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

The Outlook for Gold in 2020 Remains Bullish

Gold had a strong year in 2019 and a World Gold Council report says the outlook for 2020 remains bullish. We expect that many of the global dynamics seeded over the past few years will remain generally supportive for gold in 2020.” Gold charted its best year since 2010 last year. The price increased by […]

READ MORE →

Spending Us Into Oblivion: Federal Budget Deficit Tops $1 Trillion in 2019 Calendar Year

The US federal government ran a budget deficit of over $1 trillion in the 2019 calendar year. It was the first budget deficit over $1 trillion in any calendar year since 2012 — in the midst of the Great Recession. The budget shortfall from January through December totaled $1.02 trillion, according to the latest report issued […]

READ MORE →

Holdings in Gold-Backed ETFs Grew 14% in 2019, Hit All-Time Highs

Net inflows of gold into gold-backed ETFs came in at 400.3 tons in 2019, according to data released by the World Gold Council. ETF gold holdings grew by 14% last year and finished at 2881.2 tons. Overall, global gold-backed assets under management grew by 37% in US dollars due to positive demand and an 18% […]

READ MORE →

Central Banks Continue “Remarkable” Gold-Buying Spree

Central banks continued their remarkable gold-buying spree in November and remain on pace to eclipse 2018’s near-record purchases. According to the latest numbers from the World Gold Council, central banks added 27.9 tons on a net-basis to official gold reserves in November. That brings the yearly total for 2018 with one month left to calculate […]

READ MORE →

A Shocking Numbers of Americans Live Paycheck to Paycheck

We’re told that this is the greatest economy in history. Stock markets are surging. Unemployment is low. And yet despite the good times, a shocking number of Americans live paycheck to paycheck. Several surveys cited by MarketWatch reveal the precarious financial situation many Americans find themselves in. This is less than ideal in an economy […]

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