ibtimes.com / BY Paul A. Ebeling, Jnr. / October 08 2012 4:01 AM
It is claimed that somewhere deep in the vaults of western central banks are huge stacks of physical Gold bars.
This Gold bullion are deemed to be part of their respective foreign currency reserves, which include all the usual fiat (paper) currencies like the USD the GBP, the JPY and the EUR.
The Western governments central banks; United States, United Kingdom, Japan, Switzerland, Eurozone and the International Monetary Fund (IMF) are believed to hold an 23,349 tons of physical Gold in their respective reserves, representing more than $1.3-T at today’s Gold price.
Other than the suggested tonnage (held therein) little is actually known about the Gold that makes up the stockpiles.
Western central banks disclose very little about where the Gold is stored, in what form, or how much of the Gold reserves are used for other purposes. The public is continuously assured that it is all there, again there are no real details beyond the references in various financial reserve reports about the bank’s Gold holdings.
A decade ago, likely very few people cared what central banks did with their Gold, as Gold suffered a 20 yr Bear cycle and did not create excitement at 255 oz.
So, then it made sense for Western governments to lend (lease) out, or in the case of Canada to just sell it, their Gold reserves in order to generate some interest income from their holdings.
That is what many central banks did from the late 1980’s through to the late 2000’s. Now, the times have changed, and it does matter what the banks are doing with their reserves, and where the reserves are held.
Thanks to BrotherJohnF