Long Lines at the World’s Second-Largest Gold Storage as Demand Surges
Gold Traders Face Weeks-Long Queues at the Bank of England
The Bank of England, home to the world’s second-largest gold reserves, is experiencing an unprecedented rush as traders scramble to withdraw gold bars. The sudden surge in demand stems from President Donald Trump’s tariff threats, which have made gold more valuable in the United States than in other parts of the world.
Gold Becomes More Valuable in the U.S.
Gold traders are rushing to ship gold to the U.S. to capitalize on price differences. Concerns over potential tariffs have created a supply scare, driving up gold prices in American markets.
“The U.S. gold market has been trading at a premium to the London market,” said Dave Ramsden, deputy governor for markets and banking at the Bank of England. Gold owners are eager to take advantage of this price gap, leading to a flood of withdrawal requests.
Bank of England’s Vaults Under Pressure
As a result, all existing gold withdrawal slots at the Bank of England are fully booked. Traders who haven’t secured a slot might have to wait weeks to access their gold.
“All of those bodies who ship the gold have already booked the slots they need over the next few weeks,” Ramsden noted. “If you’re coming in new, you might have to wait longer.”
The Bank of England holds over 400,000 gold bars worth billions of pounds, making it a key global custodian of the precious metal, second only to the New York Federal Reserve. However, its stockpile has declined by about 2% since the end of last year due to rising withdrawals.
U.S. Gold Inventories Surge Amid Supply Fears
Meanwhile, the COMEX exchange in the U.S.—a major market for trading gold, silver, and other metals—has seen gold inventories nearly double since late October, according to a report by Commerzbank.
Analysts believe this surge is linked to fears that Trump’s tariffs may include gold imports, making it more expensive to bring metal into the U.S.
“The fact that gold is significantly more expensive on COMEX than in other trading centers is likely related to fears of U.S. import tariffs,” wrote Carsten Fritsch, a commodity analyst at Commerzbank. “Traders are stockpiling now to avoid potential supply disruptions.”
Gold Prices Climb as Global Tensions Rise
The safe-haven appeal of gold has also contributed to rising demand. Investors are spooked by Trump’s trade policies, as well as geopolitical tensions, including Russia’s prolonged war in Ukraine and instability in the Middle East.
According to UBS, these factors are reinforcing gold’s attractiveness as a stable asset in uncertain times.
Logistical Challenges Add to the Chaos
Unlike digital or paper assets, gold is a physical commodity with logistical and security challenges.
“Gold is heavy, and moving it requires strict security,” Ramsden explained. “Even getting into the (central) bank this morning was trickier because a lorry was in the bullion yard… and the stuff is also quite heavy.”
As demand continues to rise, traders and financial institutions are closely watching how the Bank of England and global gold markets respond to this surge in withdrawals.
