Shortage of 400ozt gold bars leads to rare London premiums

Welcome to the Precious Metals Bug Forums

Welcome to the PMBug forums - a watering hole for folks interested in gold, silver, precious metals, sound money, investing, market and economic news, central bank monetary policies, politics and more. You can visit the forum page to see the list of forum nodes (categories/rooms) for topics.

Why not register an account and join the discussions? When you register an account and log in, you may enjoy additional benefits including no Google ads, market data/charts, access to trade/barter with the community and much more. Registering an account is free - you have nothing to lose!

pmbug

pmbug

Your Host
Administrator
Benefactor
Messages
15,951
Reaction score
5,515
Points
268
Location
Texas
United-States
The London bullion market has seen intermittent shortages of 400-ounce bars, traders in the City told FastMarkets, pushing premiums for physical delivery for these large bars as high as 50 cents.

This shortage may have been driven by several factors, including a scramble for physical delivered material after the end of the year and reduced availability due to good delivery bars flowing from London to the Far East, they suggested.

“There is a shortage of big bars, especially good-delivery 400-ounce bars,” Bernard Dahdah at Natixis said. “One part of the problem is that large quantities of these bars that have come from ETFs, have now been moved to be re-refined into three-nines bars of smaller sizes and are therefore no longer available to the London market.”
...
Click to expand...

http://www.fastmarkets.com/gold-news/69679-0-en

Note that the shortage is in bars that meet the 400ozt good trading size specification. They apparently have other sized bars.
 
Interesting quote from that article...
"I believe we are seeing people starting to want physical delivery and paying a premium to do so."
 
You must log in or register to reply here.
Back
Top Bottom