Will europe get its gold back from the UK?
derryb
Posts: 36,937 ✭✭✭✭✭
Following WWII many European and now NATO countries moved their gold to London for safekeeping from Stalin. Now that Russia wants rouble payment for its oil and gas exports from countries that are sanctioning it, it is very likely that these countries will seek and need to repatriate their sovereign gold from UK vaults in the event that Russia decides to also accept gold payment. Time will be of the essence as a very cold winter approaches.
Paying directly with gold has its logistics problems but gold can be held as a reserve currency and converted to any currency the seller of goods prefers. For example, if Pakistan wants Russian goods, they can convert their rupees to gold and then gold to rubles to complete the transaction. For this reason European nations who are heavily dependent on Russian goods and energy would be wise to now begin the process to repatriate their gold held by another central bank, in this case London.
- Does London have the gold? Has it been leased, or worse, sold over the decades as many experts insist? Today's “paper gold” derivative transactions constitute a genuine pure-bred Ponzi scheme exceeding many-fold the real gold bullion theoretically behind them, probably with a 100 to 1 ratio or higher.
- Who are the legitimate owners after many decades of international border shifting? Who would decide such ownership?
- Will London use the gold to leverage many remaining Brexit disputes with the EU?
- Just how serious could the whole mess become?
All of a sudden Russia has reminded the western world that gold is in fact money and that that is in fact why they filled their central bank vaults with it. Look for the gold price to explode if the word gets out that London does not have or is not able to immediately honor the demands. Is this an attempt, by those demanding payment in gold, to dismantle NATO?
The government is incapable of ever managing the economy. That is why communism collapsed. It is now socialism’s turn - Martin Armstrong
Comments
This could become a major disaster. Certainly could have wide reaching impact on European economy - and thus affecting world wide economics. Cheers, RickO
Gold certainly appears to becoming more prominent as money and a trusted option.
He who owns (has in possession) the gold.... ....rules. Very true in ancient times, and I suspect becoming more true now.
IF the UK actually has the gold... and not leased, lended out etc., will they give it up? Or hold and delay for political/financial gain?
If you don't hold it... you don't own it.... (well, technically you may own it.. but good luck getting it in a timely manner if and when you want it)
well that's another problem. UK has unresolved Brexit issues with the EU and may very well use the gold as a bargaining chip. In any case, like all gold reparations, nothing moves quickly if at all.
The government is incapable of ever managing the economy. That is why communism collapsed. It is now socialism’s turn - Martin Armstrong
Gexit !!
I got both UK gold and European gold in addition to gold from multiple other regions. All in the physical types. RGDS!
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
I was under the impression that Putin wants to be paid in Rubles.. The non traceable kind
"Russia will seek payment in rubles for gas sales from “unfriendly” countries, President Vladimir Putin said on Wednesday
correct. Is gold the next acceptable payment method. Many think so since he recently pegged his currency to gold.
The government is incapable of ever managing the economy. That is why communism collapsed. It is now socialism’s turn - Martin Armstrong
If his currency is pegged to gold, does this mean rubles are now convertible to gold at a fixed rate?
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
The payment system Russia has proposed is that Europeans open an account with Gazprombank and deposit Euros (or other currencies) that the bank then converts to rubles.
So yeah, pretty much business as usual. But good fodder for the sympathizers. More of the same "if this ever gets out" tabloid BS.
Knowledge is the enemy of fear
Untraceable rubles ? Kind of like me preffering paypal gift for bst stuff ?
Crap does this mean ill be on cnn ? Commiting an atrocity of some sort ? Crossing a red line ? Sanctions will soon follow
Perhaps, but chances are you'll be BBC
Gold will always be money ... even after the power runs out.
Sure, would think they will get there gold. Question is when? Would think there will be no urgency to deliver. Until all this craziness is resolved. I believe the agreement long ago has no clause on payback terms regarding time frame.
Australia suddenly wants to audit it's gold in London vaults. What could possibly go wrong? London needs to show everyone their gold at once, otherwise they will keep showing the same stack to different "owners."
The government is incapable of ever managing the economy. That is why communism collapsed. It is now socialism’s turn - Martin Armstrong
I love that aussie gold hunters show.
Nuggets just lying on the ground all over
What kind of hunting is that ? It’s like shooting fish in a barrel
I heard the rumor too UK rented its gold held to Dubai.
makes revenue off their holdings. Dubai I heard is flush with gold and gold markets.
who Knows??