Reality Check: German Bundesbank began the process of gold repatriation from the New York Fed and Banque de France. Why are the Germans doing it now? Bill Gross of PIMCO tweeted that this is a sign of mistrust between the world’s central banks. Do you agree with this view?
James Rickards: Yes. As long as foreign gold is left in New York it can be confiscated by the United States in the event of an economic emergency. It is far more prudent for each gold power nation to keep most of its gold at home. A modest portion might be left in London or New York for trading purposes.