The bullion banks have to “borrow” gold from the central banks in order to meet deliveries?! pic.twitter.com/jms76x0jKo
— Chris Marcus (@ArcadiaEconomic) January 30, 2025
GOLD STOCKPILING in NEW YORK
https://reuters.com/world/uk/london-gold-market-queues-up-borrow-central-bank-gold
https://ft.com/content/86a5fafd-603e-4ee1-9620-39b5f4465f53
Gold stockpiling in New York leads to London shortage
by Leslie Hook
“A surge in gold shipments to the US has led to a shortage of bullion in London, as traders amass an $82bn stockpile in New York over fears of Trump administration tariffs. The wait to withdraw bullion stored in the Bank of England’s vaults has risen from a few days to between four and eight weeks, according to people familiar with the process, as the central bank struggles to keep up with demand. “People can’t get their hands on gold because so much has been shipped to New York, and the rest is stuck in the queue,” said one industry executive. “Liquidity in the London market has been diminished.”
Since November’s US election, gold traders and financial institutions have moved 393 metric tonnes into the vaults of the Comex commodity exchange in New York, driving its inventory levels up nearly 75 per cent to 926 tonnes — the highest level since August 2022. Total gold flows into the US could be far higher than the Comex numbers reflect, according to market participants, because there are likely to have been additional shipments to private vaults in New York owned by HSBC and JPMorgan. The two banks declined to comment.
It is absolutely astonishing to read this on Yahoo Finance.
The $4B in gold they discuss is the notional value of the 14,850 "deliveries" last night by the JPM House Account.JPMorgan Plans $4 Billion US Gold Delivery Amid Tariff Fears https://t.co/qLrkLPqb3c
— TF Metals Report (@TFMetals) January 31, 2025
Traders say the shipments are intended to avoid tariffs on bullion that some fear could be introduced by US President Donald Trump. “There is a feeling that Trump could go across the board and impose new tariffs on raw materials coming into the US, including gold,” said Michael Haigh, head of commodities research at Société Générale. “There is a bit of a scramble among participants in the gold market to protect themselves.” The shipments are also the result of higher prices on the futures exchange in New York than in the cash market in London. The unusual arbitrage opportunity has incentivised traders to send the metal across the Atlantic.
Trump has yet to spell out his trade policy and has not specifically mentioned a duty on bullion, although he has threatened to impose wide-ranging tariffs on US imports. Gold prices have risen 5 per cent since the start of the year, and are just $30 shy of their all-time record of $2,790 per troy ounce set in October. London and New York are two main global markets for trading, with most physical trading taking place in the UK, while the futures market is in the US.
Many market participants compare the current US gold rush with the situation during the Covid pandemic, when lockdowns and uncertainty over shipments of gold triggered a surge in stockpiling on Comex. The BoE stores gold for third parties such as financial institutions, as well as for other central banks and the UK Treasury. Governor Andrew Bailey played down the significance of the increased waiting times to remove gold from its vaults.
“London remains the major gold market in the world. If you are involved in that market and want to trade or use your gold, you really need to have it in London,” he said in response to questions from parliament’s Treasury Committee on Wednesday. Comex gold inventories have shot up 36 per cent this month, with 244 metric tonnes of inflows — the highest monthly inflows since May 2020, at the peak of the pandemic. Traders said they needed access to gold to fulfil certain futures contracts, which allow the buyer to take physical delivery of gold.
“The movement of gold needed to make its way into New York, that is basically what has been driving ‘stockpiling’,” said Joe Cavatoni, market strategist at the World Gold Council. “That is leading a lot of people to say, ‘we want to get ahead of it’, and that is driving the futures market into a premium.” However, Cavatoni said he was cautiously optimistic that the coming tariffs would most likely not apply to bullion. “We are not getting a sense from the rhetoric from the administration that it intends to go after the monetary metals,” he said. Last week, June contracts for physical gold on Comex traded at a premium of up to $60 per troy ounce over the London price. The difference has since fallen back to $10 per troy ounce as traders have moved gold to New York.”
Gold rose to a record high as investors flocked to safety after Trump reiterated threats to impose tariffs on Mexico and Canada https://t.co/QwJmN5HvtC
— Bloomberg (@business) January 31, 2025
GOLD SHORTAGES in LONDON
https://bloomberg.com/tariff-risks-are-fueling-a-chaotic-hunt-for-gold-in-london
https://moneymetals.com/repatriated-gold-reaches-historic-highs
Repatriated Gold Reaches Historic Highs
by Jan Nieuwenhuijs / December 5th, 2024
“The share of global official gold reserves not stored at the Federal Reserve Bank in New York (FRBNY) and Bank of England (BOE) in London has reached 78% in 2024, from 51% in 1972. The shift in this ratio appears to be accelerating and can be seen as a proxy for the West’s decline in financial dominance. “Gold is the bedrock of stability for the international monetary system,” wrote former President of the German central bank,
Jens Weidmann, in 2019. Not surprisingly, no national currency has ever become the world reserve currency without a substantial amount of precious metal supporting it. Before the U.S. dollar, the pound sterling was the world reserve currency. In the 19th century, a significant part of global commerce was transacted in sterling (backed by gold) and cleared in London. Central banks could redeem British pounds for gold and build their metallic reserves at the vault of the BOE in the most liquid gold market globally: London.
Bridgewater founder Ray Dalio warns of UK ‘debt death spiral’ https://t.co/B3zELZ8XY6
— FT UK Politics (@ftukpolitics) January 21, 2025
After the Second World War, the dollar officially took over from sterling during the monetary arrangement dubbed “Bretton Woods.” In the aftermath of the war, the U.S. had the largest gold reserves of all countries by far, assuring confidence in the currency issued by the United States. As trade was conducted primarily in dollars during Bretton Woods—which could be converted into gold at the Fed (acting as an agent for the Treasury)—countries with balance of payment (BOP) surpluses increased their gold reserves at the FRBNY vault. Many would rather own gold than dollars, especially as concerns grew (particularly by the French) that the greenback would be devalued due to America’s BOP deficit.
Trump tariff fears expose lack of existence of sufficient Bank of England gold inventories.
The entire London gold system is a game of musical chairs… -> https://t.co/nBJeGiAuBA pic.twitter.com/1Y1FWj2JYB
— Ronan Manly (@BullionBrief) January 29, 2025
Technically, the U.S. monetary gold is owned by the Treasury; the Federal Reserve itself does not own gold. Foreign central banks and official international organizations store gold at the New York Fed, no individuals or private sector entities. Data by the Federal Reserve System on its “earmarked” (custodial) gold does not reveal which entities make use of the vault. Total earmarked gold at the FRBNY reached an astronomical high of 12,711 tonnes in 1972. At that point, the BOE’s total gold holdings accounted for 8,364 tonnes.
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
The World Starts to Repatriate Its Gold
Countries were pressured by the U.S. not to redeem dollars for gold during Bretton Woods, which de facto ended in 1971. During the demise of Bretton Woods, New York lost some significance as a global gold market to the advantage of London and Zurich. Since the early 1970s, foreign central banks slowly began withdrawing metal from the Fed’s vault in lower Manhattan. In chart 2, we can see withdrawals accelerated in the early 1990s, which was likely due to selling by European central banks at the time. The BOE neither owns any gold, but it stores the U.K.’s monetary gold (owned by HM Treasury), foreign official gold reserves, and private gold by bullion banks. Sadly, the composition of official and private gold at the BOE is unknown.
For your information, the gold at the Bank of England is the only part of the London Bullion Market where everything is allocated. They can’t swap their way out of this. https://t.co/Zs1d7xZi56
— Jan Nieuwenhuijs (@JanGold_) January 29, 2025
So, in order to get a sense of how much gold official institutions store at the Bank of England, I have relied on research by Ronan Manly and Nick Laird from 2015 and extrapolated the numbers. Finally, as I have reported in recent months, the People’s Bank of China (PBoC) and the Saudi Central Bank (SAMA) are buying vast amounts of gold under the radar. In the case of the PboC, it buys extraordinarily large amounts of gold in the London Bullion Market and repatriates immediately, not to risk being denied access to its reserves like Venezuela and Afghanistan.
Central banks are ramping up gold purchases, with 40+ countries repatriating reserves from the NY Fed & Bank of England. The Bank of India just brought back 100 metric tons held since 1991. What do Judy Shelton, Cynthia Loomis, and gold revaluation have in common?
Find out here:… pic.twitter.com/ougaO395yh
— Andy Schectman – Miles Franklin Precious Metals (@MilesFranklinCo) January 28, 2025
As far as I can tell, outflows of foreign custodial gold at the Fed and BOE have stabilized in recent years, but there is no question the amount of gold held by the rest of the world within national borders has risen dramatically. Consequently, the amount of world official gold reserves not stored at the infamous vaults of the FRBNY and BOE has gone up to a historic high of 78%. Put differently, world official gold reserves (minus the gold owned by the U.S. and U.K.) stored in New York and London have reached a historic low of 22%.
THE LBMA IS BROKEN
(We didn’t need them anyway)Key Moments
0:00- Intro/ Mkts
4:45- London Gold Deficit
6:10- RTRS/ FT Coverage
7:23- LBMA Supply Chain
16:18- BNP Gets Bullish Gold
21:12- Trump Dresses Down Powell Again
24:15- Gold, Silver Charts pic.twitter.com/pg6VBhO8ZE— VBL’s Ghost (@Sorenthek) January 30, 2025
The West Is Losing Power
Not only is the West losing leverage over countries in the East as they repatriate gold, but non-Western countries are quickly catching up, relative to the West, by accumulating more gold. Based on calculations of how much Asian central banks keep off the record, my estimate is that non-Western countries (“rest of the world,” or ROW) possess 18,643 tonnes of gold versus 21,470 by the West. Pretty soon, the majority of official gold reserves will be owned by ROW (currently, ROW holds 46%).
Thank you, Andy @andrewmaguire1 “the Trump tariff threat is a negotiating posture” it’s being used as a cover-story for a shortage of bars in London in NYC because of BRICs removing bars for the last four years https://t.co/QR06fWZJDv
— Dave Kranzler (@InvResDynamics) January 31, 2025
Interestingly, the shift in the share of world gold reserves towards ROW is illustrative of global changes in economic and military power. As we are moving towards a more multipolar world, so too are global gold reserves distributed accordingly. As the saying goes, “Whoever has the gold makes the rules!” Eastern countries will implement rules not in favor of the greenback. They will likely be able to circumvent the dollar by trading in national currencies through Project mBridge and store surpluses in gold.”
A month by month gradual 2.5% universal U.S. tariffs plan would break the LBMA’s paper Gold & Silver suppression and kick-off physical #Gold and #Silver ‘s USD price revaluation…
This is not a joke. This is as real as it can get… pic.twitter.com/qa3ahQrVS6
— Eric Yeung 👍🚀🌕 (@KingKong9888) January 29, 2025
OUT of STOCK
https://zerohedge.com/something-extraordinary-taking-place-gold-vaults-below-manhattan
https://zerohedge.com/news/2025-01-30/lbma-cant-deliver-gold-supply-chain-breaks
LBMA Can’t Deliver Gold as Supply-Chain Breaks
by GoldFix / Jan 30, 2025
London’s bullion market is under strain. A surge in gold shipments to the U.S. has left traders scrambling to borrow from central banks, with wait times at the Bank of England stretching from days to weeks. The gold supply chain, long considered reliable, is now exposed to cracks that weren’t apparent before. The free float—gold available for immediate OTC trading—has declined after the wave of shipments to New York. Despite the logistics claims, many have said that this is just a good old fashioned stock-out.
Scott Bessent is brilliant & ruthless. If you’re conducting economic warfare, this is the 5 star general you want conducting Forex.
He was instrumental in collapsing the British pound in 1992 (Black Wed), 1997 Asian Financial Crisis & Japanese yen in 2013https://t.co/vYXt1guVkO https://t.co/JZ6TwfqCCm pic.twitter.com/sHxMzHqr0V
— Financelot (@FinanceLancelot) January 19, 2025
The Just-in-Time Model Breaks Down
For decades, bullion banks operated on the assumption that gold was always available. The system worked because gold isn’t consumed—it’s recycled, leased, and traded. When supply disruptions occurred, banks could borrow metal, cover their needs, and replace it later. That model is now failing. A new kind of buyer has entered the market: one that doesn’t see gold as a financial instrument but as money itself. Countries like China and Russia have spent years accumulating gold, prioritizing it over U.S. bonds. Their strategy has chipped away at the available leasing pool, leaving Western banks exposed.
Interesting response by Scott Bessent saying he recently became aware of the proposal launched by Howard Lutnick’s BGC Group for an exchange to clear US treasury futures at the London Clearing House overseen by the Bank of England. $CMEpic.twitter.com/93Uz5K6ruQ
— Mehdi Grayeli (@mehdigrayeli) January 17, 2025
The Musical Chairs of Gold Supply
Bullion banks relied on a game of musical chairs, borrowing gold to meet short-term needs. But when enough chairs are removed—when buyers refuse to lease their holdings—banks are forced to compete for an ever-dwindling supply. That’s what’s happening now. Central banks have been net buyers of gold, not just in emerging markets but in the West as well. Eastern European countries like Poland and Lithuania have ramped up purchases, further tightening supply. The once-abundant leasing market is drying up.
🧵1/8) On Thursday, 16 January hearings for Treasury Secretary nominee Scott Bessent produced a stunning revelation… pic.twitter.com/aNPdQymwV3
— Alex (Sasha) Krainer (@NakedHedgie) January 19, 2025
London’s Golden Milkshake Gets Drained: “There’s a billion ounces available.London’s Warehouses for argument sake. There’s a billion ounces there, but there’s only 300 million ounces available. The other 700 million ounces are owned by people who have no interest in leasing it. because they see what’s happening. You already have China, right? You have a big straw sucking the gold and silver out of Europe. It comes out of London, it goes into Switzerland, it gets earmarked and it goes to China. Now you have a new straw coming to the US for whatever reason you want it to be. For tariffs, but I believe it’s just a straight up repatriation of gold for Tier 1 purposes and the tariffs are a catallyst reason, if not a good cover for it all. We now have two straws draining the LBMA, the golden milkshake in London is just being drained by China and the US.”
CME Group CEO Terry Duffy expressed concerns about permitting trades of US sovereign debt futures under foreign jurisdiction. The practice has never before been approved in the US and is not allowed by any other major country https://t.co/ZQynntEcBj pic.twitter.com/pTOxAyAcNx
— Bloomberg TV (@BloombergTV) October 23, 2024
Gold Shipments to the U.S. Accelerate the Crisis
With London’s supply already strained, large shipments of gold to the U.S. are adding pressure. Whether the movement is driven by tariff concerns or broader repatriation efforts, the effect is the same: gold that was once part of London’s available float is being pulled out of circulation. China has long siphoned gold from European markets, refining it in Switzerland before shipping it east. Now, the U.S. is drawing from the same source, creating a dual drain on London’s reserves. As more gold moves across the Atlantic, London’s role as the center of the global gold trade is being tested. If bullion banks can’t secure enough gold through leasing, the next step is central bank intervention.
1/3
If the US defaults on its debt, will the Bank of England preside over our bankruptcy?Some disturbing hints in Scott Bessent’s recent confirmation hearing suggest the answer may be yes!
Hat tip, @NakedHedgie, @TFL1728, and @CryptoRichYThttps://t.co/ykiQ28AU8t pic.twitter.com/9kIJScEWbl
— Richard Poe 🇺🇸 (@RealRichardPoe) January 19, 2025
The G7 central banks may be forced to lease their gold to keep the system functioning. Mines may divert gold before it even reaches public markets. More countries may follow China’s lead, buying gold directly rather than allowing it to flow through exchanges. This is a policy shift reflecting Mercantile tendencies, where nations prioritize securing physical gold over participating in a globalized trading system. The bullion banks, long dominant in gold markets, are losing their grip as governments take direct control of supply and the pool of lease-able gold shrinks while World trust is broken making Gold’s newly reinstated Tier 1 status more important for trade than ever.”
PREVIOUSLY
MONETIZING DISSENT
https://spectrevision.net/2020/08/21/monetizing-dissent/
GOLD REMONETIZATION
https://spectrevision.net/2019/03/25/gold-remonetization/
MARKET SPOOFING
https://spectrevision.net/2018/11/27/market-spoofing/
PAPER GOLD
https://spectrevision.net/2017/12/01/paper-gold/
JUNK SILVER
http://spectrevision.net/2016/05/05/junk-silver/
BANKERS IMMUNITY
https://spectrevision.net/2015/05/28/bankers-immunity/
the LONDON GOLD FIX
https://spectrevision.net/2013/11/29/the-london-gold-fix/
ABOUT THAT “GOLD”
https://spectrevision.net/2013/04/25/about-that-gold/
the FAKE-GOLD STANDARD
https://spectrevision.net/2012/09/28/the-fake-gold-standard/