Mexico to audit its gold holdings at the Bank of England

The Voice of Russia ^ | February 28, 2013

[JustTheTruth]

Chavez of Venezuela was the smart one to ask for his gold back first. Germany asked for a fraction of its gold back and was told it would be sent in dribbles over time from now through 2020.

Let's just hope that Mexico ensures that the gold being audited has not been leased out and is not encumbered or pledged (or hypothecated) in any way.

Those countries that are too slow in moving to repatriate their gold reserves will instead end up holding rotting, devaluing currencies instead of gold: sound money that can't be created in endless amounts out of thin air!

[allendale]

The EU and the IMF sold huge amounts of gold to China to fund their bailouts and liquidity problems. The Chinese do not take warehouse slips but insist on physical delivery. The Mexicans and others are right to be concerned if “their” gold is still in European repositories.

[batterycommander]

This repatriation of the gold that nations claim will soon lead to the unwinding of the world’s currencies. The value of gold is a myth, tied up in old claims that have never been resolved. This final resolution will no doubt eventually lead to war.

[Figment]

That would be better than gold plated tungsten in what way?

[Jet Jaguar]

Goldbug ping.

[Vince Ferrer]

Just because it is there doesn’t mean it hasn’t been sold to three or four other parties, or leased to a fourth. If Mexico wants its gold, it needs to build a vault in Mexico and move it there.

[SpaceBar]

The Spanish Empire is the textbook example of why hoarding gold isn’t a ticket to long term prosperity for a nation. The true wealth of a nation isn’t even “natural resources”, it ultimately lies in the quality and nature of its people.

[dennisw]

very nice and people affirming....but a nations natural resources come in closed second....just ask Norway. Germany has very productive people and runs a trade surplus, and at the same time are very practical about gold. their central bank is number four in gold reserves and holdings

[Zakeet]

There has already been a physical inspection with the counterparty that has the gold under its custody in recent weeks. The question is not whether something is really down there, but rather how many times that the something has been sold, leased, hypothecated and rehypothecated ... and to whom ... or in other words, who actually owns the stuff ... and nobody will ever know the answer to that question until the barbarous relic is actually repatriated. Until then, I kind of enjoy watching the idiots squirm as they try to reassure the ignorant peasants that all is well.

[The Working Man]

There has already been a physical inspection with the counterparty that has the gold under its custody in recent weeks. The question is not whether something is really down there, but rather how many times that the something has been sold, leased, hypothecated and rehypothecated ... and to whom ... or in other words, who actually owns the stuff ... and nobody will ever know the answer to that question until the barbarous relic is actually repatriated. Until then, I kind of enjoy watching the idiots squirm as they try to reassure the ignorant peasants that all is well.

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I see... Much like the CDO’s using Mortgage backed securities? The end result I suppose is whoever has physical possession is the owner?

[DH]

Germany asked for a fraction of its gold back and was told it would be sent in dribbles over time from now through 2020.

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I hear alarm bells going off!

If it is to be sent in “dribbles” that clearly means that (1) the English have used it for collateral for other loans or (2) that they don’t have all of it.

[RegulatorCountry]

Now, just why would the Bank Of England want to trot out the Old Gal and Himself for a photo op pertaining to this particular issue, lol? Their role is ceremonial.

The word “hypothecated” is interesting, too. Hypothetical. No real heft, largely ... ceremonial. Still pretty expensive though. Just like the royals.

Somebody has a mean sense of humor.

[RegulatorCountry]

Not the English.

Us.

[jiggyboy]

The highest-stake game of musical chairs in the history of civilization has begun.

[dennisw]

That’s Queenie checking out her stash.

[dennisw]

That’s Queenie checking out the Royal Stash.

[SVTCobra03]

This is probably the definitive explanation of the coming monetary collapse:

http://www.silverdoctors.com/jim-willie-gritty-questions-on-the-historic-collapse/#more-22339

[bert]

Spain did not hoard the gold removed from the Americas. The gold was traded away to China and the east for stuff.
Spain spent the gold on high living

[dennisw]

Spain brought over so much gold and silver it lead to European inflation. They were able to inflate the money supply w gold. These days the money supply is inflated by conjuring up fiat money out of thin air. FR says — “We deem X amount dollars now exist on hard drive Y”

[Pan_Yan]

the attack on Mali to wrest its gold for German repayment,

Now that's an interesting thought. If that were truly the reason for the French invasion then Burkina Faso would probably be next on the list.