Germany’s Bundesbank is to bring home almost 700 tonnes of gold, worth 27 billion euros, from vaults in New York and Paris.
Germany has the second highest gold reserves in the world, after the United States, but keeps just a a third of it on home soil. The majority is stored in vaults in Paris, New York and London.
The bars were originally squirreled away to the west during the Cold War to keep them safe in case of Soviet invasion.
Central banks often store gold abroad as a ready source of currency in case of a time of financial crisis.
The central bank will now be withdrawing all of its gold from Paris – 374 tons in all – as France also uses the euro. It will also take 300 tons out of New York.
It will not touch its reserves in London, although the Bundesbank did already ship around 850 tons of gold from London to Frankfurt between 1998 and 2001.
Despite having such a large amount of gold – 3,396 metric tons worth around 150 billion euros – Germany only started building up its reserves in 1951.
Using income from taxes it paid 2.5 million deutschmarks for 529 kilograms in October of that year and has built it up gradually since then through taxes and accepting gold as payment on trade surpluses.
Shipping such a large amount of the precious metal will be a great security challenge. To avoid losing any in a heist there is a top-secret plan to move the gold to the Bundesbank in in Germany’s financial centre over the next eight years.
Carl-Ludwig Thiele of Bundesbank declined to say how the transfer would be accomplished or to estimate the cost. What he said though, was that the Bundesbank had plenty of experience in the field of moving large sums of money.
Copyright © 2014 euronewsMore about:
- 1Putin takes control of Russia’s defence industries and calls for new weapons
- 2Watch: Angry mob throw Ukraine MP into rubbish bin
- 3Russia: new EU sanctions look ‘strange’ says Putin
- 4Young American sentenced to six-years hard labour in North Korea
- 5Family tragedy shocks America after father kills five children
- 1Podemos: Spanish indignation in Brussels’ corridors of power | euronews, reporter
- 2Israel announces it will seize 400 acres in West Bank | euronews, world news
- 3Japan sounds bluefin warning, calls for 50% catch cut | euronews, world news
- 4Hoverbike on the horizon | euronews, hi-tech
- 5China executes eight Muslims convicted of terrorism | euronews, world news
- 63D printing: a driving force in design and engineering | euronews, hi-tech
- 7Watch: Angry mob throw Ukraine MP into rubbish bin | euronews, world news
- 8Ukraine accuses Russian aid convoy of stealing factory equipment | euronews, world news
- 9Young Yazidi girl escapes Islamic State kidnappers | euronews, world news
- 10New car offers freedom for disabled drivers | euronews, hi-tech
- 11#ن: How an Arabic letter was reclaimed to support Iraq’s persecuted Christians | euronews, world news
- 12EU leaders name Donald Tusk European Council president | euronews, world news
- 13The business benefits of EU chemical regulation | euronews, business planet
- 14Turkish ferry makes high-speed final landing | euronews, no comment
- 15Risk of fresh ash cloud threatens European air travel | euronews, world news
- 16Canada sends hilarious barb to Russia over Ukraine ‘incursions’ | euronews, world news
- 17Iceland warns Europe’s airlines of possible volcanic eruption | euronews, world news
- 18Thousands of Catalans call for choice on split from Spain | euronews, world news
- 19Iceland puts on a show as two of its volcanoes spew out lava | euronews, world news
- 20Marine Le Pen criticises France’s decision to halt Mistral warship sale to Russia | euronews, world news
Wires > News
- 15:18 CET Former Ivory Coast president backs Ouattara for 2015 election
- 15:04 CET Bissau president picks close confidant as army chief
- 14:49 CET Russia, Egypt seal preliminary arms deal worth $3.5 billion -…
- 14:32 CET Death toll from Nigeria church building collapse at 70 – emergency…
- 14:08 CET As migrants flee eastern Cuba, a town mourns those lost at sea
- 13:57 CET Gunmen seize Lebanese soldier in border town – source
- 13:48 CET Cyprus leaders agree to ratchet up slow moving peace talks – U.N.
- 13:43 CET Sweden Democrats say could support alternative to centre-left…