St Andrew Goldfields Ord STADF

RE:Germany repatriating some of its gold holdings

[fergus2]

I'm sure most of you that post on Stockhouse must receive the Sprott letters in your e-mail but I will post his latest letter just in case you haven't read it. 

As mentioned  earlier, Germany is planning to repatriate 330 tonnesof gold  from the Federal Reserve Bank in New York. However the Fed tells the Germans that it will take 71/2 years to effect the transaction.  I'm wondering if the German gold is somehow at the bottom of the pile for it to take this long to return it. (Just kidding).

Do you remember the libor problems back in 09 and how banks were so mistrustful of other banks' creditworthyness that they wouldn't lend to each other except for higher and higher rates? Well maybe now, some banks are wanting  to have their gold under their own lock and key instead of parked at the Federal Reserve not knowing wha'ts happening to it in New York. And who knows?   By now maybe it has been sold 3 or 4 times over, - after all, who is to say??  


It sort of has the look and feel of a run on the bank but this time  with the doors being closed for 71/2 years.I suppose it is possible to have a falling out amongst Reserve Banks at least between the Bundesbank and the Fed, particularly when one knows there is a  Shumpeter school of economics  in Germany that is at some variance with the Milton Freedman style of economics.

Enough said. Eric Sprotts crew is far more articulate than I to tell this story. I will place the letter in my next post.