Barclays Opens Massive Brand New Precious Metals Vault In London

Tyler Durden's picture




 

It appears that JPM and HSBC's monopoly in the warehousing of tungsten gold is coming to an end. Just two weeks after QEternity was announced, it has become obvious that the only things, literally, that will matter in the future are the ABCDs: Anything Bernanke Can't Destroy. And as a result of a surge in physical purchases, buyers need to store their metal somewhere. Sure enough, one of the the UK's most insolvent banks - Barclays - is more than happy to provide its brand spanking new warehousing services, with the opening of what will be on of Europe's largest PM vaults. From Dow Jones: "Barclays has opened its first precious metals vault in London in a bid to satisfy growing client demand for bullion as a store of value, the bank said Thursday. The vault, which houses gold, silver, platinum, palladium and rhodium and began operating earlier this month, is one of the largest in Europe. While the bank already has extensive trading and clearing capabilities, this is the first time that Barclays has been able to offer its own precious metals storage facility to its customers, having previously relied on third-party storage." Of course, if and when the scramble comes and everyone demands their gold from the vault located in an unknown location, but somewhere in the inner loop of London's M25, Barclays will just say "Ooops." But we will cross that bridge when we get to it.

From DJ:

The vault "is a very significant milestone in the expansion of our physical commodities offering, filling an important gap across metals and energy," said Mike Bagguley, head of commodities and FX at Barclays. "In doing so we further strengthen our metals business, and our presence in the bullion market," he added.

 

Demand for bullion as an investment vehicle has been rising apace in recent years, with the value of gold almost tripling between the start of the global financial crisis in late 2008 and the metal's record highs of around $1,920 a troy ounce in September last year. According to the World Gold Council, global demand for physical gold bars was 1,159 metric tons in 2011, up 30% on the previous year.

Curious why Ben Bernanke is a goldbug's best friend? Here it is from the horse's mouth:

"Since QE3, the number of enquires we're getting about buying gold have gone up," said Jonathan Spall, product manager for metals at Barclays.

Barclays is not the first, and certainly will not be the last to offer paid confiscation warehousing services:

Aside from the Bank of England, HSBC Holdings PLC and JPMorgan Chase & Co. are the only other banks with their own precious metal vaults in London, which is the center of the global bullion market. Deutsche Bank AG also plans to open a new precious metals vault in London next year.

Wonder where the vault will be located in case you want to "check" the sanctity of its contents? Here:

Like most gold vaults in the U.K., Barclays' facility is located within the area bounded by the M25 road that orbits London. Barclays' vault was designed and built by Brink's Limited UK--a subsidiary of leading global security firm Brink's, Inc.--and is protected by a purpose-built security system.

Finally, as to who will be able to benefit from the new facility: "The vault caters for institutional investors, sovereign wealth funds, central banks and commercial banks."

In other words, everyone.

So come one, come all, and hand over your gold to Barclays for safekeeping. Pretty please.

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Thu, 09/27/2012 - 09:51 | 2835174 Debtonation
Debtonation's picture

Too bad its going to be full of fiat gold.

Thu, 09/27/2012 - 09:56 | 2835192 CvlDobd
CvlDobd's picture

Hey big man! Let me hold your gold!

Owning gold and letting someone else hold it does not compute in my head.

Thu, 09/27/2012 - 09:56 | 2835195 Aziz
Aziz's picture

Hey Barclays!

Rehypothecate this!

....................../´¯/) 
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........('(...´...´.... ¯~/'...') 
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Thu, 09/27/2012 - 09:58 | 2835205 i-dog
i-dog's picture

Hmmm ... I wonder in which foreign jurisdiction, err, I mean square mile, it will be located....

Thu, 09/27/2012 - 10:00 | 2835216 BaBaBouy
BaBaBouy's picture

Not That We Need To FORCE The Issue, Butt The Chinee Are Buying Up Every Scentila Of GOLD They Can Get Their Little Hands On ... " China's Zhongrun to nab 42% stake in Australian gold producer Noble Mineral - Mining.com, Sep 27 2012 9:12AM" GOLD $50K Bitchezzz...

Thu, 09/27/2012 - 10:01 | 2835224 fuu
fuu's picture

If no one counts the bars in the vault are they really there?

Thu, 09/27/2012 - 10:04 | 2835233 BaBaBouy
BaBaBouy's picture

TUNGSTEN CENTRAL, Bitchezzz...

Thu, 09/27/2012 - 10:12 | 2835259 Richard Chesler
Richard Chesler's picture

The vault, which houses gold tungsten, silver tungsten, platinum tungsten, palladium tungsten, and rhodium tungsten, and began operating earlier this month, is one of the largest in Europe.

Got it.

Thu, 09/27/2012 - 10:19 | 2835269 Pladizow
Pladizow's picture

Barclays will be in for a surprise when they ask for their gold to be transferred from the vaults of JPM and HsBC!

So we should store our gold at the center of global fraud?

Thu, 09/27/2012 - 10:37 | 2835341 Bicycle Repairman
Bicycle Repairman's picture

If I had any PM I would store them with Barclays.  That's one secure looking vault.

Thu, 09/27/2012 - 12:38 | 2835770 XitSam
XitSam's picture

My question is: where is this gold coming from?  I mean, is there a large, on-going tranfer of gold from "unnamed sources" into private hands going on?  It is not just shuffling owners for what is already in the market, that would not require any additional vault space. Nor would a rise in the price of gold require more storage. China is reportedly taking gold out of the London system. So... central banks? Tungsten?

Thu, 09/27/2012 - 17:00 | 2836756 thewhitelion
thewhitelion's picture

A Mr. J Corzine wants to make a huge deposit to his peronal account.

Thu, 09/27/2012 - 17:08 | 2836779 Catflappo
Catflappo's picture

Ironically, owners of tungsten tungsten have been told their deposits are not welcome

Thu, 09/27/2012 - 10:22 | 2835297 Boris Alatovkrap
Boris Alatovkrap's picture

In Russia, is tungsten useful material for dental prosthesis. Sometime is so cold and tongue is stick with teeth, but is comparative to cheaper with Gold.

Thu, 09/27/2012 - 10:56 | 2835412 Raymond Reason
Raymond Reason's picture

Comrade, at me there is big love -- grammar russian.  At us in america, not so many gold teeth how at you all in russia.  Yes they prosper gold teeth!

Thu, 09/27/2012 - 15:47 | 2836508 Boris Alatovkrap
Boris Alatovkrap's picture

In Russia, is golden teeth will to meet robber with pliers.

Thu, 09/27/2012 - 10:05 | 2835235 camaro68ss
camaro68ss's picture

what good is a vault filled with tungstin and I.O.U's

Thu, 09/27/2012 - 10:10 | 2835254 Acet
Acet's picture

"I'm afraid your bars were lost in an unfortunate boating accident while crossing the Thames on their way to the vault"

Unfortunatly, Gold seems to be one of the most hydrophilic substances on the planet.

Thu, 09/27/2012 - 10:50 | 2835392 LeisureSmith
LeisureSmith's picture

Located within the ring of steal......awesome. https://en.wikipedia.org/wiki/Ring_of_steel_(London)

Thu, 09/27/2012 - 11:03 | 2835432 imaginalis
imaginalis's picture

They don't want anybody to penetrate their ring but when it come's to our's....

Thu, 09/27/2012 - 11:25 | 2835508 tocointhephrase
tocointhephrase's picture

FAT END FIRST BITCHEZ!

Thu, 09/27/2012 - 12:16 | 2835675 Nobody For President
Nobody For President's picture

Greenie for the reference AND the pun. 

Hint: did not need to boldface the steal - puns do best with a twinge of subtlety, but still ok.

Thu, 09/27/2012 - 10:00 | 2835220 krispkritter
krispkritter's picture

Fort UKnox...the myth continues...

Thu, 09/27/2012 - 10:06 | 2835243 The trend is yo...
The trend is your friend's picture

After The SHTF who will have the treasure map where X marks the pot on the Vault?

Thu, 09/27/2012 - 10:16 | 2835276 ParkAveFlasher
ParkAveFlasher's picture

The schematic of that vault probably looks like a Chutes N' Ladders board, start is your deposit box and and finish is the Queen's "Chambre du McDuck".

Thu, 09/27/2012 - 12:19 | 2835690 Nobody For President
Nobody For President's picture

And if the SHTF for real, that pot of gold may be just slightly radioactive for a few (thousand) years.

Thu, 09/27/2012 - 10:14 | 2835270 EL INDIO
EL INDIO's picture

Nice Art !

Thu, 09/27/2012 - 10:18 | 2835280 Kaiser Sousa
Kaiser Sousa's picture

ah, one of my all time ZH favorites - the digital finger....

Banzi should dress it up so we can spread the love to mainstream bullshit media and all other slaves of the bankers....just a wish...

please come true.....

Thu, 09/27/2012 - 10:39 | 2835349 Unprepared
Unprepared's picture

 

 

....................../´¯/) 
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........../'/.../..../......./¨¯\ 
........('(...´...´.... ¯~/'...') 
.........\.................'...../ 
..........''...\.......... _.·´ 
............\..............( 
..............\.............\...

....................../´¯/) 
....................,/¯../ 
.................../..../ 
............./´¯/'...'/´¯¯`·¸ 
........../'/.../..../......./¨¯\ 
........('(...´...´.... ¯~/'...') 
.........\.................'...../ 
..........''...\.......... _.·´ 
............\..............( 
..............\.............\...

....................../´¯/) 
....................,/¯../ 
.................../..../ 
............./´¯/'...'/´¯¯`·¸ 
........../'/.../..../......./¨¯\ 
........('(...´...´.... ¯~/'...') 
.........\.................'...../ 
..........''...\.......... _.·´ 
............\..............( 
..............\.............\...

....................../´¯/) 
....................,/¯../ 
.................../..../ 
............./´¯/'...'/´¯¯`·¸ 
........../'/.../..../......./¨¯\ 
........('(...´...´.... ¯~/'...') 
.........\.................'...../ 
..........''...\.......... _.·´ 
............\..............( 
..............\.............\...

....................../´¯/) 
....................,/¯../ 
.................../..../ 
............./´¯/'...'/´¯¯`·¸ 
........../'/.../..../......./¨¯\ 
........('(...´...´.... ¯~/'...') 
.........\.................'...../ 
..........''...\.......... _.·´ 
............\..............( 
..............\.............\...

....................../´¯/) 
....................,/¯../ 
.................../..../ 
............./´¯/'...'/´¯¯`·¸ 
........../'/.../..../......./¨¯\ 
........('(...´...´.... ¯~/'...') 
.........\.................'...../ 
..........''...\.......... _.·´ 
............\..............( 
..............\.............\...

Thu, 09/27/2012 - 12:01 | 2835626 Apeman
Apeman's picture

 

 

 

....................../´¯/) 
....................,/¯../ 
.................../..../ 
............./´¯/'...'/´¯¯`·¸ 
........../'/.../..../......./¨¯\ 
........('(...´...´.... ¯~/'...') 
.........\.................'...../ 
..........''...\.......... _.·´ 
............\..............( 
..............\.............\...

Thu, 09/27/2012 - 09:58 | 2835206 ebworthen
ebworthen's picture

Gold in bank = 2X theirs - 1X yours

Thu, 09/27/2012 - 10:04 | 2835231 jekyll island
jekyll island's picture

Don't worry, we are here to help you.  You can trust us, we would never do anything to put your assets at risk. 

Sincerely, 

Jon Corzine

Thu, 09/27/2012 - 10:11 | 2835250 cranky-old-geezer
cranky-old-geezer's picture

 

 

If you don't have it in your hand, you don't have it.

ALL PM "accounts" are going to be corzine-ized. 

ALL of them.  Guaranteed.

Thu, 09/27/2012 - 11:03 | 2835434 Raymond Reason
Raymond Reason's picture
Hide it in a hiding place where no one ever goes
Put it in our pantry with your cupcakes
It's a little secret, just the Robinsons' affair
Most of all, you've got to hide it from the kids koo koo kachoo
Thu, 09/27/2012 - 10:10 | 2835246 localsavage
localsavage's picture

Remember that when the shit hits the fan, posession is 9/10th of the law.

Thu, 09/27/2012 - 10:26 | 2835310 Zap Powerz
Zap Powerz's picture

In related news, pedophiles are now allowed to own and operate day cares.

Thu, 09/27/2012 - 11:09 | 2835448 Raymond Reason
Raymond Reason's picture

It makes sense given their long experience in orphan care. 

Thu, 09/27/2012 - 10:41 | 2835359 centerline
centerline's picture

Anyone who is buying PM's because they don't trust the system, then puts said PM's into the hands of the very people who are at the heart of the problems in the system, has got to be to mad.

Is there anyone here that simply cannot imagine the possibility of day when the banks don't open, tanks roll onto the street for real, and people are told to fuck off regarding anything inside said banks in the name of "national security?"  Or some other scenerio where assets vanish in the night.

Thu, 09/27/2012 - 12:45 | 2835796 viahj
viahj's picture

+ infinity

all the clues are around us.  each day we see another hint of what is really happening around the world.  there is a global scramble for gold.  manipulated low to keep the sheeple calm while the large banks and sovereigns snatch up everything they can.  the day of fiat reckoning is approaching. 

Thu, 09/27/2012 - 10:53 | 2835405 True.North
True.North's picture

On top of that, if this is through their Private Bank/Asset Management they generally charge a fee for this.

 

Making the spread on gold purchases -- $

Charging a fee to hold a client's said gold - $$

Laughing all the way to the hypothecation bank -- PRICELESS

Thu, 09/27/2012 - 11:12 | 2835453 Rossalgondamer
Rossalgondamer's picture

thus they go full circle -

While they write another IOU on your W2PM

 

Thu, 09/27/2012 - 10:12 | 2835263 Alpo for Granny
Alpo for Granny's picture

When the SHTF, the only thing that vault is going to do is protect the investors from their metals.

Thu, 09/27/2012 - 12:57 | 2835844 ToNYC
ToNYC's picture

Another opportunity to do a tungsten swap if they can find any pures on this try: like looking for rare silver dollars in bulk bags 50 years too late.

Barclays keeps a handful for window shoppers and salting the mine/minds.

Thu, 09/27/2012 - 16:01 | 2836585 sgorem
sgorem's picture

'ABCD' = ANOTHER BERNANKE CRAP DUMP. there, that's my 2 cents worth.......................

Thu, 09/27/2012 - 09:58 | 2835175 Dalago
Dalago's picture

My fault is better.

Thu, 09/27/2012 - 09:52 | 2835177 Stackers
Stackers's picture

And its gone ...... next please.

Thu, 09/27/2012 - 10:14 | 2835268 Sudden Debt
Sudden Debt's picture

Like "the check is in the mail", it will be "the gold is on the plane"

Thu, 09/27/2012 - 11:16 | 2835467 Urban Roman
Urban Roman's picture

Dangerous plane to fly on. It could vaporize

Thu, 09/27/2012 - 10:15 | 2835271 EL INDIO
EL INDIO's picture

The vault is actually a StarGate that transfers the PMs to another planet. If someone asks for his stuff they stick a Goa'uld snake up his …

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