Why London is Offloading Gold to NYC

In case you missed it, London has been offloading its gold to NYC.

And this is primarily due to the fact that capital is unsafe in Europe as the war drums beat louder by the day.

 

Historically, precious metals and smart money has selected the USA as its safe haven.

And it is especially true today.

Recently J.P. Morgan, for example, moved $4 billion in gold reserves from London to NYC this February.

The central bank of London is especially eager to send its reserves off to America.

London’s largest gold reserve currently holds 310 tonnes of gold or 420,000 gold bars. England only owns 5.4% of its gold holdings with major banking institutions and foreign central banks accounting for the bulk.

 

The London Bullion Market Associated stated that 150 tonnes of gold were shipped out to the Big Apple in January alone.

And that was with 100 tonnes of that coming directly from the Bank of England’s massive vaults.

The begs the question:  So, what are they worried about?

 

In both World Wars, capital fled Europe for the US, strengthening the dollar, and driving up gold demand as a hedge against uncertainty.

 

And contrary to popular belief, Gold does not necessarily move with inflation but reacts to geopolitical instability and loss of trust in institutions.

So, if conflict escalates in Europe, capital outflows could once again drive gold higher, similar to historical patterns.

 

Offloading Gold to NYC

 

There are a multitude of reasons we are witnessing a mass exodus of gold into the US.

And as far as a matter of confidence is concerned, DOGE’s search into Fort Knox could have many questioning if gold is indeed safe in the US.

 

Hmmm!

 

What if the gold is NOT in Ft. Knox?

Enquiring minds want to know.

 

And if you haven’t figured it out by now, the price of gold and silver mining stocks is going up disproportionally to the prices of gold and silver.

Why?

Do the math.

If it costs $1,000 to take an ounce of gold out of the ground and bring it to the market, and the price of gold is $2,000, you have a very nice profit.

And if the price continues to rise, the profit margins increase exponentially for mining stocks.

Get it?

 

We are certainly living in a time of mass political uncertainty.

 

Got Gold?  Or Gold Stocks?

 

 

 

Be sure to read our updated version of gold and silver stocks to own in 2025 (HERE).

Share this with a friend…especially if they own gold and silver stocks. They’ll thank YOU later.

And tell them:

 

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