Trust But Verify, Germany to Move Some Gold Back Home
Germany’s Bundesbank is planning on relocating some of its gold in New York (New York Federal Reserve) and Paris (Bank of France) back home. Germany is the number two holder of gold reserves. Only the United States holds more gold.
The Bundesbank plans to move a small portion of its gold reserves back to Germany, some people see it as a sign of a central bank trust breakdown. Debt limit standoffs, quantitative easing, and social unrest in some regions of Europe, make a strong case for repatriation. The printing of money and balance sheet growth of central banks have made some governments uneasy.
During the Cold War, Germany moved the bulk of its gold reserves abroad in case of an attack from the Soviet Union.