London is facing a gold shortage, with traders waiting weeks for bars from the Bank of England to be shipped to New York amid fears of tariffs under the new US administration. The US has seen a surge in gold imports, with stockpiles reaching $82 billion, last seen at the start of the COVID-19 pandemic.
The Bank of England holds commercial gold for banks and central banks, stored in nine underground vaults in London. However, waiting times to retrieve this gold have skyrocketed, from a few days to four weeks, according to Reuters and Financial Times reports. This has led to concerns over liquidity in the London market.
Industry executives attribute the shortage to Trump’s rhetoric on tariffs, with traders moving 393 metric tonnes of gold into the Comex exchange in New York since his election victory. The US has seen a significant increase in gold imports, sparking fears that monetary metals may become subject to tariffs.
Bank of England Governor Andrew Bailey downplays concerns, stating that London remains the major gold market and investors need their gold in the city. However, this underlines changes in investor behavior since Trump took office, with European automakers exploring options to move production to the US to avoid tariffs.
The situation highlights the impact of global economic policies on commodity markets, particularly gold. As the situation unfolds, it will be crucial to monitor developments and their potential implications for investors and traders worldwide.
Source: https://fortune.com/europe/2025/01/31/waiting-time-get-gold-out-bank-england-reportedly-octupled-trump-tariff-threats-spark-exodus-us