The DNB (De Nederlandsche Bank) has recovered 120 tonnes of government gold from New York in accordance with its adjusted policy concerning the distribution of the nation’s gold - and to encourage confidence in the Dutch economy as consumer spending slumps.
Approxomately 120 tonnes of gold, valued at four billion euros, has been shipped from New York City to Amsterdam.
The valuable cargo was transported back to the Netherlands by ship, and then delivered into the DNB’s vaults on Amsterdam’s Frederiksplein by armoured vehicles in what was a large-scale and highly secretive logistical operation.
The DNB’s principal reason for moving the gold is to ensure a better distribution of government gold across various locations.
Within the DNB’s previous location policy, just 11 per cent of national gold was located in the Netherlands. Now that 120 tonnes of gold has been returned to the Netherlands, it is estimated that 31 per cent of the DNB’s stash of gold is Amsterdam-based.
The rest of the nation’s gold is distributed across three other locations: with 31 per cent in New York, 20 per cent in Ottawa and 18 per cent in London. It is estimated that the DNB has a total of 612 tonnes of gold amassed in its collective vaults, at a value of between 17 and 19 billion euros.
Whilst the DNB cited a more balanced distribution system as the principal reason behind the shipment of the gold, the national bank also hopes it will send out an encouraging message to Dutch citizens about the economy.
It is hoped that the replenished stock of gold in the nation’s capital will reassure the public that there is enough wealth to see the Netherlands through aother economic crisis.
In light of recent warning signs about the health of the global economy, and a drop in consumer confidence.
Consumer spending down
In a sign that the Dutch economy has not yet stabilised, CBS have released statistics which chart the recent drop in consumer spending and confidence.
Household spending on goods and services in September was down 0,6 per cent from the previous year. Whilst household spending on durable goods was down 4,1 per cent on the previous year, with sales of clothing and shoes suffering in particular.
The statistics also revealed that Dutch consumers are doubtful about the economic climate.
From October to November 2014, the willingness-to-buy indicator amongst consumers remained stable at a negative -10. Consumers are less willing to make big purchases, and are negative about their own financial situations.
Sources: Nos, CBS, Het Financieele Dagblad