BERLIN (Commodity Online): The demand from the German public, politicians and the media in Germany for bringing back the country’s gold held abroad and audit of Deutsche Bundesbank, Germany’s Central Bank shows poeple are turning to gold as a hedge against a dissolving euro and artificial interest rates, according to Michael Lombardi, lead contributor, financial expert in Profit Confidential.

Lombardi notes that, currently, the majority of German-owned gold is being stored in foreign central banks. (Source: Market Watch, October 31, 2012..

“Germany’s central bank is the second biggest holder of gold bullion in reserves, second only to the U.S.,” reports Lombardi. “The German central bank owns 3,395.5 tonnes of gold, comprising 72.4% of its entire reserves.” (Source: World Gold Council, October 2012.)

According to Lombardi, 66% of Germany’s gold is currently being held by the Federal Reserve; 21% is held by the Bank of England; and eight percent is held by the Bank of France. (Source: Market Watch, October 31, 2012.)

In the article “Germans Demanding Their Gold Back; Will They Get It?,” Lombardi notes that the issue of Germany’s foreign-stored gold is much bigger than it appears.

The Profit Confidential expert notes that the “Bring Back Our Gold” movement in Germany illustrates three things: firstly, countries want gold with them, because gold in hand is better than debits or credits saying the country has this much gold; secondly, people are losing trust in a monetary system that creates money out of thin air; and lastly, people are scared that if the euro dissolves, the country will need gold in hand to base the new measure of exchange on.

Lombardi reasons that many central banks have ruined the wealth of their citizens by flooding their economies with newly printed money and manipulated interest rates. As a result, Lombardi concludes, the public appetite is turning to gold.