"Hong Kong is pulling all its physical gold holdings from depositories in London, . . ."

[ensho]

http://www.atimes.com/atimes/Global_Economy/KI19Dj01.html


It's not gonna fly


I was very interested in the news I read from MarketWatch that said, "Hong Kong is pulling all its physical gold holdings from depositories in London, transferring them to a high-security depository newly built at the city's airport", although it does not say why the depository was built at the airport, of all places.

-snip-

So why did they build it in the first place? Apparently, so it "would support Hong Kong's emergence as a Swiss-style trading hub for bullion and would lessen London's status as a key settlement-and-storage center" - for whatever that's worth.

But getting with the action and being a "team player", the Hong Kong Monetary Authority, "which functions as the territory's unofficial central bank, will transfer its gold reserves stored in other vaults to the depository later this year".

And how much gold are we talking about? "The monetary authority reported $63 million in physical gold reserves as of July 31, according to its International Reserves and Foreign Currency Liquidity statement",

-snip-

Or perhaps the attitude for gold has changed, like Ed Steer's gold and silver daily newsletter quoting Dennis Gartman as saying, "we get the sense that something really quite ominous is upon us and that some news … and clearly not good news … is waiting out there on the market's periphery that shall tend, on balance, to weigh heavily upon stock prices, shall weigh heavily upon government intervention efforts; shall weigh heavily upon the global capital market's collective psychology."
-snip-
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