London is struggling with an unprecedented gold scarcity now that traders are moving their supplies to the United States en masse. The sudden gold flight has led to long waiting times and rising rates in the British capital, while the safes in New York protrude. The cause? Traders try to bypass import duties from the US government.
London in Panic: Gold delivery delayed
The gold trade in London is upside down. Where orders are normally processed within a few days, waiting times now run up to eight weeks. The Bank of England (BOE), which was previously known for its punctual deliveries, can no longer keep up with the demand. According to precious metal expert Philip Newman from consultancy firm Metal Focus, the gold price has risen by 12% in a short time, partly due to the sudden movements of stocks to the US.
New York benefits from Goudstroom
While London is struggling with shortages, stocks in New York are rising explosively. Since the American elections in November, the gold supply there has increased by 75%. 926 tons of gold is now stored on the Comex Commodity Exchange, a level that has not been reached since the summer of 2022. The total value of the stored gold in the US is now $ 82 billion.
The massive influx has to do with the speculation that President Donald Trump wants to introduce import duties on gold. Traders want to secure their gold and benefit from the higher rates in New York. “Participants in the Goudmarkt try to protect themselves,” says Michael Haigh of Société Générale. In addition, gold in New York is currently more lucrative, so that traders sell their stocks there for a higher price.
Impact on the global gold trade
The situation in London and New York shows how quickly the gold market can change due to geopolitical and economic factors. With the threat of import duties and the strongly fluctuating question, it is uncertain how long this trend will last. For the time being, New York seems to be the big winner, while London has to deal with delivery problems and rising prices.
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Source: https://newsbit.nl/goudvlucht-naar-new-york-handelaren-verplaatsen-massaal-goud-uit-londen/
