Gold Trading More as “Money” or a Currency Than as a Commodity
Posted on Friday, October 17th, 2008 | In Gold Markets“Zuercher Kantonalbank, the Swiss lender that manages about $107 billion, said its gold vault is full after a surge in demand from investors seeking a haven during the credit crunch.
Assets in the Zurich-based bank’s ZKB Gold ETF, backed by about 2.66 million ounces of the metal, have risen to a record for seven consecutive weeks. That amount of gold is worth about $2.25 billion at today’s prices and equal to about 12 days of global production.
“Demand is so strong,” Susanne Toren, a metals analyst at the bank, said by telephone from Zurich today. “Our vaults are full right up to the top.”
Investors are buying gold coins and bars, and exchange- traded funds backed by physical metal, after banks including Lehman Brothers Holdings Inc. collapsed. Assets in SPDR Gold Trust, the largest ETF backed by bullion, advanced to a record 770.64 tons (24.78 million ounces) on Oct. 10.
Zuercher Kantonalbank, which is owned by the Canton of Zurich, also manages funds for silver, platinum, and palladium. Sibylle Umiker, a spokeswoman for the bank in Zurich, confirmed the vault is full and said the company is looking for more space in Switzerland.”
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February 23rd, 2009 at 10:50 am
[...] When the gold holdings of Zuercher Kantonalbank’s ZKB Gold ETF reached just 75 tons, the Zurich-based bank was forced to look for more gold storage space because its vaults were full. Straight Stocks report about this lack of gold storage space: [...]