the booming trade in gold bars

The furnaces are roaring for 24 hours at the Argar-Herias refinery in southern Switzerland, falling from its mold to a newly poured gold bar.

According to co-chief executive Robin Kolvenbach, the refinery was never busy, and Foundry has been working around December to maintain massive demand for 1 kg Gold Bar in New York.

“Demand has increased a bit,” said Kolvenbach. “Usually the top demand runs for one or two weeks at a time. But at this point we have such a top demand, which lasted for more than three months, is quite unusual.

Since December, US President Donald Trump fears the tariff on gold imports – and on Friday, Troy ounce has helped the gold price more than $ 3,000 per gold. BUY BULIAN GIVED BUYS BUYS BUYS BUY ADDERS IN US SUPPORT SUPPORT SUBMLESS to Avoid Country Trade Data and Avoid Possible tariffs A deficit spread in LondonThe world’s largest gold trading hub.

American gold Rush has kept Kolvenbach very busy, thanks to a trick in the Global Boolean Markets: two markets use different sizes. In London, most of the trading is in the 400-Tro-ounce bar, each weight is about 12.5 kg and about a brick size.

New York’s Comx Exchange, in contrast, using 1 kg of smartphone-size bars as its criteria. That means the bars covered by the Atlantic must first stop in Switzerland – the home of the world’s largest gold refinery – to melt and re -decorate.

In a world where financial transactions in a fraction of a second in a fraction of a second, the booming triangular trade depends on the dependence on the metal alley of the gold market. In general, billions of dollars of gold claims are never done without the vault.

However, the distortions created by Trump’s radical trade policy have stressed the system. Although Trump never mentioned the Boolean tariff, he had little potential to send the price of gold futures to the United States compared to London, creating an arbitration opportunity for traders who wish to transport metal across the Atlantic.

The last phase of the epidemic was a significant price gap for the last time. However, New York’s gold hoard has now surpassed the Covid-era record.

John Reid, senior market strategist of the World Gold Council, said, “The physical nature of gold is a matter that is underestimated, especially the people who trade it all day in Bloomberg,” “but it also has a physical asset but also a physical asset.”

Crisis

The journey to New York’s flowing gold bars usually starts underground in one of the nine gold vaults below the Bank of England in the city center of London.

When an order is given to withdraw the gold bars, a worker will enter the vaults and “excavate” the requested gold, which may often be involved in transferring specific bars around other bars. Since London is built on clay, the soft foundation of the Boye building means that gold can be stacked almost shoulder height.

The process is very time -consuming, and as a result, the supply chain for 1 kg bar has created the largest obstacle. The staff who should dig gold must be very monitored, cautiously trained and strong enough to lift the gold bars all day-so the levels of the staff cannot be increased quickly to meet the short-term demand.

The first signs of the rise were published in early December, when the image of the art gathered at a dinner organized by the London Boolean Market Association (LBMA) in the National Gallery and discussed the increasing demand in the United States.

As traders move from London to New York to New York, the row has reached more than four weeks to withdraw gold from BOE, causing fluidity crisis in the London Boolean market.

Short-term lease rate from gold shot Record level In the last month, when traders fight to get their hands on physical metals, effective capital expenditure for businesses like refinery and jewelry makers.

“There is a demand for delivery slots,” Bowie’s deputy governor Dave Ramsden acknowledged a press conference in February, where he admitted to holding a lorry at the Boolean Yard while arriving at the building on the previous day of the building. “Gold is a physical resource, so there are actual logistical limitations and security limitations.”

There are dozens of central banks in BOE, as well as Booians for commercial banks. Only 6 percent of the gold in its large vaults belong to the UK treasury.

BOE charges reflect the low fees, despite the inefficiency described in London’s pre-Ramsden in Physical Gold Markets and comparing the introduction to New York’s original Future Trading Hub. But it also underscreses the importance of confidence in the gold market: Investors and central bankers are happy to park their gold under Threadnidol Street for centuries of records.

Jim Steel, the main valuable metal analyst of the HSBC, says, “London has the Historical Tihasik facility, the hand is down and it goes back to the gold standard, which was well managed, from the end of the Napoleonic war to World War I,” HSBC’s main valuable metal analyst Jim Steel says. “The long legacy of gold operations from the UK and the Bank of England is coming from.”

‘Black Swan Event’

Once they leave the bowl vaults, the bars are usually buried in a armored truck, driven to Heathrow Airport and fly to the stomach of the passenger plane. Due to insurance, passenger jets carry only 5 tonnes of gold at once.

From Zurich, the gold is driven to a refinery, where it melts and is restored before returning to the United States before flying to the United States. According to the World Gold Council, this entire journey between London and New York – including transport and restoration – is about $ 3 to $ 5 per ounce.

Inside the Argar-Herias Refinence in Mendricio, near the Italian border, large gold bars are melted and a long strip inside a “continuous ing-lai” machine is renovated. Because 400-ounce bars are already referring to the 99.99 percent purity requirements for the “fine gold”-linen-grade boole-they do not need to be further refined, simply re-shape.

To do this, the gold strip from the casting machine is broken into pieces of pieces in pieces of pieces.

Walking around the Foundry Floor, Kolvenbach mentions where two workers are in hand with hand in adjacent reactors – at this point this process is running for 24 hours, to meet high demand.

Although the refinery works a lot more than re -sending. It takes roughly times from the mine and refine them into gold, silver and other metals – as well as produces jewelry and operates a mint that stamps small gold bars. Kolvenbach explains that some of the most important things in the building occur inside its laboratory, which cautions each bar in convenience.

Inside the refinery here, the fluidity crisis has a painful impact on the wide gold market by pressing the lease rate for the short -term orrow. To reduce the requirements of the executive capital and to avoid contact with gold prices, the refinery leases most of the gold they are working while in the factory. The sudden enthusiasm of lease rate in this spring has dramatically enhance the operating expenses in Argor-Herias and other refinery.

Kolvenbach said it was a “Black Swan event” that originally changed the basis of its expenditure. “Absolutely it has become a pain for the whole industry, because in the end everyone is affected,” he said. Although the lease rates have come down from their top in February, they are still about three times more than ordinary levels.

People in the industry provide different explanations as to why New York and London still use gold bars of different sizes for their contract.

“What is it understood? No, “Kolvenbach said. “I myself had the same question. Frankly, I never got a correct explanation. “

The Comx tried to launch a Future Agreement for a 400-ounce bar during the epidemic, but it did not stop.

Ruth Crooel, chief executive of LBMA, says markets will ideally use the same size bar in the future. “I would like to think that after that, we can all agree that London and New York should look at the size and size of the bar,” he added.

However, the system continues to maintain, rational, mainly due to involvement.

“It certainly creates a financial opportunity for everyone involved in the process, whether it is a repayer, whether it is a shipper, risk to buy kil times and send them to New York,” he said.

Today, the fears of gold tariffs are reduced, the gold flow in New York is decreasing. If Trump’s protective push cleanses the valuable metals, traders are expecting the flow of the gold Ey London to be reversed as a long -term holder of cheap storage expenditure.

When it happens, the Swiss gold furnaces will firing again with a clockwise.