of sovereign countries, which in addition to their gold accounts have statutory agreements with the NY Federal Reserve.

Instead of gold bullion, national central banks (with the exception of the US) hold US dollar paper instruments as ‘reserves’. Gold reserves under national jurisdiction are central to establishing sovereignty in monetary policy, without depending on the Federal Reserve which holds a nation's gold bullion in safe-keeping in its Lower Manhattan vault.

Follow the example of Germany. Repatriate your gold.