FRANKFURT — For the great many Germans who still rue the day they had to trade their deutsche marks for euros, there has been at least one consolation. If the common currency didn’t work out, Germany still had huge reserves of the hardest currency of all — gold.Read the rest here.
Except, many people learned for the first time last year, it didn’t.
More than two-thirds of Germany’s gold reserves, valued at €137 billion, or $182 billion, is abroad, stored in vaults in Paris, London and above all New York. In fact, there is considerably more German gold in Manhattan than in Frankfurt.
On Wednesday, the German central bank said it would begin gradually repatriating some of the reserves, the second-largest stock in the world, after that of the United States. The Bundesbank was responding to a public outcry last year after a clash in Parliament about whether all the gold was properly accounted for.