Dutch Central Bank Orders Pension Fund To Sell Its Gold

Discussion in 'Gold' started by Norrin Radd, Feb 11, 2011.

  1. Norrin Radd

    Norrin Radd Member

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    This is rediculous

    http://www.zerohedge.com/article/he...utch-central-bank-orders-pension-fund-sell-it

    "Perhaps the most stunning example of what may be in store for asset managers and pension funds (and possibly retail holders) who dare to challenge central bank monetary authority comes from the Netherlands, where we have just witnessed the 21st century equivalent of Executive Order 6102. The story in a nutshell (and as translated loosely from the primary source presented below): the glassworkers pension fund (SPVG) was ordered by De Nederlandsche Bank (DNB, or the equivalent of the Dutch central bank), that it has to sell the bulk of its gold assets. After the SPVG refused to comply with the order, the DNB went to court and the decision has come out, siding with the central bank, ordering the SPVG to sell the required gold within two months. The pension fund, which invests for 1142 employees, in late 2009 had gold bars worth 34.6 million euros, or about 1400 kilograms. The total fund assets amounted to 288 million euros at that time. The DNB argued gold is a commodity and holding 13 percent was overweight in comparison to the 2.7% average that pension funds are invested in commodities. DNB has found that such a large proportion of gold is inconsistent with the interests of the participants. SPVG sees gold as a medium of exchange, such as euros, but DNB believes that the price of gold fluctuates too much for it to be classified as an investment. Translation of the translation: the central bank has now directly ordered a fund how to allocate its gold assets, because it explicitly disagreed with the fund's statement that gold is money, claiming instead that it is nothing but a very volatile commodity. Very soon no pension funds in the Netherlands will be allowed to hold any amount of gold more than the merely nominal. This latest gold confiscation equivalent event is most certainly coming to a banana republic near you."
     
  2. col0016

    col0016 Active Member

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    "It can't happen to us".
     
  3. Captain Kookaburra

    Captain Kookaburra Well-Known Member Silver Stacker

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    Get Gold ... By any means...

    It applies to Central Banks, as much as it applies to you and me.
     
  4. pmfiend

    pmfiend New Member

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    Gold price goes from $300 to $1300 in 10yrs and is predicted to rise much higher. How is that inconsistent with the participants interests? Anyway, WTF authority does the DNB have over a private fund's portfolio, if they want to invest in beanie babies they should be allowed to.
     
  5. goldpelican

    goldpelican Administrator Staff Member

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    This is the key sentence that would have me very worried as a Dutch resident!
     
  6. Captain Kookaburra

    Captain Kookaburra Well-Known Member Silver Stacker

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    Try this eBay Auction for a bargain then .... 170071914346
     
  7. El Bullion

    El Bullion New Member Silver Stacker

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    I tend to agree with one of the commenters on that post:

    A signal to buy more gold?
     
  8. Captain Kookaburra

    Captain Kookaburra Well-Known Member Silver Stacker

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    You need a signal?
     
  9. goldpelican

    goldpelican Administrator Staff Member

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    I was expecting an eBay listing for 1400kg of SPVG gold holdings :)

    Just noticed that the fund is holding over a kilo of gold per member - the fund managers should be getting bloody awards.
     
  10. El Bullion

    El Bullion New Member Silver Stacker

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    Me? Yes, because I've been focusing too much on silver lately, thinking that the POG is not as easy to manipulate and will therefore not move upwards as fast as silver. :cool:
     
  11. Shaddam IV

    Shaddam IV Well-Known Member Silver Stacker

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    Hah!
     
  12. Guest

    Guest Guest

    Sets a frightening precedent though. They can't go after the little people, but institutions are fair game.

    Agreed, this is a very strong buy signal for gold if I have ever seen one, especially if this turns out not to be a one off.

    You know what the fund should do though? Offer to sell the gold first to the fund holders.
     
  13. boston

    boston Well-Known Member Silver Stacker

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    +1 :D
     
  14. Lord Dragon

    Lord Dragon Member

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    What if the Aussie govt says you cant hold gold in a SMSF. They have already said you cant hold art and wines etc.
     
  15. goldpelican

    goldpelican Administrator Staff Member

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    Flee to the Caymans? :D
     
  16. villiagegate

    villiagegate New Member

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    While I realise we're a world away, stories like this make me nervous about holding allocated metal in the Perth Mint Depository.

    Time to go re-read Bron's articles on confiscation in Australia.
     
  17. Big A.D.

    Big A.D. Well-Known Member Silver Stacker

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    I'd say that directive to sell is perfectly fine if the Dutch central bank is prepared to guarantee any lost profits.

    If gold is at $3000 in five years time, the central bank just pays SPVG $1650 for every ounce they made the pension fund sell.

    C'mon DNB, if gold is such a bad investment you'll have no trouble putting your money where you mouth is.
     
  18. Slam

    Slam Well-Known Member Silver Stacker

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    Maybe an alternative is to sign an agreement, if the fund tanks and your holding gold. These fund members will not put their hands out asking for a bailout or any future rights to a government paid pension when they retire.

    The members take full responsibility for the gains or losses and its none of the governments business.

    Slam
     
  19. PerthStack

    PerthStack Member

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    Paper gains can be stolen, gains in gold cannot until the gold is sold. Dividends on shares and retal incom have to go through banks, where they steal a bit, every quarter the dividends are paid. Gold sitting in a vault does not produce dividends in fiat, which can be stolen via fees and forex etc.
    By FORCING a super fund to turn their gold into shares etc with periodical dividend payments, those bankers just increased the pool of investments they can steal from, by 10%. And they also end up with a big pile of gold, pretty simple really.
     
  20. Ossie

    Ossie Member

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    Funny you mention that, exactly what i thought when the ebay ID link was listed!!
     

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