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.
- 1euronews live TV - News | euronews : the latest international news as video on demand
- 2Greek debt crisis is “absolute supremacy of capital over humans”
- 3[Live updates] NGO flotilla bids to break Israeli blockade of Gaza
- 4[LIVE UPDATES] Greek debt deadline looms
- 5Large Hadron Collider ready to embark on an unprecedented voyage of discovery
- 6Istanbul Gay pride quashed by riot police, rubber bullets and water cannon
- 7[LIVE UPDATES] France: man decapitated, several wounded in chemical plant attack
- 8Israel prepares to repel boarders as ‘Freedom Flotilla 3’ tries to run Gaza blockade
- 9Greek debt summit – Live updates
- 10Seven reasons why Yanis Varoufakis is now a political legend
- 11‘Distractingly sexy’ scientists hit back in lab chemistry polemic
- 12Greece votes ‘No’ in overwhelming rejection of bailout proposals
- 13NewsWires : euronews : the latest international news as video on demand
- 14Greek debt: who will pay if Greece fails?
- 15Summit up in Brussels as Greek proposals give food for thought and rumours fly
- 16Battle of Waterloo, live-tweeting 200 years on
- 17Greek PM faces day of crucial bailout talks in Brussels
- 18Spain’s first case of diphtheria in 30 years: parents of six-year-old ‘oppose vaccines’
- 19Citizens take power in Spain’s largest cities as a political revolution sweeps the country
- 20Italy discovers biggest illegal waste dump in Europe
Latest world news
‘Last chance’ meeting for Greece as euro zone creditors gather
Tsakalotos reveals notes but no new proposals at Eurogroup
Greek people worry about their savings and their country’s future
Al Shabaab kills quarry workers in Kenya gun attack
Migrant dies in Channel Tunnel after jumping on UK-bound train
Wires > News
- 19:29 CET Six powers and Iran to continue nuclear talks past deadline
- 19:22 CET Sierra Leone urged to ban FGM after backing women’s rights treaty
- 19:21 CET ‘Real risk’ of famine in Yemen as death toll passes 3,000
- 19:09 CET Israel says Islamic State’s Sinai assault aimed to help Hamas get…
- 18:40 CET Suspect in Charleston church shooting indicted on 9 murder counts
- 17:15 CET Bomb kills dozens in north Nigeria, gunmen open fire on crowd
- 17:13 CET Pakistan kills leader of anti-Shi’ite militants in southwest
- 17:10 CET U.S. only training 60 Syrian fighters, far below expectations