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 Strategies & Market Trends : The Financial Collapse of 2001 and Beyond

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To: carranza2 who wrote (90209)5/14/2012 9:57:42 PM
From: TobagoJackRead Replies (1) of 101237
 
there appears to be fear in the red misty air when such talk as below is in main stream news

uk.reuters.com 

Bundesbank confident in value of its gold reserves overseas
FRANKFURT | Mon May 14, 2012 8:26pm BST

(Reuters) - Germany's Bundesbank said on Monday it had complete confidence in valuations of its gold holdings at other central banks after a newspaper reported that an official body had cast doubt on the accuracy in the accounting of the reserves.

Germany's central bank has the world's second-largest holdings of gold after the United States, or about 3,400 tonnes of gold valued at nearly 140 billion euros, according to the Bundesbank.

Like many central banks, the Bundesbank keeps part of its reserves in specialist vaults at foreign central banks and says some of its gold is held at the Federal Reserve Bank of New York, the Banque de France and the Bank of England.

Germany's mass-selling Bild daily reported on Monday the German Federal Court of Auditors, which keeps an eye on the government's financial management, had issued a report which the paper said showed there was "insufficient accuracy in the accounting of the gold reserves, which are partly parked abroad".

The parliament's budget committee - one of the most powerful committees in parliament - had then requested to see the report, the newspaper said.

The issue has the potential to fuel tension between the Bundesbank and the German government at a time when both are trying to focus on tackling the euro zone debt crisis.

The Bundesbank released a statement saying it had complete confidence in the integrity of the central banks where the gold is held.

"From these central banks, the German Bundesbank annually gets confirmation of the gold holdings in troy ounces as a basis for its accounting," the Bundesbank said in a statement.

"There is no doubt about the integrity and the reputation of these foreign central banks where the gold is held," it said.

Central banks keep some of their gold at foreign banks for security reasons and because they often acquire gold overseas as part of their currency hedging.

(Reporting By Eva Kuehnen; Editing by Susan Fenton)
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