Slashed London Gold Holdings in Mystery Move
by Ambrose Evans-Pritchard
by Ambrose Evans-Pritchard: Greece
and the Melian Dialogue of Thucydides (obscure)
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 by German auditors.
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.
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.
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.
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
2012 Daily Telegraph