LONDON (Scrap Monster): Deutsche Bank on Monday announced that it has begun operating a precious metals storage facility in London. The 1,500 tonnes vault is the bank’s fifth vault worldwide. Deutsche Bank already owns and operates vaults at Singapore Freeport, Hong Kong, Zurich and New York.
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 Bank is one of the largest players in forex market and is one of the six members of the London Bullion Market Association (LBMA).