Sir, – After 40 years of inaction, Germany has started to repatriate its gold and appears to be planning to store most of its 4,000 tons in Frankfurt. Is this a coincidence, or an indication of a plan to abandon the euro? It would be expensive for Germany to leave the euro zone, without a valuable commodity with which to “back” a new Mark. Using gold, rather than government bonds, makes this possibility significantly cheaper and much less risky.
Remember gold and silver have been the currency of choice by free people for thousands of years. Throughout history, governments have systematically tried to debase currency, against the wishes of their citizens. Only the German people can remember the perils of bad money and perhaps this is also true of the German political class. The modern economist just does not understand why this is important, and that may be why it hasn’t been deemed newsworthy.
The significance of this event should not be underestimated. – Yours, etc,