James Turk: "Germany's Gold Is Being Held Hostage By The Fed"

Smoke and mirrors.  The Fed doesn't have the gold.
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Highlight from James Turk's interview Saturday with King World News.
“It’s quite clear that the German gold is being held hostage.  They are not getting what they want.  They are getting what the Federal Reserve is telling them they can have.  The fact that they are doing it over 7 years rather than 7 weeks, is just an indication that gold probably isn’t in the Federal Reserve, and the Federal Reserve doesn’t want to have to go out and buy it overnight to fulfill the German demand.  They are trying to stretch it out as long as possible in order to keep gold prices controlled.”
“I mean you can do 5 tons at a time on an airplane shipment. A few hundred shipments and you can have that (1,536 tons of) gold back (in Germany) in a matter of weeks. The only possible conclusion you can make is the gold isn’t there.
You can do what France did back in the 1960s....
“You send over a couple of ships and bring the gold back to your country that way.
When Charles de Gaulle asked for his gold out of the Federal Reserve back in 1962, it didn’t take 7 years. He got it right away. But back then the gold was in the Federal Reserve because it wasn’t going out in the leasing and lending program that governments have been using in recent years in order to keep the gold price suppressed.
It will be interesting to see whether this leads to other central banks also asking for their physical gold.  And more importantly, since there are so many paper (claims on gold) in the various gold ETFs around the world, it will be interesting to see whether the institutional investors are starting to recognize what the central banks are doing, and take some of that GLD and all of the other ETF paper and start saying, ‘Look, I don’t want shares, I actually want ounces.  Deliver me the physical metal.’
Continue reading...
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More Detail
German Gold Storage In The Year 2020
The German central bank is planning a “phased relocation” of 300 tonnes (metric tons) of gold from New York to Frankfurt as well as an additional 374 tonnes from Paris to Frankfurt by 2020.
The reserves should end up looking like this:

• Frankfurt (31%, currently) 50% by Dec. 31, 2020
• New York (45%, currently) 37% by Dec. 31, 2020
• London 13% no change
• Paris (11%, currently) 0% by Dec. 31, 2020

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Funny stuff:
This just in from the Onion...Geithner is pissed.