Bank of England’s Gold-Diggers Grapple With Trump-Fueled Frenzy.

Every day in London, thousands of commuters on the Central Line take a subterranean detour around the Bank of England’s vast underground vaults, bringing them as close as they’re ever likely to get to the $500 billion of gold the bank holds on behalf of nation states, commercial banks and other financial institutions. Tube trains come so close that staff inside sometimes report hearing a dull hum as they pass.

The security of the vaults — proven over centuries — and how cheap it is to store gold there, relative to the commercial vaults that make up the rest of the London gold market, mean that holders rarely shift their bullion. But now, they are moving gold out at the fastest rate in over a decade. More than 20 million troy ounces, worth about $60 billion, have entered the depositories of New York’s Comex exchange since the day of the US presidential election, with much of it originating from the London gold market — the world’s largest.

The physical moves have become the talk of the market, where gold prices are hovering just below a record high of $3,000 a troy ounce. The rally — which has seen US gold prices rise faster than anywhere else — has in part been driven by concern that Trump’s America-first economic policy could weigh heavily on global growth.

Source: FINANCE.YAHOO