Tags: bank | gold | storage

Banks Say Too Much Gold to Store

By    |   Tuesday, 24 Nov 2009 09:55 AM

Gold prices have been soaring this year thanks to a weak dollar, and everyone wants in on the investment.

For some banks, though, it is becoming clear that only the big institutional investors are welcome to store the precious metal in their vaults.

So they're telling smaller investors to get their gold out and store it elsewhere.

HSBC has told retail clients to remove their small gold holdings from its vault in New York City, The Wall Street Journal reported.

Small retail investors don't turn enough profits for the bank like the big institutional investors do, the newspaper reported.

“I can jump up and down and scream all day long about how much I don't like it. But it's their business decision,” says David Norris, executive vice president of GoldStar Trust Co., a Canyon, Texas-based retirement-account trustee, which organizes metal storage for its clients.

Norris says HSBC instructed him in July to stop sending in gold coins for storage. Today he is looking to move the gold from HSBC to a facility in Delaware.

Gold prices hit a record $1,164.30 recently after having risen by more than 30 percent this year.

Gold isn't the only metal to do well when the dollar slides.

Copper and silver are also making gains on the weaker greenback, especially since those two commodities are used in infrastructure development.

“Add the fact that both China and India are building out their infrastructure as well and you have the perfect storm,” Tom Lydon, head of Global Trends Investments, tell Forbes.

© 2017 Newsmax. All rights reserved.

   
1Like our page
2Share
StreetTalk
Gold prices have been soaring this year thanks to a weak dollar, and everyone wants in on the investment.For some banks, though, it is becoming clear that only the big institutional investors are welcome to store the precious metal in their vaults. So they're telling...
bank,gold,storage
254
2009-55-24
Tuesday, 24 Nov 2009 09:55 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved