Saturday, September 5, 2009

Hong Kong Pulling Gold Reserves From London

Hong Kong is pulling all its physical gold holdings from depositories in London, and transferring them to a high-security depository newly built at the Chek Lap Kok airport in Hong KOng.

The Hong Kong Monetary Authority, which functions as the territory's unofficial central bank, will transfer its gold reserves stored in other vaults to the depository later this year.

There's a lot of happy talk with this announcement, surrounding all the new financial products Hong Kong will be able to launch, but to me this smells like Hong Kong wanting to keep an eye on its gold and wanting to directly control the gold during very delicate times.