The Bank of England, which typically holds gold for financial institutions, other central banks, and the UK Treasury, is currently facing significant delays in gold withdrawals. Normally, if you wanted to withdraw your gold, you’d expect it within a few days. However, due to a surge in gold shipments to the United States, driven by fears of potential tariffs under President Trump’s administration, withdrawal wait times have now extended to four to eight weeks.
This rush for gold in New York has resulted in a shortage of bullion in London. To cope with the demand, market players in London are scrambling to borrow gold from central banks. The Bank of England, which isn’t meant to act like a commercial vault, is struggling to meet the increased demand for gold withdrawals.
Countries storing their gold in London are understandably worried. Although the Bank of England is supposed to have about 5,000 metric tonnes of gold, the current delays have led to speculation that the bank may have effectively halted deliveries or even defaulted. The logistics of moving large amounts of gold from Europe to the U.S. are adding to these pressures.
Sources:
New York is now draining London’s vaults.
The Bank of England holds gold for:
1. Financial institutions
2. Other central banks
3. The UK TreasuryYet, withdrawal wait times now stretch for weeks.
How do you think the countries storing their gold there feel?
— Gold Telegraph ⚡ (@GoldTelegraph_) January 29, 2025
“Wait to withdraw bullion from BoE rises sharply as fears of Trump tariffs drive shipments to US…”
Source: https://t.co/iOq2QZYT0n
— Gold Telegraph ⚡ (@GoldTelegraph_) January 29, 2025
The @bankofengland is on the ropes as it has de-facto halted delivery of gold or defaulted. They are supposed to have about 5k metric tonnes but are making buyers wait 4 to 8 weeks for delivery instead of a few days. #BOEDefault pic.twitter.com/3NJSVtJZMu
— maneco64 (@maneco1964) January 29, 2025
Not a conspiracy theory anymore! @KingKong9888 pic.twitter.com/HLmRHh7nTA
— maneco64 (@maneco1964) January 29, 2025
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