Over a month ago, the media pointed out that the price of gold increased again. A sign that investors are using gold against weaker stocks, as a response to the uncertainty surrounding Brexit and the trade disputes around the world. But even a child knows that when gold starts shining, it is a sign of trouble ahead.
The recent Brexit developments send waves of worry throughout Europe, whilst governments across the English Channel are increasingly interested in taking back control over their money.
Only a year ago, the National Bank of Hungary took back three tons of the country’s national gold reserves stored at the Bank of England. The decision followed similar reactions from Austria, Germany, Holland and Venezuela, which considered storing the national gold reserves in London a risky decision.
For a few days now, the Romanian authorities have been debating whether to take back their sixty tonnes of gold stored in the London vaults. With the crisis of storage space the British authorities have been facing for years, I imagine that storing a country’s national gold is not cheap.
Sixty tonnes is, by any means, a lot. Imagine ten elephants put together, if one takes the average weight of one elephant at around six tonnes. To put it simply though, the average weight of 15 people together, say, in an elevator, is about one tonne. By the same logic, sixty tonnes of Romanian gold is about 900 Romanian migrants, currently living in London.
What would be the weight in gold of 300,000 Romanian migrants currently in the UK? And what about the 3.7 million European migrants, in the UK? Imagine that gold! Imagine the value!
But in this equation, and in all Brexit negotiations, who is looking at what value people have, when financial interests are at stake?
©Maria Stadnicka, 2019
All lies Get the facts right. Germany will still have 1,236 tons in New York, 432 tons in London and the rest in Frankfurt. The current repatriation involves moving 300 tons from New York and 374 tons from Paris. The Bundesbank said it is not worried about keeping gold in England despite Brexit, as London remains a key gold trading market and a safe place.Comment by Dave Lawton on 10 March, 2019 at 9:31 am