Hoarding Gold: Deutsche Bank Takes up Rothschild’s Offer*
Backed by Lord Rothschild has joined the World Gold Council to put £12.5m into BullionVault. An online peer-to-peer gold investment platform stores physical gold for private clients in London, New York and Zurich in 2010.
By Cecilia Jamasmie
Deutsche Bank, one of the largest players in the foreign exchange market, has opened a precious metals vault in London, following the steps of a number of other institutions that offer to store gold in the global centre of the over-the-counter bullion market.
The vault, reports Reuters, can hold up to of 1,500 tonnes, significantly more than the vault it opened up last year in Singapore, with a capacity of 200 tonnes.
Deutsche and other banks are facing pressure from regulators to reduce their involvement in riskier businesses and to have more capital on hand to weather potential financial storms in the future.
Last week, the bank warned investors that continuing investigations by financial regulators into potential manipulation of the $5-trillion-a-day currency markets could have a “material” financial effect on the bank.
Investigations begun last year by regulators in Germany, Britain, the United States and elsewhere have not resulted in any criminal charges, but more than two dozen traders have been suspended or terminated as a result of internal inquires at some of the world’s largest banks. And Deutsche Bank to give up its seat on the gold-fixing panel in April.