Friday, 21 November 2014

Koos Jansen: The Netherlands Has Repatriated 122.5t Gold From US.


  Koos Jansen reports that just before Swiss Gold Referendum The Dutch Central Bank has repatriated 122.5t of Gold from US. China has cut interest rates as well today - trading in Gold will be interesting.

Infographic: Everything You Need to Know About the Swiss Gold Referendum.

Eric Sprott: Global Gold Demand Is Overwhelming Supply.

  Nobody believes that Gold can make a true reversal here. Sentiments are at total extreme. We have the capitulation in gold miners and, maybe, this is the sign of the end of this gold bear market.

Koos Jansen:

The Netherlands Has Repatriated 122.5t Gold From US

The Dutch central bank, De Nederlandsche Bank (DNB), has repatriated in utmost secret 122.5 tonnes of gold from the Federal Reserve Bank of New York (FRBNY) to its vaults in Amsterdam, The Netherlands, according to a press release from DNB published today (November 21).
DNB states it has changed allocation policy from 11 % in Amsterdam, 51 % at the FRBNY, 20 % in Canada and 18 % at the Bank Of England (BOE); to 31 % in Amsterdam, 31 % at the FRBNY, 20 % in Canada and 18 % at the BOE. According to the World Gold Council’s latest data DNB has 612.5 tonnes in official gold reserves.
The Netherlands Official Gold Reserves Allocation
Source: the WGC, DNB
Translation DNB press release:

DNB Adjusts Gold Reserves Allocation Policy

Press release, date November 21, 2014.
De Nederlandsche Bank has adjusted its allocation policy for its gold reserves. To achieve a more balanced distribution of gold over the various locationsDNB has shipped gold from the US to the Netherlands.
In the old situation 11% of the gold reserves were located in the Netherlands51% in the USwith the remainder in Canada (20%) and the UK (18%)The location distribution according to the revised policy is as follows: 31% in Amsterdam, 31in New York, while the percentages for Ottawa and London with 20 and 18  % remain unchanged.
This adjustment of DNB joins other central banks that store a larger share of their gold reserves in their own country. Next to a more balanced distribution of the gold reserves over the different locations, this can also contribute to more trust towards the public.
The distribution of gold stocks over various locations is often subjected to change. For example, in the period after the Second World War until the early seventies DNB added a lot to its gold reserves - underBretton Woods - especially in New York. Since then, more mutations occurredThe main reasons for this have been the gold sales over the past decades and the closure of the vaults of the Reserve Bank of Australia, which made DNB ship gold from Australia to the UK in 2000. 
A few weeks ago I heard a rumor that the Netherlands were repatriating some of their official gold reserves from the FRBNY. From one of my sources I even heard which security logistics company is shipping the metal, but I was kindly asked to not share this company’s name.
Last week I was approached by a financial journalist, Theo Besteman, from the biggest newspaper in The Netherlands,De Telegraaf. He asked me if I knew anything about the repatriation of Dutch gold from the FRBNY as he heard from several sources DNB was following the German central bank in repatriating gold (for the ones that are under the assumption Germany has ceased its repatriation program, please read this). I told him I heard some rumors about it and that the source was one of the big security logistics companies. He wanted to know which one, but I couldn’t tell him that. Apparently the rumors were true and Besteman did a good job finding out what was happening. The front page of De Telegraaf today: Gold Shipped In Utmost Secret.
Screen Shot 2014-11-21 at 9.17.12 AM
De Telegraaf reports that for years there have been doubts at the DNB if the Dutch gold was still in New York. After a very secret and almost military operation DNB has shipped gold from Manhattan to Amsterdam, to bring about a more balanced allocation of its gold reserves and give the Dutch citizens more confidence by storing the gold on ownsoil to guide the country, if necessary, through a following major crisis. In the previous weeks many armored trucks were seen at the DNB in Amsterdam. Quote from De Telegraaf:
It is no longer wise to keep half of our gold in one part of the world,” said a DNB spokesman on themassive operation of shipping gold bars to Amsterdam. “Maybe that was desirable during the Cold War,not now.”

Global Consequences

The impact of the Dutch gold repatriation can be huge. First of all, because it underlines more and more countries are getting nervous about their gold reserves stored in the US. Venezuela repatriated most of its reserves from abroad in 2012, the year Germany also announced a repatriation schedule from the US and France. While Germany settled with the US to ship 300 tonnes spread over 8 years, the Dutch set a new trend to insist on immediate delivery. If more counties will follow there can be a global run on gold.
Recently the Swiss people also got nervous about the Swiss National Bank (SNB) its gold policy and asked for a referendum to store all of the official gold reserves on Swiss soil. The Swiss referendum is held on November 30 and will most likely be influenced by the 123 tonnes of gold repatriated by The Netherlands.