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

Chinese Bank Buys Huge London Gold Vault Expanding Influence on World Gold Market

  by    0   1

China is serious about gold and continues to expand its influence on the world gold market.

icbc

On Monday, China’s largest bank announced the purchase of one of Europe’s biggest gold vaults. Reuters reported the sale:

ICBC Standard Bank is buying Barclays’ London precious metals vault, giving the Chinese bank the capacity to store gold worth more than $80 billion in the secret location. The vault is one of the largest in Europe, with a capacity to hold 2,000 tons of gold, silver, platinum and palladium. It has been operational since 2012. ICBC Standard Bank said on Monday it has signed an agreement to buy the vaulting business and transfer the associated contracts, subject to consent. The deal is expected to complete in July.”

Subscribe to Peter Schiff’s Gold Videocast

This is the second massive London vault ICBC Standard Bank has acquired this year. In January, it purchased the lease on Deutsche Bank’s huge London gold and silver vault.

ICBC Standard Bank’s head of commodities Mark Buncombe told Reuters the deal is part of the bank’s plan to become one of the largest Chinese banks in the precious metals market. Last week the bank announced it had joined the London clearing system for gold, silver, platinum, and palladium. It’s the first bank to be admitted to the elite group since 2005.

Mark O’Byrne, director at Dublin-based brokers GoldCore, told the Wall Street Journal the move makes sense for the bank:

London being the place where a lot of the bullion is traded, especially from an institutional perspective, it makes sense for them. Some people, particularly Western buyers, might be more inclined to have their gold stored in London than have their gold stored in China.”

These recent developments are another sign that gold is shifting to the West to the 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.”

The Chinese clearly understand owning gold means economic power and they are making themselves an integral part of the world gold market at a rapid pace.

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

Another Month, Another Huge Budget Deficit

The US government ran another huge budget deficit in April. The shortfall came in at $225.58 billion, running the total budget deficit through the first seven months of fiscal 2021 to a record $1.9 trillion, according to the Treasury Department’s Monthly Treasury Statement. That compares with a $1.5 trillion deficit through the first seven months […]

READ MORE →

Gold Demand in the Tech Sector Up in Q1

Gold demand in the technology sector was up 11% year-on-year, coming in at 81.2 tons in the first quarter of 2021. According to the World Gold Council, the strong growth was partially due to comparison with relatively weak tech demand in the first quarter of 2020, as governments began shutting down economies in response to […]

READ MORE →

Job Openings Hit Record High as Unemployment Persists

America’s labor market is a mess and riddled with incongruency. On the one hand, businesses can’t find workers. Help wanted signs hang in windows across the country. A McDonald’s franchisee in Tampa is offering bonuses just for showing up for an interview. Meanwhile, unemployment just ticked up to 6.1%. In what kind of world does […]

READ MORE →

Jim Grant: The Fed Can’t Control Inflation

Federal Reserve Chairman Jerome Powell insists inflation is “transitory.” As prices have spiked throughout the economy, Powell’s messaging has essentially been, “Move along. Nothing to see here.” Peter Schiff has been saying the central bankers at the Fed can’t actually tell the truth about inflation because even if they acknowledge it’s a problem (and it […]

READ MORE →

America’s Trade Surplus in Services Shrinks as Trade Deficit in Goods Balloons

Americans consume goods other people produce. As America offshored its manufacturing, it promised to supply the world with high-priced services and technology in exchange. But as it turns out, that promise never materialized. The ballooning overall trade deficit bears this out. It leaped to another record high in March, surging 5.6% month-on-month to a new […]

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