Kitco News reports that Scotia Bank is shuttering its precious metals desk, also known as Scotia Mocatta. Scotia Mocatta was one of only 35 banks worldwide which make up the bullion banking system. What will be the impact of the closure of this major bullion bank? Disruption to the gold market which will make it harder to get physical gold and gold prices will go up.
Bullion banks are banks which are involved “in some or all of the following activities in the precious metals markets: trading, clearing, vaulting, physical metal distribution, risk management, intermediating between metal lenders and borrowers, mine finance and hedging, financing fabricators, providing consignment stocks, generating precious metals market research.”
Scotia Mocatta bank started off as Mocatta Bullion Bank in 1684. Scotia Bank bought the business from Standard Chartered in 1997. Over the years tt has been involved in a series of law suits regarding price fixing. You can read more about it here:
Thinking to get some gold now before prices go higher? We list the best deals from a curated selection of bullion dealers: