Well, it looks like various countries are hauling their Gold and Reserves deposits out of the USA (and I’d presume the EU as well). Seems that just Freezing Russian Assets was enough to get them motivated. So guess what will happen when the EU / USA actually steals the Russian Assets? The big sucking sound of assets would turn into an Amazing Flood Of Assets out of The West. The USA & EU at a minimum, but I’d expect any country endorsing it be on the suckage list too. That’s you; Australia, Canada, New Zealand, etc…
African and Middle Eastern Nations Withdraw Gold Reserves Amid American Economic Concerns
ByJillian Bennett
APR 24, 2024In a move reflecting growing concerns over the stability of the American economy, several African and Middle Eastern nations have begun withdrawing their gold reserves from the United States in recent months. This trend marks a significant shift in global economic dynamics and underscores the increasing skepticism among nations regarding the traditional safe haven status of the US dollar and American financial institutions.
The decision to repatriate gold reserves is not merely symbolic; it reflects a deeper unease among these nations about the trajectory of the American economy. Among the countries taking such actions are Nigeria, South Africa, Ghana, Senegal, Cameroon, Algeria, Egypt, and Saudi Arabia, each representing crucial regions in Africa and the Middle East. Their actions are prompting questions about the future of the US dollar as the world’s primary reserve currency.
The deteriorating state of the American economy serves as the primary impetus behind these withdrawals. Persistent inflation, mounting debt levels, and concerns about the Federal Reserve’s ability to maintain stable monetary policy have eroded confidence in the US dollar. Additionally, geopolitical tensions and uncertainties surrounding trade relations have further fueled apprehensions among foreign governments.
Gold and emerging market bonds are seen as good bets in that environment, but last year’s freezing of almost half of Russia’s $640 billion of gold and forex reserves by the West in response to the invasion of Ukraine also appears to have triggered a shift.
The survey showed a “substantial share” of central banks were concerned by the precedent that had been set. Almost 60% of respondents said it had made gold more attractive, while 68% were keeping reserves at home compared to 50% in 2020.
One central bank, quoted anonymously, said: “We did have it (gold) held in London… but now we’ve transferred it back to own country to hold as a safe haven asset and to keep it safe.”
“Substantial share”? How about big majority?
Nearly 80% of the 142 institutions surveyed see geopolitical tensions as the biggest risk over the next decade, while 83% cited inflation as a concern over the next 12 months.
Infrastructure is now seen as the most attractive asset class, particularly those projects involving renewable energy generation.
Concerns over China mean India remains one of the most attractive countries for investment for a second year running, while the “near-shoring” trend, where companies build factories closer to where they sell their products, is boosting the likes of Mexico, Indonesia and Brazil.
So it has begun / is underway, and has been for about a year now. More countries getting on the bandwagon out of the USA / EU. So not only has France had a big kick in the financial pants with Africa kicking them out, but the UK and USA along with the rest of the EU are seen as part of the same basket of thieves. Got it.
I’ll need to look more closely at India and Brazil (again), and add Mexico and Indonesia into the mix. My worry about Mexico is how much they depend on the USA and $US flows.
But, we’ll see. It will likely take a long time (year or two?) to ship all the gold out. Finding ships suited to being a floating Fort Knox is not easy, and a sudden upsurge in demand will slow things down. Some countries, I suppose, might just sell gold in the USA / EU and buy replacement gold instead, but that has transaction costs and risks too. OTOH, a sudden need to prove the gold is still in the vault (and perhaps buy some to replace the missing bits…) could drive prices up more too ;-)
Musings from the Chiefio 
Hey, there’s a wiki on it to:
https://en.wikipedia.org/wiki/Gold_repatriation
Interesting note: Russia wasn’t first. Looks like Venezuela got whacked a while ago.
BEGIN QUOTE:
Venezuela
Before 2012, the Central Bank of Venezuela, Banco Central de Venezuela (BCV), held about 211 tons of its 365 tons of gold reserves in American, European, and Canadian banks. In January 2012, however, Venezuela completed the move of 160 tons of gold bars (valued at about $9 billion) back home. The operation was ordered by President Hugo Chávez in August 2011 and was overseen by Central Bank chair Nelson Merentes.
In early November 2018, the Bank of England in London refused the withdrawal of 14 tons of gold owned by the BCV at the request of top U.S. officials, including Secretary of State Michael Pompeo and National Security Adviser John Bolton, who lobbied their U.K. counterparts to help cut off the government off from their overseas assets.
END QUOTE:
So I guess Russia wasn’t watching Venezuela then. But, OK, everyone knows The West are a den of thieves now and can not be trusted.
Does look like the wiki is way out of date now, lacking all the African and Muslim and BRICS+ repatriation moves…
The same thing is at work with me — and with you, and you, and you.
Those of us who are moving investments out of dollars and buying land, and precious metals, and tools, and ammo, and food are all doing the same thing (on an individual level) that the various nations are doing. The dollar is losing value with each new trillion being created but we stand in the same relationship to our banks that foreign nations stand to the entities holding their gold. We do not own the money in our bank accounts. Yes, they promise to return it to us — probably. Maybe. The laws are already in place (passed just after the Cyprus financial crisis of 2013) that you do not DEPOSIT money into your bank. You LOAN it to the bank and you may or may not get it back. You might just have made a bad loan when you gave it to their safekeeping. The nations who have deposited gold with the banks of the US and the EU are realizing that this is a game of musical chairs. Since there have been no reliable audits for decades, there will almost certainly be more claims on gold than there is gold. The nations withdrawing their gold now are grabbing a chair early, before the lack of chairs becomes obvious. Nations leaving their gold in the Western banks will end up falling on their butt when they try to get their “deposits” back. “Sorry we rehypothecated your gold — but here’s a stack of US treasury Bonds for the same amount.”
Looks like Central Banks all over the world are buying up more gold. Is it so they can ship something to nations demanding their gold bank, and thus keep up the illusion that “of course we will give you back your deposits!” Or is it because they see the price getting ready to skyrocket and want to take some profits when it happens?
https://citizenwatchreport.com/central-banks-record-gold-purchases-drive-strongest-first-quarter-demand-in-8-years/
You don’t need ships. Jet aircraft do fine for moving gold.
Central “Banks” do that all the time. 1. They do “hold” a fair amount of the “monetary” gold out there. (Hint, don’t think jewelry gold or industrial gold, like printed circuit boards, would be spared if a real crisis happens.). They do trade on it, as well. If I am remembering correctly, the International Monetary Fund has dibs on 25% of the USA’s gold reserves, via the Fed. Mostly, though, that’s likely just paper. If real shipments happen, well, I’d expect piracy to be a thing for more than just oil, etc. Smaller amounts could be, and likely are, shipped via aircraft that don’t do normal ID telemetry, I could guess.
Yes, while central banks buy and sell gold regularly, I believe they have been steadily increasing their purchases and net holdings.
I’ve mentioned this before, but it’s been a theme on Zero Hedge for years,
wondering how much “real” gold is in the US/UK/EU bank vaults, and how much is
some kind of “virtual” gold or paper options. With certain banks refusing to allow
external audits. How long before they stop releasing the physical gold to its owners, claiming “security concerns” or “market stability” or some other excuse?
@Keith:
https://www.mining.com/germans-give-up-on-getting-back-their-gold-held-in-us-45305/