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Currently two thirds of Germany's gold is stored outside of Germany. This is equal to about 183 billion dollars. Recently a decision was made that a transition would be made to bring some of the gold home to be stored in Germany. Half of the gold stored in the United States will be returned to Germany, in small increments over the next several years. They will also be taking some from the reserves stored in London and Paris.
While this is a controversial in the public regarding what it means about the economy, it seems like a pretty smart move for Germany to me. You can't always be making your decisions based on what is best economically for the rest of the world. The purpose of having gold is for backing in time of crisis and if there is a crisis it would be difficult to move it quickly. While it is smart to spread things out so they couldn't all be stolen or destroyed all at once, it seems that gold should be accessible in time of need. Hopefully the transportation goes smoothly.
I totally agree with you that it is a smart move for Germany. Especially, when you catch countries like the US red handed without their gold...haha
ReplyDeleteCurrency without some sort of backing is insolvent. We can print all the money we want, but that doesn't mean its even worth the paper its printed on.
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