Close X Cookies are necessary for the proper functioning of 24hGold.com. By continuing your navigation on our website, you are accepting the use of cookies.
To learn more about cookies ...
EnglishFrench
Gold & Silver Prices in

Two major Swiss banks nudge customers into allocated gold

IMG Auteur
Published : January 30th, 2013
401 words - Reading time : 1 - 1 minutes
( 1 vote, 5/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...
Category : GoldWire

Here is an exerpt of an article by Jack Farchy of the Financial Times :


The wealthy have for centuries turned to Switzerland as a safe and convenient place to stash their gold. But Swiss banks are now demanding higher fees to accept the world's bullion, as they seek to reduce the size of their balance sheets.

UBS and Credit Suisse, which dominate the powerful Zurich-based physical gold market, have hiked their charges for holding the metal, according to clients and people familiar with the banks.

The move is an attempt to persuade their biggest clients -- including other banks, hedge funds, and institutional investors -- to take direct ownership of their gold in so-called "allocated" accounts, with the bank simply acting as a custodian.


Under more common "unallocated" gold accounts, depositors' gold appears on banks' balance sheets, forcing them to increase their capital reserves. Like their global peers, UBS and Credit Suisse are under regulatory pressure to reduce capital-intensive activities ahead of the introduction of Basel III global banking rules.

People familiar with the banks' thinking said that the move to raise fees was part of a broader attempt to reduce the size of balance sheets. "When it's on balance sheet it does create costs," a person with knowledge of the banks' strategy said.

Fees vary for different clients, and traders said that the increase had not been uniform but that it was generally in the order of about 20 per cent. Vault fees are typically about 0.05-0.1 per cent of the value of the gold.

Credit Suisse declined to comment on the fee rises but confirmed that it was "adjusting its charges for precious metal accounts for financial institutions."

UBS declined to comment.

Higher vault fees are the latest sign of strain in Switzerland's banking industry, as investors in search of a haven pile money into the country.

Last month UBS and Credit Suisse imposed negative interest rates on short-term cash deposits in an attempt to stem inflows from investors seeking a haven from the eurozone crisis.

Some gold investors began shifting holdings from unallocated to allocated accounts -- which are generally more expensive -- at the beginning of the financial crisis.

Unallocated holders can lose their investment if a bank fails, but holders of allocated gold are protected.

* * *

To read more of the article

By Jack Farchy
Financial Times, London
Tuesday, January 29, 2013

http://www.ft.com/intl/cms/s/0/46c25732-6a10-11e2-a7d2-00144feab49a.html



Data and Statistics for these countries : Switzerland | All
Gold and Silver Prices for these countries : Switzerland | All
<< Previous article
Rate : Average note :5 (1 vote)
>> Next article
Chris Powell is the secretary of the Gold Anti-Trust Action Committee (GATA) which has been organized to advocate and undertake litigation against illegal collusion to control the price and supply of gold and related financial securities.
WebsiteSubscribe to his services
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
War Games: China Say It Will Prevent US From Attacking North Korea ...
20 Augkevthorne1
Done nothing? How about: "There was a pre-emptive attempt from Koreans to reunite their country in 1950 after resisting American occupation...
War Games: China Say It Will Prevent US From Attacking North Korea ...
18 AugRckpyle1-2
Tough talk from China. Ask yourself, would China be willing to see Beijing become a crater if it attacked the US to aid NK? No, tough talk is cheap...
NY Fed President Wants Consumers to Tap Home Equity: Didn’t We Try ...
17 Augmikejuha
As a prudent investor, I eliminated all mortgage debt in January 2009. When I paid off my loan with Bank of America, they initially refused to tak...
Total Eclipse
19 AugThe Recusant-2
"I’d like to hear [sic] an argument..." Historical statues typically honor or remember people of greatness, the beneficial contribution th...
Can a government surplus cause the economy to tank?
18 Auggfs543
Your dissection is incisive, Steve. You weren't refuting just this one writer. You were beating up on popular Keynesian fallacies.
Can a government surplus cause the economy to tank?
17 AugDRGEORGE
Thank you very much for that Steve. But please just don't 'leave it there'. The author of that article apparently intends to expand on that bullshi...
Smoke and Fire
16 Augaccording0
some things happen without collusion do you think that the stupid little rats of blm and antifa dont get paid to help wreck our socie...
Smoke and Fire
16 Augaccording0
James. Even a believer has to leave Zoar before he starves to death. Kudos for having the fortitude to write this.
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS