Austria mulling gold repatriation

The Austrian state audit court says the central bank should address the concentration risk of storing 80% of its gold reserves with the Bank of England, Standard reports, citing draft audit report.

The court has advised the central bank to diversify storage locations, and contract partners, Bloomberg reported.

The Austrian central bank is currently reviewing gold storage concept, and doesn’t rule out relocating some of its gold from London to Austria.

Standard cited unidentified central bank officials.

The gold reserves of the Oesterreichische Nationalbank (OeNB) and their deposits in the UK and in Switzerland are a recurring theme in political discussions.

Especially after the example of the Deutsche Bundesbank the Austrians are serious about bringing gold home.

Given the “high concentration of risk in the Bank of England” the bank is also reviewing the “actual spread of the storage locations”.

Austria has 280 tons gold reserves, according to 2013 annual report, but only a small part (17 percent) is kept in Vienna, while 80 percent of the reserves are located in London, and three percent in Switzerland.

In comparison, the German Bundesbank has 3400 tons of gold, about half of it in the United States.

The decision was taken to resettle half of the gold to Germany.