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Bank of Australia Admits 99.9% of Gold Reserves Are Held in Bank of England

Thursday, December 20, 2012 22:23

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(Before It's News)

The Internet Post

How do you say rehypothecation in Australian?

After months of persistence, our friend Greg from AUSBullion has received written confirmation from the Reserve Bank of Australia that the bank holds all but 80 kg of Australia’s gold reserves at the Bank of England. Out of 80 tons of physical gold, less than 0.1% is held in Australia!

The Central Bank defends London’s storage/rehypothecation of Aussie gold, stating: London is a major global gold trading market and the Bank of England provides a secure and cost-effective storage location for central banks and market participants. The Reserve Bank has processes in place to ensure that the gold reserves are maintained appropriately. It is not considered necessary from management, security or operational perspectives to relocate the gold bars to a facility in Australia.

The Bank of Australia’s admission that nearly all of Australia’s gold reserves are on deposit at the BOE is below:

From AUSBullion‘s Blog:

As at end-June 2011 the Reserve Bank of Australia held 80 tonnes of gold in London Good Delivery bars. The Reserve Bank holds 99.9 per cent of its gold reserves in the United Kingdom at the Bank of England. The remaining 0.1 per cent is held at the Reserve Bank’s Head Office in Sydney.

London is a major global gold trading market and the Bank of England provides a secure and cost-effective storage location for central banks and market participants. The Reserve Bank has processes in place to ensure that the gold reserves are maintained appropriately. It is not considered necessary from management, security or operational perspectives to relocate the gold bars to a facility in Australia.

The Reserve Bank has reviewed its approach to releasing details about its management of the physical reserves of gold and decided to release the above information.

Please note that we answered your previous questions as a routine public enquiry. The FOI Act concerns itself with the release of documents, rather than answering questions, so a request must seek documents to be valid.

Regards

source

Filed under: economics Tagged: Australia, Bank of England, Central bank, Germany, Gold reserve, London, Reserve Bank of Australia, SYDNEY For more News Visit: http://tipggita32.wordpress.com