Wednesday, May 18, 2016

Chinese bank to buy $90bn gold vault in London

Image Source.
Source - RT News

China's state-owned ICBC Standard Bank has agreed to buy a massive precious metals storage business from Barclays. The deal is expected to boost China's access to the London gold market.

The vault, one of the largest in Europe, is in a secret location in London that can store 2,000 tons of gold, silver, platinum and palladium. It was opened in 2012 by Barclays, which is now exiting the business as part of restructuring.

At current prices (about $1,300 per ounce) up to $90 billion worth of gold could be stored inside the London-based storage.

Related What Will The Global Economy Look Like After The ‘Great Reset'?

The world's biggest bank by assets, ICBC will become the first Chinese lender to own a vault in London. The bank intends to expand its role in the gold business and will gain more influence in trading, pricing and storage of precious metals. Last week, ICBC became a member of London's precious metals clearing system where trades are settled.

The purchase “enables us to better execute on our strategy to become one of the largest Chinese banks in the precious metals market,” said Mark Buncombe, ICBC Standard Bank's head of commodities, as cited by the BBC.

The deal is expected to be completed in July but no financial details have been released thus far.

Related China Discovers Undersea Gold Reserves Estimated at $16.4bn

China is the world's largest consumer of gold. According to Wells Fargo, the country now consumes about 40 percent of the gold mined around the world annually. Chinese imports of the yellow metal have surged over 700 percent since 2010.

Gold has been traded in London for over 300 years. About $5 trillion in transactions were handled in London's bullion market in 2015.

Stillness in the Storm Editor's note: Did you find a spelling error or grammar mistake? Do you think this article needs a correction or update? Or do you just have some feedback? Send us an email at sitsshow@gmail.comThank you for reading.


Sign-up for RSS Updates:  Subscribe in a reader

[Subscribe to Stillness in the Storm Blog by Email]
View and Share our Images
Curious about Stillness in the Storm? 
See our About this blog - Contact Us page.

If it was not for the gallant support of readers, we could not devote so much energy into continuing this blog. We greatly appreciate any support you provide!

We hope you benefit from this not-for-profit site 

It takes hours of work every day to maintain, write, edit, research, illustrate and publish this blog. We have been greatly empowered by our search for the truth, and the work of other researchers. We hope our efforts 
to give back, with this website, helps others in gaining 
knowledge, liberation and empowerment.

"There are only two mistakes one can make along the road to truth; 
not going all the way, and not starting." - Buddha

If you find our work of value, consider making a Contribution.
This website is supported by readers like you. 

[Click on Image below to Contribute]

Support Stillness in the Storm

Sign up for Gaia TV

Sign up for Gaia TV
By signing up through this link you also support SITS