Why Austria's Monetary Gold Transfer to Switzerland Is Delayed
Why Austria's Monetary Gold Transfer to Switzerland Is Delayed
Investigative analysis reveals the real reasons behind Austria's 50-tonne gold transfer delays
Investigation Summary
Evidence points out a 50-tonnes gold transfer by the Austrian central bank, from London to Switzerland, is held up due to a delay of the renovation at the Swiss central bank's vault.
Key Finding
In this follow-up investigation to our first article on this topic, we reveal that the Austrian central bank (OeNB) had implemented a new gold storage concept in 2015, but the planned transfer to Switzerland has been delayed for years due to vault renovation issues.
Investigation Contents
Background: Austria's gold storage strategy
The Austrian central bank (OeNB) had implemented a new gold storage concept in 2015, because the national court of audit (Rechnungshof, RH hereafter) found it was storing too much gold in London at the Bank of England (BOE). OeNB planned to repatriate 90 tonnes from BOE, and transfer 50 tonnes from London to Switzerland. Within five years (by 2020) the new storage concept should have materialized.
Austria's Gold Transfer Timeline
New Storage Concept Announced
Austrian court of audit finds too much gold stored in London. Plan to repatriate 90 tonnes and transfer 50 tonnes to Switzerland.
Repatriation Completed
Ahead of schedule, the 90 tonnes of gold had arrived in Austria from London.
Target Deadline Missed
The 50-tonne shipment to Switzerland hasn't arrived. Swiss vault renovation delays cited as reason.
Still Waiting
The shipment to Switzerland hasn't arrived until this day, with renovations expected to complete by 2024.
🇦🇹 Austria's Position
- Successfully repatriated 90 tonnes from London
- Politically on good footing with the U.K.
- No withdrawal problems from Bank of England
- Different situation than Venezuela's blocked repatriation
🇨🇭 Switzerland's Challenges
- Major vault renovation project underway
- Limited access to storage facilities
- Multiple delay announcements since 2018
- Completion now expected by 2024
📋 Document Evidence
- Two detailed audit reports from 2015 and 2018
- Code names used to hide depository identities
- Clear evidence of existing Swiss storage
- Renovation timeline confirmations
Evidence from Austrian audit documents
In two documents by RH—one from 2015 and another from 2018—there is evidence OeNB was already storing gold at the Swiss central bank (SNB), and wanted to add 50 tonnes to the same depository.
In both documents (RH1 and RH2 hereafter) the actual names of many banks, institutions and depositories are replaced by code names. Although, there is sufficient information disclosed to decipher who's who.
Cross-Verification Method
Other cross checks confirm "depository C in Switzerland" must be SNB. By comparing public disclosures from central banks like Finland with the coded references in Austrian documents, the real identities become clear.
Connecting the dots: Decoding secret depositories
By 2014 OeNB had closed all accounts with commercial banks and its metal at the BIS in Switzerland was allocated. The gold previously held at Swiss commercial banks was moved to OeNB's account at SNB.
2013: Commercial Bank Closures
2014: BIS Allocation
Current Storage Strategy
Location Swap Analysis
Attentive readers might have noted that in 2015 OeNB disclosed to have ~6 tonnes stored in Switzerland, which is less than 14.3 tonnes with the BIS at SNB plus ~7 tonnes at SNB directly. The explanation is a location swap executed by the BIS (from SNB to BOE) on the same day the metal was allocated.
After the swap OeNB held "approximately seven tonnes of gold" at SNB. Roughly in line with ~6 tonnes. The counterparty of the swap that moved metal from BOE to SNB is unknown.
| Year | Action | Amount | Location | Reason |
|---|---|---|---|---|
| 2013 | Close commercial bank accounts | ~7 tonnes | Swiss banks → SNB | Risk reduction |
| 2014 | Allocate BIS metal | 14.3 tonnes | BIS at SNB | Physical ownership |
| 2014 | Location swap | Unknown amount | SNB → BOE | Balancing positions |
| 2015 | Final Swiss holding | ~6 tonnes | SNB | After all transfers |
Swiss vault renovation delays
RH is mainly concerned about spreading the gold geographically and for OeNB being able to audit it. As early as 2013, auditing access was limited due to the Swiss central bank's vault renovation project.
Renovation Timeline Delays
Apparently SNB started moving out the gold from Bundesplatz 1 in Berne to the federal bunker near Kandersteg in 2013 whereby access to the vault was restricted. The dates on which the restrictions would be lifted more or less fit SNB's projections as mentioned in its annual reports.
Swiss Vault Renovation Timeline
Renovation Begins
SNB starts moving gold from Berne to federal bunker. Vault access restrictions begin.
First Delay Announced
SNB first disclosed the renovation was delayed until 2021.
Second Delay
Completion was set for 2022 in SNB annual report.
Third Delay
Timeline moved further back to 2024 completion.
Impact on Austrian Transfer
Aside from stagnating on site auditing, OeNB had to wait for shipping 50 tonnes from London to SNB's vault in Berne due to the renovation, RH concludes in 2015.
Complete timeline of delays
Other parts in RH1 also mention renovation work at depository C in Switzerland (SNB) as the reason an additional 50 tonnes couldn't be shipped immediately.
🕐 Original Plan (2015)
- Repatriate 90 tonnes from London ✅
- Transfer 50 tonnes London → Switzerland ❌
- Complete by 2020 ❌
- Four-vault storage strategy ✅
Only partial implementation due to Swiss renovation delays.
🔧 Renovation Impact
- Limited vault access since 2013
- Maximum 7 tonnes storage until 2019
- Multiple completion delays
- External circumstances beyond Austrian control
Infrastructure limitations forced strategy adjustments.
📈 Current Status
- Austrian repatriation completed ahead of schedule
- Swiss transfer still pending
- Renovation expected complete by 2024
- Strategy remains valid, timing adjusted
Waiting for Swiss infrastructure completion.
Historical Precedent
There is also an explanation for similar delays elsewhere. When Germany completed repatriating ahead of schedule in 2017, the Financial Times wrote 55 tonnes had been routed through Switzerland, "where two smelters remoulded the bullion," before it went to Frankfurt.
Conclusion and implications
More often than not speculation has the upper hand in the gold blogosphere. In 2013 many commentators (including me) were disgruntled by the pace with which the German central bank (BuBa) announced to repatriate gold from New York: 300 tonnes in 7 years. Eventually, it became clear BuBa wanted to upgrade the bars not adhering to LBMA Good Delivery standards.
Logical Explanation
There is also an explanation for the delay in OeNB's shipment from London to Switzerland. Likely, OeNB needed time to check and weigh the 90 tonnes coming home from London.
- Comprehensive audit of repatriated gold
- Quality verification processes
- Coordination with Swiss renovation timeline
- Risk management considerations
Timeline Adaptation
In any case, Austria knew the shipment to SNB had to wait a few years and so the decision was made to implement the new storage concept by 2020.
- Flexible implementation timeline
- Adaptation to external constraints
- Maintained strategic objectives
- Professional project management
Future Completion
But then the renovation took longer than anticipated and OeNB had to adapt further.
- Swiss renovation delays beyond control
- Multiple timeline adjustments
- Completion expected by 2024
- Final article planned upon completion
Investigation Complete
This investigation reveals that Austria's gold transfer delays are due to legitimate infrastructure constraints rather than political or financial obstacles. The systematic approach by Austrian authorities, combined with the transparent documentation through audit reports, demonstrates professional gold reserve management despite external delays.
Final Update Planned
I will write one final article on this topic, when OeNB's gold has finally arrived in Berne. This will complete the documentation of Austria's multi-year gold storage modernization project.
Disclaimer: This analysis is based on publicly available documents and statements from central banks. The conclusions drawn represent analytical interpretation of official sources and should not be considered financial advice.