Gold Going Back to Gertrude: Bunsdesbank repatriates bullion from London and New York

Hopefully this won't be what the Germans find...

You will here all sorts of excuses as to why this is just tactical move to reduce storage costs, etc...but the reality is we're seeing an acceleration of the collapse of the fiat currency system. And the biggest fiats of all are the Dollar and Euro.

Just make sure it ain't tin foiled Tungsten...

The Germans are not stupid: they have a low profile but exceptionally capable intelligence service in the BND, and you can bet anything that they have been saying for a while that German reserves are not safe, given how desperate the US may become when its sovereign debt becomes as credible as Argentina's. And London, well, let's just say that the Germans think that a short trip across the channel won't hurt anyone honest and truthful.

I am very sure the Germans will get every ounce of gold they expect: if they don't then the consequences would be cataclysmic for the world paper bullion markets: if it can be shown that the long whispered rumours of paper (unallocated) gold being based on non existent real stocks - so long the domain of conspiracy theorists - then it will cause the price of physical bullion to skyrocket and that of the paper market to implode.

And the currency markets would not escape: as I wrote in an earlier piece, risk is something that may be managed individually well, but if many events occur at the same time: Germans claiming some gold bars were tungsten, the US not able to agree to a debt ceiling increase, more bad growth numbers...what would happen?

Interesting times...