International gold trading impaired – major banks need a solution

Gold bars can no longer be moved freely between the major gold centers in the wake of the Corona crisis. According to Reuters, the big banks are working on emergency solutions for the transport, storage and clearing of gold.

 

Gold bottleneck

The global quarantine measures in the wake of the corona pandemic also have a significant impact on gold trading among large banks. Large refiners have ceased operations, including major refiners such as Argor-Heraeus, Valcambi and PAMP from Switzerland, the Rand Refinery from South Africa and the Royal Canadian Mint in Canada. Due to the disrupted air traffic, gold can no longer be easily transported over longer distances, and London and New York are now also concerned about smooth access to the large gold safes.Large banks also affectedThe Reuters news service reports that the major bullion banks obviously want to expand the warehouse network in order to maintain international gold trading. London is the world’s largest gold hub. New delivery locations (countries) for the physical metal could now be agreed, such as Switzerland or Singapore (our guess). A final decision has not yet been made.