EXOGEN: The world's biggest bank just bought a 'secret' gold vault in London
Business Insider By Elena Holodny May 17, 2016 7:54 PM
The world's biggest bank by assets just bought a secret gold vault in London.
China's ICBC Standard Bank agreed to buy one of Europe's largest gold vaults from Barclays, according to Bloomberg.
The deal is expected to be completed in July, although no additional financial details were given.
The vault is in a "secret" location and can hold up to 2,000 metric tons of gold, silver, platinum, and palladium. It was opened by Barclays in 2012.
The BBC reports that ICBC Standard Bank's head of commodities, Mark Buncombe, said that buying the vault "enables us to better execute on our strategy to become one of the largest Chinese banks in the precious metals market."
Notably, China's appetite for gold seems to have grown over the last few months.
In April, the country launched a gold-price benchmark in order to have greater influence over the price of the commodity, according to the Financial Times. This could eventually reduce the influence of the London gold price, wrote the FT's Henry Sanderson.
Moreover, the World Gold Council reports that inflows into gold-backed ETFs in China have risen "exponentially" in recent months.
"Although they still only account for a very small proportion of the 1,974t held in these products globally, Chinese gold-backed ETFs on aggregate attracted 11.1t of inflows during the first quarter, more than doubling their holdings in the process," according to the WGC
ICBC to be first Chinese lender to own London vault
China's ICBC Standard Bank, the world's biggest bank by assets, has agreed to buy a massive vault in London.
It will be the first Chinese lender to own a vault in London as it looks to grow its precious metals business.
The vault, which is in a secret location and is being sold by Barclays, can hold up to 2,000 metric tons of gold, silver, platinum and palladium.
The deal will give ICBC more influence over trading, pricing and storage of precious metals.
No financial details were given but the deal is expected to be completed in July.
China accounts for more than a quarter of global gold demand but trading of the yellow metal remains centred out of London and New York. Around $5tn (£3.5tn) in transactions were handled in London's bullion market last year
EXOGEN: EXTREMELY INTERESTING, ESPECIALLY WITH THE NEW LONDON FIX IN SHANGHAI GOING LIVE APRIL 20, AND THE NEW CURRENCY OF CHINA BEING 100% BACKED BY GOLD.........................
Texas Is About to Build a Gold-Backed Bank
(TDS) Last year Texas Governor Gregg Abbott signed HB 483, allowing the creation of the Texas Gold Depository. “With the passage of this bill, the Texas Bullion Depository will become the first state-level facility of its kind in the nation, increasing the security and stability of our gold reserves and keeping taxpayer funds from leaving Texas to pay for fees to store gold in facilities outside our state,” he said last June.
This gold bank would allow Texas to recover the gold that it has stored in New York vaults, and give Texan citizens and institutions a chance to store their gold in the facility, and open checking and savings accounts that would be valued in gold rather than dollars. This even opens the possibility of making gold transactions electronically for the very first time.
Now several companies are offering competing plans to build the depository, including Brinks, Anthem Vaults, and Texas Precious Metals. TPM wants to create a sprawling 46,000-square-foot facility with 12-inch concrete walls. Brinks would utilize a series of preexisting vaults that they own and operate in Texas, while Anthem vaults would build “multiple vaulting locations throughout Texas to enable all Texans access to their bullion within a reasonable distance from their homes.” They wold also set up coin shops that could accept deposits on behalf of the vault.
According to Representative Giovanni Capriglione, the original sponsor of HB 483, “I am optimistic that the depository will be up and running at the end of this year or the beginning of next year.” What isn’t being said by the original proponents of this idea, is that it would give Texans a solid alternative to the Federal Reserve banking system and the US dollar. And should the dollar ever lose its global reserve status, Texas will be in a financial position that is far more resilient than the rest of the country.