4 ms·

If the Euro collapses, they want to be able to get other currencies with their gold. The gold in France is pretty useless for thet.

deleted 14y ago
[deleted]
flexie 14y ago
Let me make myself more clear. The article says that the Germans are planning on repatriating all the gold from France. But why is that a sign of distrust in the Euro, whereas bringing back gold from New York is not distrust in the dollar? Gold is gold, right? For me the whole thing about being able to get foreign currency quickly sounds less credible. Even if the Euro collapsed and the gold were in Germany they could get American dollars quickly, should the situation arise. Isn't is more a distrust in all the institutions and all the systems as such, in case one or more of the major currencies collapses?
- SyneRyder 14y ago
  Forbes skipped part of the original quote from the Deustche Bundesbank press release. The full quote is: "With this new storage plan, the Bundesbank is focusing on the two primary functions of the gold reserves: to build trust and confidence domestically, and the ability to exchange gold for foreign currencies at gold trading centres abroad within a short space of time." I read that as Germany strengthening domestic trust & confidence (via gold repatriation), at the expense of exchanging gold for foreign currencies: specifically, the US Dollar, since that's the only currency where gold reserves are being reduced (ie the amount of gold in Euro & Pound countries remains unchanged).
- bitcartel 14y ago
  The plan is to move 300 tonnes from NY to Germany over 7 years, so whatever the reason, they're not doing it in a hurry to meet any immediate crisis.
- rtpg 14y ago
  Because one good usage for having all that gold would be to back an independent currency (if they decide to pull out of the Euro). Although I'm not sure if investors care whether the gold is actually in Germany or not, it does send a signal.

deleted 14y ago

[deleted]

flexie 14y ago

Let me make myself more clear. The article says that the Germans are planning on repatriating all the gold from France. But why is that a sign of distrust in the Euro, whereas bringing back gold from New York is not distrust in the dollar? Gold is gold, right? For me the whole thing about being able to get foreign currency quickly sounds less credible. Even if the Euro collapsed and the gold were in Germany they could get American dollars quickly, should the situation arise. Isn't is more a distrust in all the institutions and all the systems as such, in case one or more of the major currencies collapses?

SyneRyder 14y ago
Forbes skipped part of the original quote from the Deustche Bundesbank press release. The full quote is: "With this new storage plan, the Bundesbank is focusing on the two primary functions of the gold reserves: to build trust and confidence domestically, and the ability to exchange gold for foreign currencies at gold trading centres abroad within a short space of time." I read that as Germany strengthening domestic trust & confidence (via gold repatriation), at the expense of exchanging gold for foreign currencies: specifically, the US Dollar, since that's the only currency where gold reserves are being reduced (ie the amount of gold in Euro & Pound countries remains unchanged).
bitcartel 14y ago
The plan is to move 300 tonnes from NY to Germany over 7 years, so whatever the reason, they're not doing it in a hurry to meet any immediate crisis.
rtpg 14y ago
Because one good usage for having all that gold would be to back an independent currency (if they decide to pull out of the Euro). Although I'm not sure if investors care whether the gold is actually in Germany or not, it does send a signal.