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Rush to stockpile gold in New York leads to London shortage
By Leslie Hook
Financial Times, London
Wednesday, January 29, 2025
A surge in gold shipments to the United States has led to a shortage of bullion in London, as traders amass an $82 billion stockpile in New York over fears of Trump administration tariffs.
The wait to withdraw bullion stored in the Bank of England's vaults has risen from a few days to between four and eight weeks, according to people familiar with the process, as the central bank struggles to keep up with demand.
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"People can’t get their hands on gold because so much has been shipped to New York, and the rest is stuck in the queue," said one industry executive. "Liquidity in the London market has been diminished."
The Bank of England declined to comment.
Since November's U.S. election, gold traders and financial institutions have moved 393 metric tonnes into the vaults of the Comex commodity exchange in New York, driving its inventory levels up nearly 75% to 926 tonnes, the highest level since August 2022.
Total gold flows into the U.S. could be far higher than the Comex numbers reflect, according to market participants, because there are likely to have been additional shipments to private vaults in New York owned by HSBC and JPMorgan. The two banks declined to comment.
Traders say the shipments are intended to avoid tariffs on bullion that some fear could be introduced by President Donald Trump. ...
... For the remainder of the report:
https://www.ft.com/content/86a5fafd-603e-4ee1-9620-39b5f4465f53
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