America's Appetite for Gold is ‘Sucking' Bullion Out of Other Countries

SEATTLE (Scrap Monster): More than 600 tons, or almost 20 million ounces of gold, has been transported into vaults in New York City since December last year, according to data provided by the World Gold Council.

The threat of tariffs on gold has spurred U.S. banks, investors and traders to shift the precious metal into the Commodities Exchange Centre and other vaults in New York, when it would otherwise usually be stored in London.

"Supply chains have been disrupted because of this huge sucking sound, which has been the United States importing gold ahead of the potential tariffs," said the World Gold Council's John Reade.

Strong U.S. demand for gold is "sucking" bullion out of some countries as traders try to stockpile it before U.S. President Donald Trump's tariffs on Canada and Mexico kick into high gear.

There's a "glut of gold" in New York's vaults, Adrian Ash, BullionVault's director of research, told CNBC.

More than 600 tons, or almost 20 million ounces of gold, has been transported into the city's vaults since December last year, according to data provided by the World Gold Council. That amount of gold doesn't normally belong in New York, said John Reade, World Gold Council's market strategist for Asia and Europe.

"You only keep it there when extraordinary circumstances are happening," Reade told CNBC.

The threat of tariffs on gold has spurred U.S. banks, investors and traders to shift the precious metal into the Commodities Exchange Centre and other vaults in New York, when it would otherwise usually be stored in London.

"There are concerns that imminent tariffs on Canada and Mexico will affect both gold and silver," said Nicky Shiels, head of metals strategy at MKS Pamp. 

 Courtesy: www.nbcphiladelphia.com