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Australia Wants Its Gold Back

Gold repatriation has been a hot topic in the last 2 years. After Germany, Venezuela, the Netherlands, Finland, Poland, Ecuador, Switzerland, it could be Australia’s turn.
The latest campaign baseline is “Return Aussie Gold” initiated by an Australian volunteer. On his campaign site he writes the following:
There is unprecedented structural change underway in the international gold market due to growing uncertainty around the global financial system. There are also substantial reasons for concern associated with storing Australia’s Gold Reserves in London.
Australians let’s join together and petition The Federal Government to immediately act prudently and physically repatriate Australia’s Gold Reserves.

Where is Australia’s gold and how much room is needed to store it on Australian soil?

Australia has 80 tonnes of gold which is managed by the Reserve Bank of Australia (RBA) as part of its foreign reserves assets. The RBA’s PR department has stated that Australia’s 80 tonnes of Gold Reserves is stored at the Bank of England, in London for cost efficiency and security reasons. However, Australia has international standard bullion storage facilities with capacity to store Australia’s gold at cost competitive rates. Also the cost to build a new Federal Government owned facility is negligible when compared to the current value of Australia’s gold ($3.3 billion).

Why is it critically important to repatriate Australia’s gold reserves back to Australian soil?

“Possession is nine-tenths of the law,” an expression meaning that ownership is easier to maintain if one has possession of something, or difficult to enforce if one does not.
Australia holds two main assets as foreign reserves, i.e. gold and currencies. Gold only makes up 6% of the total value.
If the value of the currencies held by the RBA (and every other Central Bank) plummets due to a new GFC, gold will be the back-up reserve. This is exactly the reason gold is held now.

Source GoldSilverWorlds

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