Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

Chinese Bank Acquires Huge London Vault

  by    0   0

China’s largest bank is buying the lease on a huge gold vault in London, another sign of gold’s continuing shift from West to East.

goldbars_3544916b

As the Telegraph put it, acquisition of the 1,500 ton vault will enlarge ICBC Standard Bank’s footprint in the city’s bullion market:

The Chinese and South African lender is aiming to fill the gap left by Western banks, which are retreating from commodities to cut costs and reduce regulatory burden.”

The Chinese bank has also applied to become a clearing member of the London gold and silver over-the-counter business. The Telegraph reports member banks will make a decision within the next few months:

Currently, five banks – JP Morgan, HSBC, Bank of Nova Scotia, Barclays and UBS – settle daily bullion transactions between dealers, amounting to more than $5 trillion-worth of metal each year in the London over-the-counter market.”

These recent developments are another sign that gold is shifting East, and that Asia is becoming increasingly influential in precious metal markets.

Last summer, the Bank of China joined the twice-daily gold price fixing process run by the London Bullion Market Association (LBMA). With the bank’s inclusion, the Chinese now have a small role in directly setting the price of gold in Western markets. Around the same time, China announced the formation of its largest gold-investment fund ever: the “Silk Road Gold Fund.”

Just a few months later, China Construction Bank joined the London Bullion Market Associations (LBMA) silver price-setting process.

Last year, investors withdrew a record amount of gold from the Shanghai Gold Exchange, signaling a steady increase in demand in the world’s largest gold consuming country.

In November, Degussa Golchandel, the largest precious metals bullion dealer in Europe, opened it first Asian retail bullion store in Singapore to cash in on the increasing Asian demand.

In the background, China continues to add to its gold reserves. The country added more than 100 tons of gold to its stash during the last six months of 2015. The country’s official gold reserves stood at 56.66 million ounces at the end of December.

This is all indicative of the movement of gold from West to East. More and more, Asia is becoming a focal-point for precious metals. China and India rank first and second respectively in the world in gold consumption. Asians clearly understand the value of gold and silver, and they are clamoring to get their hands on more of it.

WhyBuyGoldNowBanner.070815.590

Get Peter Schiff’s most important Gold headlines once per week – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning more about physical gold and silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!

 


Related Posts

The Air Is Coming Out of the Housing Bubble

The Fed has barely started raising interest rates but the air is already seeping out of the housing bubble. New single-family home sales plunged by 16.6% from March and were down 26.9% year on year. New home sales dropped to the lowest level since the lockdown in April 2020.

READ MORE →

Retailers Getting Hammered By Rising Costs

Retail sales have spiked over the last few months. You would think that would be great news for retailers, right? Not so fast.

READ MORE →

Surge in Government Tax Receipts Papers Over Federal Spending Problem

With a surge in April tax receipts, the federal government ran a record budget surplus last month. This seems like good news. And the mainstream spun it as such. But record government revenue is papering over a spending problem that isn’t going away.

READ MORE →

ETFs Add More Gold in April; Total Holdings Just Shy of Record

Gold-backed ETFs saw net inflows of gold for the fourth straight month in April. ETFs globally added 42.8 tons of gold to their holding, with Europe-based funds leading the way.

READ MORE →

Americans Are Using Plastic to Make Ends Meet as Prices Continue to Rise

Americans are feeling the pinch of inflation. Wages are up but consumers are worse off. Average hourly earnings have risen by 5.5% over the last year. But factoring in rising costs, real earnings are down 2.6%. So, how are Americans making ends meet? They’re charging it.

READ MORE →

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Call Now