Bank of England delaying gold deliveries 4 to 8 weeks

London gold market queues up to borrow central bank gold after big shipments to US, sources say​

London bullion market players are racing to borrow gold from central banks, which store bullion in London, following a surge in gold deliveries to the United States on speculation of potential import tariffs there, two sources familiar with the matter said.

The minimum waiting time to load gold out of the Bank of England, which stores gold for central banks, has reached four weeks, one of the sources said. In normal times, the release time is a few days or a week.

The BoE declined to comment when asked about the queue.
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"The key with the BoE is that they are not a commercial vault so not prepared to handle the onslaught of gold borrowing banks are requesting from the central banks," said Robert Gottlieb, an industry expert and former head of precious metals at Koch Supply and Trading.

The size of so-called Loco London free float, the amount of gold readily available to the London OTC market stored in London, has fallen after the jump in supplies to New York.
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The London Bullion Market Association (LBMA) said on Thursday it is liaising with CME Group and US authorities on the significant premium of COMEX gold to the London market.
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Global bullion banks are flying gold into the United States from trading hubs catering to Asian consumers, including Dubai and Hong Kong, to capitalize on the unusually high premium that U.S. gold futures are enjoying over spot prices.
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"Gold prices are skyrocketing, and in Asia, demand has pretty much disappeared," said a Singapore-based bullion dealer with a leading bullion supplying bank. Spot gold prices hit a record high on Monday.
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The cost of moving gold from Asian hubs to the U.S. is fractional when compared with prevailing Comex premiums, said a Mumbai-based bullion dealer.

A leading bullion bank even moved gold stored in a customs-free zone in India to the U.S. last week, he said.

In normal situations, many banks bring gold into India and keep it in customs-free zones, clearing consignments by paying import taxes only after realizing demand. They can move the cargo back overseas without paying taxes.

As retail demand in Asian markets was muted by high prices, bullion banks were even sourcing gold from refiners in Dubai, which usually serve as a major India-supplying hub, to cater their demand in the U.S, said a Dubai-based bullion dealer.

"The U.S. is like a gold magnet right now, pulling in gold from all over the world," he said.

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A 25% tariff on gold imported from Mexico or Canada will therefore add $700 per oz to the international gold price, assuming a $2800 gold price, and leave the final price post tariff at a staggering $3500 per oz. All of this is also taking place in an environment in which gold prices have yet again reached , with a highest daily close and a highest monthly close registered on the last day of January.
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... together Mexico and Canada accounted for 80% of all US silver imports. This is a staggering figure and shows how dependent the US is on silver from Mexico and Canada. Imposing a 25% import tariff on Mexican and Canadian silver imports is going to affect the US silver sector in a massive adverse way.
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pmbug said:

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Bill Holter: The Financial Disruptors Vs Precious Metals​

nickndfl said:

Watch the prices of 1/10 gold coins and 20 francs.

Just over a year ago I was buying any 1/10th gold coins under $200 each. I was also bottom fishing for.any 20 francs under $375.

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