Will Inconsistencies Over U.S. Release of German Gold Unveil Financial Woes?

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Recently, Glenn Beck alerted his audience to inconsistencies surrounding the first shipment of gold sent back to Germany by the Federal Reserve, where it had been held at their  New York  headquarters since soon after World War II for safekeeping.  The news of Germany’s reparation of 300 of the 674 tons of gold stored with the Federal Reserve first surfaced in 2013, sending ripples of conjecture throughout the financial world.

An additional 374 tons stored with the Banque de France in Paris was requested by Germany to be shipped back to them.  In October, Germany repatriated two-thirds of its gold from the Bank of England.  That same month, a German federal court granted Bundesbank the right to conduct annual audits, and inspection, of its overseas gold reserves.

As it turns out, rumors of Germany’s  concerns over the safety of their overseas gold reserves may have credence.  Before Germany requested a portion of their gold back, the Federal Reserve had denied Germany to physically inspect the gold stored in their New York vault.  When the first shipment of gold, a mere 37.5 tons, and short of the scheduled shipment, arrived to Germany, melted down, and no longer carried the German stamp that would have otherwise identified it as having been the original gold which had been stored with the Federal Reserve for decades.  The missing stamp would have denoted its weight and purity.

When German reporter, Lars Schall, asked why the gold couldn’t have been melted on German soil, German authorities answered that they had a new storage concept which made its being melted down a necessity…which, basically, was no answer at all.

Glenn Beck’s report (see link below) brings up the possibility that the gold may have been sold to other countries.  Here is an excerpt of Beck’s discussion about inconsistencies regarding the first shipment of Germany’s gold reserves and it’s questionable condition:

“And here’s the disturbing part, even more disturbing. The reports that are coming out now is that the gold we sent them over the holidays was melted down and recast. This is important. It begs the question why?”

In his report, Beck suggests the delay may be due to a large scale Ponzi scheme, a siphoning of the gold reserves, in which the gold was sold back and forth from country to country while remaining on U.S. soil…until the U.S. tired of the game and claimed it permanently.

The following are two of the initial reports about Germany’s 2013 announcement that they wanted their gold back, including excerpts. 


“So what the heck is Germany doing? It is a nation with a deep-seated fears about the stability of its currency, no doubt in part the legacy of the Weimar hyperinflation of the early 1920s. The fixation on its gold comes at a time when the world of finance seems in chaos. Germans are being asked to help rescue Greece and other European nations with troubled finances. The European Central Bank has bought bonds from some of those nations, which Germans widely view as tempting enormous inflation. Against that backdrop, it is perhaps not shocking that there is political resonance to the theory that the New York Fed and Banque de France may be putting one over on the Bundesbank and that some of Germany’s gold might actually be missing.”


“That sparked something of a political controversy since these gold reserves have never been thoroughly inspected and audited.”

What’s more, the U.S. Federal Reserve had already refused to allow the Germans to verify their gold despite several attempts.

More recently, the backlash from Germany’s request can be found, in part, in the following articles: 


“Whether or not their action really does reflect a lack of trust in the Fed (U.S. Federal Reserve) is a moot point, but it is certainly likely to be taken that way by some sectors of the market. The general inference is that if there was a real debt crisis in the U.S., then they (German authorities) would feel a little more confident about having their assets at home.”

But Is There Another Issue At Work?

Germany  has fared better during the current economic crisis than other nation members of the European Union.  Although experiencing a slight increase in December, 2013, their unemployment rate stands at 6.7%.  In comparison, Spain’s  unemployment rate is a heart-thudding 27.2%, and  Greece’s unemployment rate has soared to 26.9%.

Germany  has not suffered angry protests over high unemployment rates like Spain, Greece and Italy has.  Even so, Germany’s banking system is highly leveraged, and susceptible to the volatile derivatives market (the reason for the current economic mess  experienced globally).  Although recent reports reflect that  Germany’s  Deutsche  Bank is warning of  of a bumpy 2014,  Germany’s current solvency makes them the poster child of EU solvency. 

So the question remains why Germany would wait through five years of this recession to demand their gold back?  Could they be averting financial disaster by getting their own house in order before a larger global financial downturn occurs?  It’s worth considering. 

When you put the situation in a smaller sphere, it becomes easier to understand.  Let’s say you have entrusted a valuable family heirloom with a member of your family.  Over the years, you’ve watched them run up their credit cards and refinance their home to pull out the equity to support a lavish, spoiled lifestyle. 

Now, they’ve exhausted the equity in their home, and their credit card providers have upped the interest rate on their revolving credit, which they will not be able to meet.  They were already spending way beyond their means! 

In this scenario, just replace that relative’s out of control spending with U.S. decision makers and the Federal Reserve, and this could be the impetus for Germany’s sudden interest in getting their gold back.  Their inheritance, in this case, the gold that is stored in the U.S. and France.

Recent Wake-Up Calls

Recently, China’s spending spree appears to be catching up with them to the tune of approximately $23 trillion.  In November of 2013, China announced they would no longer be stockpiling U.S. Currency.  Their decision and the outrageous credit bubble   China created over six short years has the potential to impact the U.S. and the global financial market significantly.  In the meantime, Japan has followed the Federal Reserves lead and are printing money ’round the clock to remain solvent.

In an attempt to stave off bankruptcy, many  Eurozone  countries have adopted austerity measures that have pushed back retirement age, raised taxes,  and forced the restructuring of government spending which impacted pensions, union jobs and public assistance.  The most contested last-ditch effort was Cyprus’  attachment of bank accounts to secure a bailout in mid 2013.  What isn’t widely understood is during the 1990’s, every bank account in  Italy  was taxed, although slightly, at .06% to avoid a collapse of the lire and  Iceland,  one of the first member nation of the EU to fall,  augmented their financial bailout by not honoring depositor’s insurance for overseas accounts.

These events occurring within a narrow time frame should serve as a wake-up call to get our own house in order.  Should it turn out that our economy continues to limp along, we have inflation-proofed our food and prep goods overhead costs as prices continue to rise.  But should the issue with Germany’s gold reserves be an unveiling of worsening economic troubles ahead, we’ll be that much closer to being ready.  

Do you feel the current recession is showing signs of improvement,  or growing  worse?  Have you felt the need to kick your preparedness into high gear?  Please sound off by commenting below!

If this, and the recent drop in gold and silver prices have made you decide that it’s FINALLY time to buy gold or silver, I want to encourage you to read this article that I did with a 35 year gold selling veteran, Tom Cloud:  survivethecomingcollapse.com/2522/best-source-gold-silver-preppers/  He’s been through every major modern up and down in the market, and when you mention the article, he’ll give my readers a special discount.

If you haven’t signed up for the Journal of Tactics and Preparedness yet, I want to encourage you to do so right now.  It is the best source available for continual cutting edge tactical and preparedness training and, during this special launch pricing, it’s only a fraction of what most full fledged books and courses are charging.

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Chapter 38 of the book, Implant, has been posted.  You can Click Here to continue reading.


God bless and stay safe,

David Morris and Survival Diva


  1. Shawn McEwen says:

    We are not returning the gold to Germany because we don’t have it or plan to steal it outright. Funny considering that possession is 9/10 of the law and all. The simplest explanation is most often the correct one. Stop trying to figure out “why” this is happening because why amounts to nothing more than metal mas*********. The only thing worth knowing would be ‘is this in fact occurring, or is it not’. If it is (and it looks very much like it is) occurring then that fact points to deception, and what reason would the fed have to deceive? They either don’t have it or plan to steal it/have already stolen it. You don’t need to be a financial genius, or a world marketeer to figure out what’s happening here. It’s my opinion that you merely need to study human nature as it relates to the facts of any series of events. What does this all mean? It means we as a nation are in more trouble than you or I thought. Beyond that, who cares? If you want to concentrate on a facet of what is happening in the world today, concentrate on one that you can impact and/or change for the better. All else detracts from the true goal.

    As for preps, you bet I’m increasing the fervor with which I prepare. Food, water, security, knowledge, but most of all my faith. Another area I concentrate on is improving the lives of others whenever and however I can. These are all facets of today’s worsening world that I can impact positively. I’ll either survive whatever is coming or I won’t, and either way I will never give up. It’s pretty simple. Good day all, and God bless!

  2. Jim Cumber says:

    How come NO ONE is mentioning the Tungsten substitution for gold fiasco that was first mentioned in 2012-2013? How did THAT finally turn out, or has it finally been resolved? Could it possibly be that Germany’s gold reserves have actually been replaced by tungsten, with a gold paint coating? Is any other country’s gold been replaced with “anti-tank round fodder?” – Jim Cumber

  3. What I find somewhat surprising is the relative lack of discussion on the blog about this subject, something so important that it may be directly related to the eventual collapse of the US dollar and, thus, the entire country’s economy.

    Watch this subject carefully. It may lead to conditions for which we all are preparing. Unfortunately, the main stream media will not be covering this topic, perhaps until it is too late.

    The melting of the German gold prior to its return just does not make any logical sense, other than what was returned was not the original German gold. Melting it prior to sending it to Germany would hide the fact that we really do not have their gold.

    Is German Chancellor Angela Merkel’s upcoming visit to the US in any way related to this discrepancy? Might she bring this up with the administration while in DC?

    • Survival Diva says:

      We agree. This, to me, is a huge red flag that we need to pay attention to. Globally, we are standing on the precipice of a crash that will make the first derivatives mess look like child’s play–another failure in the derivative’s market that’s being warned about will topple banks, globally. To understand what may be coming allows us to be prepared, ahead of time, to keep valuables somewhere other than a safety deposit box at a bank, and to consider trading in fiat dollars for silver or gold or food storage.

      Now, why don’t I believe the reason for Merkel’s upcoming visit will be shared with the public…

      • Diva;

        I’ve been thinking over yours and my post today (while clearing snow from the drive) as to why so few folks are pitching in. Perhaps it’s due, at least in part, to the feeling that there is NOTHING we can do to change the course of history with regards to the impending collapse of the economy, but there are lots of things that we can do, and are doing, to prepare ourselves and our families for what comes next. This, really, is where our hearts lie — in getting ready for what comes next. Not for what we can’t control, but for what we can.

    • am i the only one that wonders what all the hullabaloo is about? 675 tons of gold sounds like a lot – but even at $1,500 an ounce that’s only 32.4 billion worth of gold. compared to our yearly multi-TRILLION dollar deficits, that’s chump change. it makes for intriguing reading and speculation – but that’s about it.

      • Survival Diva says:

        True, it pales in comparison with multi-trillion dollar deficits, but if it’s an indication that the fed/govt (and yes, I’m aware the Federal Reserve is as “Federal” as Fed Ex) is “borrowing” from German gold reserves, it’s time to keep a close watch on who we’re storing our life savings with, or storing in a bank’s safety deposit box. If we are aware of the chess game that our monetary system has become, we have time to get out of the way. Personally, I’d much rather invest in food storage or prep goods than depend upon fiat dollars sitting in a bank that may not have our best interest at heart : )

  4. Would part of this gold be what was stolen from Jews during and before WWII?

    • Mith Radates says:

      If it is, it was facilitated by G. Soros who turned in fellow Jews to the Nazis for a share of their wealth.

  5. I am not sure – but can’t Gold absorb radiation – and Silver does not?

    • No element truly “absorbs” ionizing radiation. But the elements with higher atomic numbers make for better shielding properties.

      • Albert McBee says:

        Tungsten is also very heavy, only marginally less dense than Gold and would make a decent decoy when covered in a thin layer of gold. Tungsten, however possesses low level radiation which is fully detectable by better equipment. It would be easily detectable with a simple Geiger counter.

  6. Houston Prepper says:

    The ZeroHedge website had an article about the German gold repatriation earlier this week, when the price started going up again. Glenn Beck’s figure of 37 tons returned for 2013 by the Federal Reserve is incorrect. The 37 tons is the aggregate of the Federal Reserve’s 5 tons and the Banque de France’s 32 tons. Essentially, the Fed paid 5 out of 300 tons; Banque de France paid 32 out of 374 tons. (I don’t remember the ZeroHedge article mentioning anything about gold held with the Bank of England.) Remember, the Fed is supposedly dividing the payment of the 300 tons over 7 years, so the Fed should have sent approximately 43 tons this year, not a measly 5 tons! This is less than 2% of the 300 tons for the Fed, versus 9% for France. So the question is why was the Fed not able to come close to the 42 ton figure? The issue of the melted bars is tertiary at best, compared to the actual shortage in delivery (juxtaposed to the inventory depletion at the COMEX and London vaults, while China has purchase more than the annual global mining output over the last 18 months). Basically, gold supplies are moving from West to East (look up Jim Willie – the Golden Jackass on youtube or google for more in depth analysis: or King World News).

  7. Things have gotten better for my family only through hard work, persistence, frugality and self-sustainability. Others we know have not fared so well. I think our economy is going to crap. and the only thing that can fix it is a drastic change in government, which I do not feel is going to happen any time soon. I will continue our preps and include more self-sufficent prepping projects. Knowledge is power no one can take from you. I hope.for the best but prepare for the worst

  8. Wayne Mickel says:

    I think this is going according to Gods plans for the human race, the Human race has pretty much turned it’s back on God and in the book of Revelations is talks about the the black horse and the rider was holding pair of balances in its hand and I heard in the midst of the four beasts say a measure of wheat for a penny and three measures of barley for a penny: and see thou not hurt the oil and wine Rev. 6:5-6 and what that means is an economic collapse and hyper inflation and much want among the people. You can prepare but you can see that judgement time is coming, so just pray and believe in Jesus Christ crucified and raised from the dead, who has given those who believe Grace to be saved from death.

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