• EUROZONE GOLD EXCLUSIVE: Draghi mulls gold sales ban….


    EUROZONE GOLD EXCLUSIVE: Draghi mulls gold sales ban….

    Marigold Draghi?
    ….looks at gold-backed bonds to restore confidence

    The Slog’s Brussels Mole reports that a bold double-whammy scheme to stabilise the euro and restore confidence in eurozone bonds ‘in the intermediate future’ is under serious consideration at the European Central Bank (ECB). The plan involves banning the private sale of gold in the proposed Fiskalunion, and using ECB gold supplies as collateral for sovereign debt bonds issued by member States.

    • And then there is the news that the Federal Office of Comptroller in
      Germany pointed out that the German gold reserves in France, England
      and the US had not been inspected and verified since, hmmm, forever.
      This despite the fact that the government is in fact obliged to
      receive reports of such inspections in regular intervals, and does in
      fact receive them from the Bundesbank in regards to gold and specie
      stored in Germany itself.
      Interestingly the Bundesbank immediately declared that no such
      inspection was required as the gold was being certified regularly in
      the countries it is stored in, while the Comptroller pointed out that
      the request has in fact the force of law and wasn’t open for
      discussion. The government itself seems to have excelled at silence on
      the subject and in typical German fashion, the electorate dozed on…

      Imagine a bunch of German bureaucrats in cheap suits showing up at a
      depositary with a drill and a list of bar numbers. Such fun… And the
      wonders it might do for the gold price when it so happened that the
      world’s second-largest national hoard turned out to, well, you know,
      not be there.

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