the booming trade in gold bars

The stoves turn 24 hours a day in the Argor-Herreus processing plant in the south of Switzerland, punctually poured freshly from the gold bar.

The processing plant has never been complicated, according to the executive Robin Collvenbachi, and the foundry is working around 24 days to maintain the mass demand of 1 kg. gold Bars in New York.

“The demand has grown quite grown,” Kolwabach said. “Usually a period of time would take a period of one or two weeks. But at the moment, we have a peak demand, which lasted for more than three months, is quite unusual. “

Since December, US President Donald Trump can slap the goal import tariffs, bringing the market to the market and the record wine on Friday helps record a record. More than $ 61 billion in the Gianthorn fled to the United States, as traders roared to avoid possible colleagues, distorting the country’s commercial data and Causes shortage in Londonthe world’s largest gold trading node.

The American Gold Rush is very busy keeping Kolvenbach thanks to the quirks in global bars. Both markets use different sized bars. Most of the trade in London is 400-troy-ounce bars, each weighs about 12.5 kg and approximately brick size.

The exchange of the New York Comex, unlike, uses 1 kg of smartphones 1 kg of bars as its benchmark. This means that the bars who pass by Atlantic must first stop in Switzerland, the home world’s largest golden recycling factories have melted and transformed.

In a world where the second is ping’s financial transactions in the ping, the murmur traction emphasizes the rely on the gold market on the same metal. In normal times, there are billions of dollars in gold, which are sold without vaulting rods.

But the distortions created by Trump’s radical trade policy have been tense on the system. Although Trump has never mentioned the tariffs of bars, the small opportunity he can do was increasing the price of the highest future in the United States than in London, creating an arbitration opportunity.

The last time when the significant gap in prices opened was in the early stages of the epidemic. But in New York, the gold muscle has now surpassed even its previous, Soviet-era record.

“The physical nature of gold is something that is underestimated, particularly a bunch of people who trade in their flourishing all day. “Gold has financial characteristics, but it is also physical active.”

Liquidity crisis

The trip to the gold bars flowing in New York usually starts in a deep underground, one of the nine golden gas reserves below the Bank of England in the heart of London.

When an order is placed to remove gold bars, the employee will enter the vaults and “digging” gold, which can often be involved around other bars to find other bars in order. Because London is built on clay, the soft foundations of the Boe Builation mean that gold can only put on shoulder height.

The process is very time consuming and has led to the largest supply chain barrier for 1 kg of bars. The gold digging personnel should be raised, carefully prepared, and it is strong enough to raise gold bars all day to make short-term demand to meet.

The first signs of the fee emerged in early December, when industry figures gathered during the dinner at the National Gallery in the National Gallery and discussed the growing demand for the United States.

As traders who have been taken from London to New York from London for more than four weeks, causing the liquidity crisis in the London bolt market.

Creative rental for gold shot Post levels: Last month, because traders struggled their hands on physical metal, raising the cost of working capital for business such as processing and jewelry manufacturers.

“Bowie Governor Dave Rampselen admitted at a press conference in February, in which he acknowledged that he entered a truck in the Bouley yard earlier. “Gold is physical active, so there are real logistical restrictions and security restrictions.”

Bown is held on behalf of dozens of central banks, as well as on behalf of commercial banks. Only 6% of gold belong to the Great Britain’s treasury in its large stores.

London’s pre-election position in physical gold markets, despite the role of New York, as the main future trading hub, partly reflects BOE charges. But it also emphasizes the overwhelming importance of trust in the gold market. Investors and central bankers are happy to park their gold in which they are standing due to the record.

“London has a historic advantage, the hands down, and it returns to the Golden Standard, which works very well, from the end of the Napoleonic war to the First World War. “There is a long legacy from Great Britain and England.”

“Black Swan event”

When they leave the Boe Vaulds, the bars usually load in the armored vehicle, drive to the Heathrow Airport and go to the belly of the Zurich passenger plane. For the reasons of the insurance, passenger planes carry only 5 tons of gold at once.

Zurich from Yurich is pushed to a recycling plant where it melts and transforms before returning to the US. According to the World Gold Color, the value of all this travel between London and New York, including transportation and transformation.

Inside the Argor-Herreus processing plant, located in the city of Molhiso near the Italian border, large gold bars are melted and transformed into a long zone of the “continuous casting” car. Because 400 ounces are already “delicate gold”. Referring to the 99.99% of the inclination of the investment-ranking bars. They don’t need to be subsequently reset.

To do this, the gold layer from the casting machine is cut into pieces that are about one kilogram. After the weight adjustment, it melts again, filled with one kilogram mold, then frozen, sealed and polished.

Walking on the bottom of the founders, Collvenbach mentions where two employees fill a kilogram in kilograms in the adjacent furnaces.

Although the recycling plant is much more than the transformation. It also requires rough bars from mines and eliminates them with gold, silver and other metals, as well as manufacturing jewelry and run the mint, which stamps the small golden rods. Kolvenbach explains that some of the most important works of the building take place in his lab, which thoroughly tests every bar arriving in the facility.

Here, the liquidity crisis in a wider gold market inside the processing plant has had a painful effect, the prices of gold rental taken in the short term. In order to reduce the requirements of capital capital and to avoid the impact of gold price fluctuations, the recycling usually leases most of the gold on which the factory works. The sudden increase in rental rates this spring has sharply increased operating expenses in Armed Forth and other processing factories.

Kolvenbach said it was a “black swap event”, which completely changed its cost base. “It simply came to our notice then for the entire industry, because in the end everyone influences,” he said. Although the rental rates dropped from their peak, they are still about three times higher than normal levels.

People in industry offer various explanations why New York and London use various gold bars for their contracts.

“It makes sense. No, “said Kolwabach. “I had the same question myself. Frankly, I have never found a proper explanation. “

Comex tried to start a futures contract for the large 400 ounces of rods during the epidemic, but it didn’t leave.

Lamb’s CEO Ruth Croel said that markets will ideally use the same size bar in the future. “I would like to think that after all this, we all agree that London and New York should look at the good horse and size,” he added.

However, the system mainly continues due to inertia, argues.

“It simply came to our notice then for everyone involved in this process, whether it was recyclers, regardless of whether it is freighting, whether they are ready to risk them in New York,” he said.

Today, as the fears of gold tariffs are decreasing, the flow of gold is slowing down to New York. If Trump’s protective force avoids precious metals, traders expect to reverse the flow as a “golden eye” long-term storage costs.

When it happens, Swiss Good stoves will turn off around the clock again.