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Germany withdrew two thirds of its vast holdings of
gold from Bank of England vaults shortly after the launch of the euro more
than a decade ago, according to a confidential report that emerged on Wednesday.
Germany has 3,396 tons of gold worth
€143bn (£116bn), the world's second-largest holding after the US.
Nearly all of it was shifted to vaults abroad during
the Cold War in case of a Soviet attack. Photo: ALAMY
Bundesbank slashed
London gold holdings in mystery move
By Ambrose Evans-Pritchard, International
business editor
The revelation came as Germany's budget watchdog demanded an on-site probe of
the country's remaining gold
reserves in London, Paris, and New York to verify whether the metal really
exists.
The country has 3,396 tons of gold worth
€143bn (£116bn), the world's second-largest holding after the US.
Nearly all of it was shifted to vaults abroad during the Cold War in case of
a Soviet attack.
Roughly 66pc is held at the New York Federal
Reserve, 21pc at the Bank of England, and 8pc at the Bank of France. The
German Court of Auditors told legislators in a redacted report that the gold
had "never been verified physically" and ordered the Bundesbank to secure access to the storage sites.
It called for repatriation of 150 tons over the next
three years to test the quality and weight of the gold bars. It said
Frankfurt has no register of numbered gold bars.
The report also claimed that the Bundesbank
had slashed its holdings in London from 1,440 tons to 500 tons in 2000 and
2001, allegedly because storage costs were too high. The metal was flown to
Frankfurt by air freight.
The revelation has baffled gold veterans. The shift
came as the euro was at its weakest, slumping to $0.84 against the dollar.
But it also came as the Bank of England was selling off most of Britain's
gold reserves – at market lows – on orders from Gordon Brown.
Source and rest of the article : Bundesbank slashed London gold holdings in
mystery move - Telegraph
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