On ZH-scare "Buba gold repatriation to break CB paper gold system".

When I read the ZH article, it suggests to me that:

1) gold is being repatriated from France because Germany (being in the same currency union with France) will not need to pledge any gold held in custody at the BdF for foreign currency - it can get all the euros it will ever need at home or from the ECB.

2) No mention appears to be made of repatriating from London - so one assumes what is with them, around 13% of their total holdings, will remain in custody with the BoE, at least as long as Britain remains outside the Eurozone.

3) The article seems to make it clear that not ALL of the gold held in custody with the Fed will be repatriated. This suggests to me that they are happy with trusting the Fed as their custodian, but they do not feel it will be necessary to have so much available to pledge for USD liquidity in the future.

I think it is just a reassessment of what is likely to be useful to them in the future, then deciding if you don't need it to be in custody with someone else then why not just take delivery and remove all doubt anyone might occasionally express.


^{But perpetuating conspiracies is so much more of a crowd-pleaser.}