100,000 ounces heading back to Budapest
MARCH 14, 2018
The National Bank of Hungary is bringing back the country’s 100,000 ounces of gold from London, citing fears over a coming ‘geopolitical crisis’.
The total value of the 3 tons of gold amounts to 33 billion Hungarian forint ($130 million dollars).
According to Hungary’s central bank, the move was motivated by concern over future “geopolitical crises” and the fact that storing gold outside the country is increasingly being seen as too risky.
“Gold is not merely an investment product for central banks, but is a strategic tool that is conducive to confidence in the country both abroad and domestically,” the bank said in a press release, adding, “The time has come to bring home the gold reserves of the country.”
The reference to “geopolitical crises” undoubtedly refers to Russia. Tensions have increased yet again in recent days after the nerve agent poisoning death of a former Russian double agent in the UK.
After the British government issued an ultimatum to Russia, Moscow responded in kind, with Russian Foreign Ministry Spokeswoman Maria Zakharova asserting, “One does not give 24 hours notice to a nuclear power.”
Hungary is not the only country to recently repatriate its gold reserves. Back in August, Germany announced that it had brought back 53,780 gold bars from Paris, with the the Bundesbank now holding no reserves in France. The bank also repatriated 940 tons of gold from London.
Austrian and Dutch central banks have also recently decided to repatriate large amounts of gold reserves.