Comments by Ahmed bin Sulayem, Chairman and CEO of the Dubai Multi Commodities Center (DMCC) on the article "Russian Gold Is in Hands of Obscure Firms as JPMorgan, HSBC Exit" published by Bloomberg at www.bloomberg.com/news/articles/.
(twitter.com/ahmedbinsulayem) – @Edspencive while I agree that gold has naturally found the path of least resistance to continue its function as a globally traded commodity, you overlooked the following:
1. The @LBMA clearly stated that "all Russian bars that were already in the Loco London and Loco Swiss markets prior to 7 March 2022 remain good delivery" meaning the same Russian bars that are now in London can still be traded and are widely held across the gold and silver ETFs that use the vault facilities of @JPMorgan and @HSBC – so these banks have certainly not exited involvement.
2. While the G7 may have banned 'new' gold originating from Russia on 26 June 2022, gold produced before 7 March and exported from Russia prior to that date was still acceptable.
3. Switzerland didn't ban gold exports until 3rd August 2022 - two weeks after the EU did. Interestingly, Switzerland specifically imported 3 tonnes from Russia for refining in May 2022.
4. London remains a major stockpile for Russian gold. Why does the LBMA refuse to disclose how much gold is held in London to the public? While both JP Morgan and HSBC already have conspicuous track records of harbouring corruption and fraud, the LBMA's complete lack of transparency isn't a good look considering two of its biggest banks are not only two of its four clearing banks, but also convicted money launderers and financial violators. in the latter's case, for the Mexican drug cartels.
5. British and Swiss customs data show huge shipments to China, India and other countries in Asia and the Middle East, with the LBMA recording a drop of 468 tonnes of gold stored in London in the first 11 months of 2022. LBMA banks are still very much actively dealing in Russian bars.
6. While the UAE was already a top destination for Russian gold, it fails to mention that the flow has been very much supported by LBMA’s banks who continue to trade in existing Russian gold in large quantities.
