A “shortage” of gold at the Bank of England? Sounds more like a quiet default.

Sharing is Caring!

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.

See also  The World's First 1/3 oz Gold Britannia Coin

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:

See also  Gold in euros holds firm at €2,600 support, setting stage for a potential surge. China's gold accounts could drive further accumulation in global markets.

https://www.livemint.com/market/stock-market-news/donald-trump-tariff-concerns-drive-gold-rush-to-new-york-draining-london-reserves-11738169902010.html

https://www.usnews.com/news/top-news/articles/2025-01-29/london-gold-market-queues-up-to-borrow-central-bank-gold-after-big-shipments-to-us-sources-say

https://deepnewz.com/britain/gold-shipments-to-u-s-cause-shortage-london-bank-england-wait-times-extend-to-8fe203e9


158 views