Growing demands from German officials and politicians to formally check German gold reserves now held in the United States have sparked media reports that the gold reserves of several Western nations are believed to be smaller than previously thought.
In an article published Tuesday in Coin Week, Louis Golino suggests, “If these reports are accurate, they have important implications for the future price of gold, and therefore for precious metals investors.”
“First, they suggest that much less mined gold exists than previously believed. Second, this is especially significant to the so-called manipulation thesis, which hold that governments act to surpress the price of gold,” Golino noted.
“If governments hold less gold than we thought they did, then their ability to affect the price will also be greatly diminished,” he advised.
Germany is believed to have 3,396 tons of gold reserves, the second-largest gold reserves in the world after the United States. German politicians, as well as Germany’s federal Court of Auditors, have requested that the Bundesbank, Germany’s equivalent of the Federal Reserve, check up on Germany’s gold reserves, the majority of which are in storage in offshore banks.
Read More at mineweb.com . By Dorothy Kosich.