Germany wants its gold back. Local newspapers are reporting that the Bundesbank, the central bank of Germany, is planning to deposit more gold reserves at home in Frankurt, while withdrawing many of its precious metal held in facilities around the world.
In total, the Bundesbank maintains approximately $178 billion worth of gold, but less than one-third is stored in Germany. The remaining sum of gold is stored at the United States Federal Reserve, the Bank of England and the Banque de France.
The Handelsblatt newspaper’s sources noted Tuesday that the central bank will take part of its reserves back from the Fed, while obtaining the remaining gold in France. Other German newspapers and financial experts are opining that this could lead to a chain reaction of other nations repatriating gold stored in London, New York and/or Paris.
Officials expect the the Bundesbank to release further details of its plans on Wednesday.
This isn’t the first time that Germany’s gold has made worldwide headlines. Digital Journal reported in late October that the German government ordered its central bank to perform an audit of its reserves at the Fed. Apparently it was confirmed that Germany hasn’t conducted an audit of its physical assets in bullion in several decades.
Gold also made news Monday when it was reported that some in the United States were considering selling its 261.5 million ounces of gold held in Fort Knox, Kentucky. Treasury Secretary Timothy Geithner warned against this in a letter sent to the Congressional leadership last month.