Friday, November 23, 2012

Call to bring Austrian gold back home from the UK

The uneasiness of storing sovereign gold reserves in foreign vaults is spreading globally.  Repatriation of said gold reserves is the next step in alleviating those concerns.  Counterparty risk is real, and rampant re-hypothecation will become exposed, in my opinion.  In other words, the gold stored in London and New York that everybody thinks they own ain't there.

Austria is the latest country to raise questions on the viability of storing their gold offshore.  In fact, the existence of the gold is coming into question.  I've predicted this for years, and now trust in the gold custodial system itself is crumbling.

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