The Blubber

Beneath the streets of London, inside the fortified vaults of the Bank of England, a real-life financial thriller is playing out.

These vaults, home to one of the world’s largest gold reserves, have become the center of a sudden and dramatic shift. In recent weeks, an urgent wave of gold transfers has seen tonnes of the precious metal shipped from London to the United States.

The catalyst? Concerns over a potential trade war sparked by former President Donald Trump’s tariff threats. Fearing new levies on gold, traders are rushing to move their holdings across the Atlantic before any restrictions take effect. This uncertainty has disrupted the gold market, driving down physical gold prices in London while boosting the value of gold futures in New York.

Gold futures in New York have jumped 11% this year, reaching a record high of $2,935 per ounce, while physical gold prices in London have declined. The price gap has created a lucrative arbitrage opportunity, prompting traders to move bullion at an unprecedented pace.

This transatlantic gold rush—the largest in years, according to the Wall Street Journal—has placed immense pressure on the Bank of England. Deputy Governor Sir Dave Ramsden told the Telegraph that the bank has been inundated with withdrawal requests as traders seek to capitalize on the price disparity.

What was once a routine process taking just a few days has now stretched to between four and eight weeks, sources told the Financial Times, as demand to transfer gold out of London surges.