Análisis 07-08-2017

Germany looks forward to recovering US precious metal

One of the consequences of the Second World War for Germany was the loss of its entire gold reserve. However, in the early 1950s, the Teutonic economy began to grow at an accelerated pace and to receive more and more gold from growing exports.

As a safety measure, all the precious metal received by Germany was stored abroad by the central banks of the United States, France and the United Kingdom. However, since the end of the Cold War, Berlin has been constantly working to get the total transfer of its gold reserves to the national territory.

Several German specialists stressed the need to recover the precious metal in the context of the current global economic instability and analyzed the difficulties that the country has encountered throughout this process.

Peter Boehringer, an investment adviser and president of the German Society of Precious Metals, has launched the "Repatriate Our Gold" campaign, which aims to bring back the German reserve of this metal to the national territory, since gold belonging to Germany never Has been in the country.

The campaign, begun in 2011, has already managed to bring more than half of Germany's gold reserves within its borders. In the near future, several tons will arrive from the French national bank. However, according to Boehringer, his country still needs to recover 1,700 tonnes of gold.

The Boehringer initiative has been supported by Folker Hellmeyer, the chief economist of bank Bremer Landesbank, who considered gold more resilient to the impact of a potential economic crisis than other currencies.

In addition, the analyst stressed the importance of the government to exercise physical control over its gold within its own borders, and not entrust this task to third parties. In particular, Hellmeyer highlighted the fragility of the Western financial system and the Federal Reserve - the US central bank - where thousands of tons of German gold are found.

Another expert in the metal market, Dimitri Speck has supported the initiative of recovery of the Teutonic gold from the beginning. For Speck, "gold is an ideal reserve and, for that reason, must be constantly stored within the country and be always accessible."

Philip Klinkmüller, co-founder of Hopf-Klinkmüller Capital Management - a Teutonic company dedicated to investment advice - said that there is no other viable alternative to the question of national gold:

There are theories that the US has recast Germanic gold and even that the Fed's safes are completely empty. For its part, Boehringer said that Germany has no means to confirm or refute such theories, but that "does not matter."

"Even if the original ingots had been melted, the US central bank can buy gold. If they no longer own the original, then they simply have to buy it in the markets and transfer it to the Bundesbank," Boehringer concluded.