China has just boosted its reach to London's gold market, as the state-owned ICBC Standard Bank has agreed to buy the precious metals storage business from Barclays, which includes a state-of-the-art storage facility in London, according to a report on CNN.
While the financial details of the sale were not disclosed, the report says the "vault is in a secret location in London, and can store 2,000 tons of gold and other precious metals.
For Barclays, the deal is part of a restructuring effort to make the bank leaner and more focused, while the Chinese bank could easily service its Western clients by having a vault closer to store precious metals.
"London is the world's largest wholesale over-the-counter gold market by trading volume, with estimated $5 trillion worth of gold trades cleared there every year. The precious metal has been traded in London for over 300 years," the report added.
Interesting fact that China produces more than a quarter of global gold demand. That's why there is a question - why some states refused from gold and sharply reduce gold reserves, and another states vice versa try to increase their gold reserves. Also I think everyone knows that George Soros claimed about his interest in gold.
And what about your thoughts about this situation, who will win from such deals?
While the financial details of the sale were not disclosed, the report says the "vault is in a secret location in London, and can store 2,000 tons of gold and other precious metals.
For Barclays, the deal is part of a restructuring effort to make the bank leaner and more focused, while the Chinese bank could easily service its Western clients by having a vault closer to store precious metals.
"London is the world's largest wholesale over-the-counter gold market by trading volume, with estimated $5 trillion worth of gold trades cleared there every year. The precious metal has been traded in London for over 300 years," the report added.
Interesting fact that China produces more than a quarter of global gold demand. That's why there is a question - why some states refused from gold and sharply reduce gold reserves, and another states vice versa try to increase their gold reserves. Also I think everyone knows that George Soros claimed about his interest in gold.
And what about your thoughts about this situation, who will win from such deals?
