Germany repatriates gold at faster pace

In the wake of political uncertainties in Europe, the largest economy in the area is repatriating its gold at a much faster pace. As the prospect of a win by the National Front leader Marine Le Pen becomes a reality, Germany is emptying the vaults of the Bank of France of its gold. Germany stored 98 percent of its gold out of the country at the height of the cold war in order to avoid them get confiscated by Moscow. Since the Eurozone debt crisis in 2011, there has been a loud call from within Germany to bring back the gold; the value of which is around $130 billion. Germany is the second largest holder of the yellow metal, after the United States. The country has already repatriated large chunks of the yellow metal stashed outside the country.

Having already moved 583 tons of gold out of New York and Paris, the Bundesbank plans to have half its gold in Frankfurt by the end of 2017, years ahead of its 2020 schedule, with the rest split between the Federal Reserve Bank of New York and the Bank of England.

Previously it has moved 931 tons back in 2000 before this urgency triggered in after more than a decade. Once the current relocation is complete, the Bundesbank will have 1,236 tons in New York, 432 tons in London and the rest in Frankfurt. The current move involves 300 tons from New York and 374 tons from Paris.

Bundesbank official said that the central bank has faith in the Federal Reserve despite Donald Trump’s election and in Bank of England (BoE) despite Brexit.