Deutsche Bank said last week it begun operating a precious metals vault in London, joining a series of other institutions that offer to store gold in the global centre of the over-the-counter bullion market.
The vault has a capacity of 1,500 tonnes, making it significantly bigger than a 200-tonne storage facility that the bank owns at the <a title="Store Gold in Singapore" href="http://www achat viagra internet.gold-storage.com/singapore/” target=”_blank”>Singapore Freeport.
The bank in March 2012 had announced to open the London vault, while gold prices were on a rally. The sharp decline in gold prices during 2013 further delayed the plans. Incidentally gold prices had tumbled 28% in 2013. However, demand for gold bars and coins continued to remain strong in 2013. According to WGC statistics, gold coin and bar demand rose 31% to 1,780.60 tonnes during the year. Although the yellow metal has regained some of the losses, many analysts still hold a bearish view.
The bank has partnered with G4S for running the operations at the newly opened vault. The vault is open to commercial and central banks and also to large scale institutional investors.
Deutsche and other banks are facing pressure from regulators to reduce their involvement in riskier businesses and to have more capital on hand to weather potential financial storms in the future.
Investigations begun last year by regulators in Germany, Britain, the United States and elsewhere have not resulted in any criminal charges, but more than two dozen traders have been suspended or terminated as a result of internal inquires at some of the world’s largest banks. And Deutsche Bank to give up its seat on the gold-fixing panel in April.