How Safe Are India's Gold Reserves

After steadily rising for 10 years, how safe are the world’s largest reserves of gold?

India, with the largest (private and government) reserves of gold in world, needs to examine the safety question very seriously. While, there have been many advocates and supporters for many European claims, I am yet to see any support for reclaim of any of the colonial loot from India by Britain.

In spite of close cultural and economic relations, WW2 was started by countries of Western world for gold, oil and access to markets. With excess of printing capacity, any country in world can print notes. During any period of turmoil, what matters is gold. After all, even India with the largest gold reserves in the world, needed to pledge gold in 1991 for small loan from IMF and World Bank. Is our gold safe? Look at the experience of some of these countries.

The Belgian Gold

Anticipating German invasion of the Netherlands, the National Bank of Belgium moved some part of its gold reserves to Bank of France, for safe keeping. However, after France itself came under attack, Belgium instructed the French to transfer Belgian gold to London. The French instead, moved that gold to Dakar, Africa, to a French bank. After the fall of France, Pierre Laval, Foreign Minister in the French Vichy government of Marshal Petain, handed over the gold to Hitler’s Germany - which reportedly, recast this gold, put pre-war stampings and sold it to the Swiss. What happened after that. Well, the Belgians lost it all, I presume.

Czech Gold

After Hitler’s invasion of Czechoslovakia, under the British-Czech treaty, Britain was enjoined to join the war on the Czech side. Instead, Montagu Norman, the head of Bank Of England, under a technicality, handed over Czech Gold to the Germans - in spite of the British Parliamentary restrictions; a supposedly secret transaction, blown open by a connected reporter.
After many enquiries, investigations, Montagu Norman, (yes, the same racist who collaborated with Churchill to loot the Indian peasantry) was let off without even a rap on his knuckles. After the war, Montagu Norman set up an institute to do research (like Joseph Mengele) in eugenics. His former boss, another racist, Churchill, set his armies on the Mau Mau, fighting for Kenya’s independence, and hundreds of thousands black Kenyans disappeared. Did the Czechs get their gold back? I doubt!

The French Experience

Before, during and after WW2, large numbers of national and private treasures were looted, misappropriated and generally fell into disputes. The French Government had a similar experience .

Spain and Gold

For nearly 10 years, the Spanish Civil War raged - a proxy war between the Germans and Russians. The target, Spanish gold. During the entire see-saw of the civil war, the entire Spanish gold disappeared - between the maws of the French and the Russians. Reputedly, Stalin boasted that Spain will never see their gold again. I am sure the ghost of Incas were at peace after 400 years.

The British Experience

Britain itself found that the they could buy anything only with gold. A staunch ally like the USA, demanded payments in Gold. Britain sold the Viscose Company, receiving a paltry amount. British investments in Canada were disposed to pay US for for raw materials. A significant part of British gold reserves, were safely moved to Canada on board the battleship Revenge and HMS Emerald to the vaults of Bank Of Canada (which still acknowledges the British crown) banks. American warship, Louisville was sent to Simonstown South Africa to take delivery of British gold

Secret of Japan’s rise

Year 1542. The Sado gold mines were discovered. In 16th-17th century, Japan became the second largest producer of gold in the world. Rapid rise of Japan after that and the rest of story is known to the world.

Korea claims that Japan plundered Korea of hundreds of tons of gold from 1937-1944. Philipines, Indonesia have all raised claims against Japan for war time gold loot. Regardless, one American writer had definitely hit a jackpot - Gold Warriors: America’s Secret Recovery of Yamashita’s Gold (By Sterling Seagrave, Peggy Seagrave). Ian Fleming is supposed to have based his story on the Yamashita chapter of WW2.

Japan’s top underworld crime boss, Yoshio Kodama, (ranked as an admiral) a major figure in the Japanese underworld was in charge of Project “Golden Lilly” - after one of Hirohito’s poems! Objective - looting gangsters in Japanese occupied territories. Operations Supervisor - Emperor’s Hirohito’s brother, Prince Chicubi. Management - Japan’s top financial figures.

Subsequently, allegedly, a lot of this gold landed with Ferdinand Marcos; the Filipino dictator. Swiss banks, Macao criminals, American generals and politicians - all involved.

The Final Accounting

Nazi gold was found by various armies and individuals all over Europe. In Lake Toplitz and in the Thuringien salt mines. Finally a co-ordinating agency was set up by Americans for gold recovered by American Armies to account, re-distribute and reconcile claims. The European banking system, especially the Swiss and the Vatican have been subject to various claims, allegations and conspiracy theories.