The world is moving step by step towards a de facto Gold Standard, without any meetings of G20 leaders to announce the idea or bless the project. Some readers will already have seen the GFMS Gold Survey for 2012 which reported that central banks around the world bought more bullion last year in terms of tonnage than at any time in almost half a century. They added a net 536 tonnes in 2012 as they diversified fresh reserves away from the four fiat suspects: dollar, euro, sterling, and yen. The Washington Accord, where Britain, Spain, Holland, Switzerland, and others sold a chunk of their gold each year, already seems another era – the Gordon Brown era, you might call it. That was the illusionary period when investors citeste si comenteaza …

Countries no longer trust the Federal Reserve, they have begun to demand that their gold that is stored in the Fed’s vaults in NY be repatriated. Venezuela repatriated 160 tons recently from NY and the Bank of England. Switzerland, and the Netherlands are also demanding their gold back. Germany went to inspect their gold that the Feds hold in NY. The Feds refused to let the Germans see it, citing security issues. The security of the Feds relies on people not wanting their gold back; people suspect the gold has been looted by the Feds and that it is not there anymore. I imagine Germany will now make a formal request for all of its 3000+ tons back. Very sensible.

Source: Stuart Wilde