The Blubber

Gold Rush: London Vaults Empty as Traders Scramble to Move Bullion to U.S.

Deep beneath London’s streets, in the fortified vaults of the Bank of England, a financial drama is unfolding that could rival the most gripping fiction.

Hundreds of tonnes of gold—stored in the world’s second-largest physical gold depository—are being rapidly moved across the Atlantic to the United States.

Trump’s Trade War Sparks Market Chaos

The sudden shift is fueled by fears of tariffs as Donald Trump threatens a trade war that could disrupt the gold market. Traders, worried that gold imports may soon face tariffs, are rushing to get their bullion into the U.S. before the policy takes effect.

This uncertainty has created a rare pricing gap between London and New York:

• Gold futures in New York have surged 11% this year, hitting a high of $2,935 per ounce.
• Meanwhile, physical gold prices in London have fallen, making it more profitable to transport gold overseas.

As a result, traders are engaged in the biggest transatlantic movement of gold bars in years, according to The Wall Street Journal.

Bank of England Overwhelmed by Withdrawal Requests

At the Bank of England, the rush to withdraw gold has caused unprecedented delays.

“Gold is a physical asset, so there are real logistical and security constraints,” said Deputy Governor Sir Dave Ramsden.
“Getting into the bank this morning was tricky because there was a lorry in the bullion yard.”

According to The Financial Times, the waiting time to withdraw gold has now stretched from a few days to between four and eight weeks.

Logistical Challenges: Recasting Gold Before Shipment

Transporting physical gold isn’t simple. The London bullion must first be shuttled to Swiss refiners, as the Comex commodity exchange in New York requires a different bar size.

After being recast, the gold is often loaded onto commercial passenger flights—the cheapest and safest way to transport bullion across the Atlantic, according to The Wall Street Journal.

Gold Reserves in New York Surge

Since Trump’s election in November, a staggering 393 metric tonnes of gold have been transferred into Comex vaults in New York, increasing inventory by 75%, reports The Financial Times.

Market insiders suggest even more gold is likely being stored in private vaults owned by JPMorgan and HSBC.

Gold Prices Could Climb Even Higher

The market frenzy may not be over. Goldman Sachs has raised its 2025 gold price forecast to $3,100, while UBS predicts it could surpass $3,200.

As uncertainty looms over global trade, London’s gold vaults may continue to empty, with Wall Street the ultimate winner.