Monday, March 4, 2013

Another Government Worried About Its Gold: Mexico to Audit its Gold Holdings at Bank of England

The Mexican Government Audit Office has issued an official statement, criticizing the Bank of Mexico for not auditing the gold it has supposedly bought and stored at the Bank of England. The auditors ask the Central Bank of Mexico to “make a physical inspection with the counterparty that has the gold under its custody, in order to be able to verify and validate its physical wholeness and compliance with the terms and conditions of dealing with this asset.”

The Government Audit Office has concluded that 95% of the gold reserves of the Bank of Mexico are stored abroad and 99% of this gold is stored with the Bank of England. However, the Mexican central bank has never inspected the gold it bought, has not performed purity tests on it and doesn’t even have a list of all the gold bars stored in London.

The call for the audit comes on the heels of news that Germany's Bundesbank is beginning to withdraw its gold holdings from the Federal Reserve Bank of New York, the Bank of England and Banque de France.

With good reason, central banks don't trust each other when it comes to gold. Just one indication of  missing gold at the New York Fed or the BOE, and gold rockets.

No comments:

Post a Comment