674 Tonnes of gold bars being kept in New York and Paris by the German Central Bank is to return to Germany by 2020. The gold, worth $36 Billion USD, was kept in foreign nations to quickly buy currency in times of crisis. The method of keeping gold in foreign banks, has been used by several notable nations. The German Central Bank stated also that the gold reserves in the Bank of England will not be touched, until concern or need to remove them arises. The bars that are returning however, were taken out of Germany due to the possibility of a Cold War Soviet invasion, that did not occur. The gold being taken out of Paris, is the remainder of the gold being kept in Paris for the German Central Bank.The reason for this, is due to the fact that both nations use the Euro, and seem to have no longer a need for the gold to sit in a French vault. The Germans will still keep some gold (37% of all gold reserves) in New York as a precaution against an economic crisis. The 37% may seem like a large number. It should, as Germany keeps less than 30%of its gold reserves in Germany. The gold being kept in foreign vault has caused much concern with the German people, economists, and even the German audit office. There have been suspicions that some of the gold isn’t real, and that the German and foreign authorities alike haven’t even confirmed their authentication. The German government has also come under fore for not keeping proper records and tracking of the bars, further provoking uncertainty.
So, will the German Central Bank’s decision to move the bars be a successful gander in their current economic state? Or will it all be for absolutely no gain, and only loss?