gold grabs: Trump's rumored grab for Fort Knox's bullion
Could it be that Germany's gold reserves are being accessed by Donald Trump in U.S. banks?
Stirring speculation, Trump and advisor Elon Musk have noted the potential of Biden's administration moving gold reserves from Fort Knox, boosting concerns over Trump potentially seizing US-stored gold during trade disputes.
Gold reserves of Germany on the brink
In a statement to boerse-online.de, a German Federal Bank spokesperson revealed Germany held 3,352 tons of gold at the year's turn-over, with 1,710 tons residing in German vaults, while the US Federal Reserve safeguarded 1,236 tons of the yellow metal for Germany despite Germany being a former adversary [1]. Presently valued around 113 billion euros, England also has a watchful eye on its 405 tons of German gold [2].
The geographical distribution of gold reserves comes down to historical circumstances like post-war trade surpluses being settled with gold and strategic locations being detached from hostile reach [3]. Following a return of substantial gold from France between 2013-2017, the Bundesbank justifies its existing "storage location concept" to ensure security and tradability [2]. After all, essential trading markets for gold and currencies are New York and London [3].
Bundesbank on Gold Inspections
Gold shipments are seldom sent, with gold exchanges involving unpacking and relocating "German" gold within host countries like the US and Britain during such transactions [3]. The Bundesbank has reported regular inspections of their foreign reserves by their own teams, disclosing no limitations or obstacles from facilities like the Fed New York or the Bank of England [3].
Potential intervention by Trump administration
International law, in principle, protects currency reserves from seizure by enforcement authorities of the host country [4]. Bundesbank President Joachim Nagel voiced confidence in the Fed New York's trustworthiness in May 2022 [4]. However, Trump has previously demonstrated an unreliable and disregardful approach concerning international law while demanding access to the Fed [4].
Securing German reserves amid growing tension
The incoming German government will likely grapple with ensuring German currency reserves are kept safe from unauthorized access while preserving diplomatic ties with the US [5]. Moving forward, challenges and uncertainties surround these gold reserves and the increasingly complicated relations with the US.
References:
- boerse-online.de
- handelsblatt.com
- financial-times.com
- reuters.com
- dw.com
- Despite Germany having a substantial amount of gold stored in US and British bunkers, shipments are rarely sent, with gold exchanges involving relocating the reserves within the host countries.
- The Bundesbank, Germany's central bank, has reported regular inspections of their foreign reserves by their own teams, but concerns remain about potential intervention by the Trump administration, known for disregarding international law.
- With the incoming German government likely facing the challenge of securing Germany's currency reserves while maintaining diplomatic ties with the US, the geographical distribution of gold reserves, influenced by historical circumstances, plays a crucial role in this delicate politics.
- In the context of war-and-conflicts, policy-and-legislation, and crime-and-justice, general news recently reported that the gold reserves of Germany are on the brink, with England watching closely over its 405 tons of German gold.
- In order to prevent seizures of the valuable gold reserves, the Federal Bank of Germany has put in place a "storage location concept" to ensure security and tradability, even as they still have a significant portion of their gold stored in the US Federal Reserve.
