On January 16, 2013 the #deutsche bundesbank announced that it is going to repatriate 375 tonnes of gold, currently located in vaults in Paris and New York, to its own vaults in Germany.
The purpose is to store #half of germany’s gold reserves in its own vaults in Germany.
The following table shows the current and the envisaged future allocation of Germany’s gold reserves across the various locations:
|Frankfurt am Main||31%||50%|
When I read a story like this, the greatness of it comes directly to mind.
Apart from the declaration of the Deutsche Bundesbank, that with this new storage plan, they focus to build more trust and confidence domestically, but still hold the possibility to exchange gold for #foreign #currency with gold trading centers abroad within a short space of #time,the size of the physical operation is enormous.
To see the value of this operation/transaction in perspective.
The today´s value of 375 tonnes of gold is about 36 billion #dollar.
For that amount you can have:
- 180 fully loaded oil tankers. The biggest oil tanker can carry about 2 million barrels of oil, with a total value about 180 million dollar.
- 4 of the most expensive ship that ever is going to be built. The Gerald R. Ford class- super carrier will #cost about 10 billion dollar.
- 5 of the most expensive plains ever built, the B2 Spirit stealth bomber costs about 7 billion dollar.
- 13 of the most expensive buildings ever built, the Wynn Las Vegas hotel and casino did cost around 2,7 billion dollar.
The strange thing about #money is that the value it presents is fully based on trust. So for example if the US is buying a 100 million dollar ship, it can simple put a few numbers in a computer and it is paid.
In this case it cannot be done by putting numbers in a computer! No, the 375 tonnes of gold actually have to be transported, shipped or flown in from Paris and New York to Germany.
#link to the announcement of the Deutsche Bundesbank.
Feel free to share your views below in the comments area.