Due to uncertainty surrounding Trump’s trade war, traders have removed 8,000 bars from vaults.
Since the end of last year, thousands of gold bars have been removed from the Bank of England’s vaults amid concerns about the effects of Donald Trump’s trade war.
Threadneedle Street reported that roughly 8,000 bars have been withdrawn in recent months, accounting for about 2% of its total reserves.
Sir Dave Ramsden, a deputy governor at the Bank, explained that the institution had been flooded with withdrawal requests after gold prices on New York’s futures market spiked above the London cash price.
The waiting period for withdrawing bullion from the Bank’s vaults has increased from a few days to several weeks as traders rush to exploit price discrepancies.
There is also growing concern among traders that the US president might impose new tariffs on bullion as part of his trade war.
Sir Dave stressed that while the Bank can fulfill all withdrawal requests, the logistical challenges of moving bullion both out of the Bank and across borders inevitably cause delays.
He mentioned that most of the Bank’s delivery slots are already occupied by regular customers. “If you’re new to us, you might have to wait a bit longer because all the current slots are booked,” Sir Dave explained.
He added, “This is a very orderly process. It’s important to remember that, unlike many other markets, gold is a physical asset, which brings real logistical and security challenges.
The Bank holds over 400,000 gold bars, mostly on behalf of other central banks and gold dealers. Additionally, the UK’s gold reserves are stored there for the Treasury.
Last month, Andrew Bailey, the Bank’s Governor, expressed that he remains unfazed by the rising demand for bullion withdrawals. He remarked, “London remains the major gold market in the world. If you’re active in that market and wish to trade or utilize your gold, you truly need to have it in London.”
