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Germany brings home its gold

Thursday, February 09, 2017 - 01:46

Germany's central bank is bringing home gold reserves stored in places like New York and Paris faster than planned, as confidence in the euro ebbs even in the heart of the currency bloc after a decade of a sluggish economy. David Pollard reports.

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Just the sight of it triggers all kinds of conspiracy theories. All the more so now that Germany has announced it'll bring home some of its gold, much earlier than planned. It holds the second biggest bullion reserve in the world - 3378 tonnes. It was stashed away in safe havens like Paris and New York during the Cold War, out of Moscow's reach. (SOUNDBITE) (German) BUNDESBANK BOARD MEMBER CARL-LUDWIG THIELE, SAYING: "Our stockpiles were accumulated abroad, not here, partly during the economic wonder years,. It was stored on-site abroad - it was at no time transferred from Germany." The move is happening three years ahead of schedule. Prompting some to question Germany's confidence in the euro. There's speculation the gold could be needed to back a new deutschmark, should the euro zone break up SOT JAN HARVEY, REUTERS SENIOR PRECIOUS METALS CORRESPONDENT "It's very difficult to talk specifically about how the Bundesbank is going to handle these pressures. But yes certainly the euro zone has come under a lot of financial pressure from financial market turmoil and currency markets. So it's possible that that may have fed into the decision making process to some extent." Only half of Germany's gold will be moved though The rest will be kept in the key gold-trading markets of London and New York The Bundesbank insisting that Trump was not a factor in speeding up the schedule. but the relocation hasn't been cheap. So far it's cost nearly 7 million euros. Compared to the 120 billion euros of gold it holds, it's clearly something Germany can afford.

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Germany brings home its gold

Thursday, February 09, 2017 - 01:46