London gold shortage: “People can’t get their hands on gold because so much has been shipped to New York”

The wait to withdraw bullion stored in the Bank of England’s vaults has risen to between four and eight weeks compared with the typical few days. No gold – no withdraw.
Photo: Bloomberg

A surge in gold shipments to the US has led to a shortage of bullion in London, as traders amass an $82bn stockpile in New York over fears of Trump administration tariffs, writes ‘The Financial Times’.

The wait to withdraw bullion stored in the Bank of England’s vaults has risen from a few days to between four and eight weeks, according to people familiar with the process, as the central bank struggles to keep up with demand.

“People can’t get their hands on gold because so much has been shipped to New York, and the rest is stuck in the queue,” said one industry executive. “Liquidity in the London market has been diminished.”

Since November’s US election, gold traders and financial institutions have moved 393 metric tonnes into the vaults of the Comex commodity exchange in New York, driving its inventory levels up nearly 75 per cent to 926 tonnes — the highest level since August 2022.

Gold prices have risen 5 per cent since the start of the year, and are just $30 shy of their all-time record of $2,790 per troy ounce set in October.

London and New York are two main global markets for trading, with most physical trading taking place in the UK, while the futures market is in the US.

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