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



Companies Mentionned : Bullion |
Data and Statistics for these countries : Switzerland | All
Gold and Silver Prices for these countries : Switzerland | All
<< Previous article
Rate :Average :5 (1 vote)
>> Next article
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
Gold & Silver Market Morning
12:55end
If you trade XAU/RUB and have bought XAU using RUB, you should have closed your position as he advised. Then you should have switched, buying gold ...
Muslim terrorism, the left and t...
01:09Firebear1
All please understand this person was a Muslim,that was his believe! His character was that of a criminal as was shown by his action on the day and...
Napoleon vs. Cheney: "Interrogat...
18 Decwalmarde
Torture just put the moral line lower. Lets think about American exceptionalism. What we want ? we want to spread and defend that exceptio...
Napoleon vs. Cheney: "Interrogat...
18 Decwalmarde
Utilitarianism is bad philosphy. I'm also very disgust about torture. It will backfire in our face. We are now no better than ou...
Napoleon vs. Cheney: "Interrogat...
18 DecJosu O.5
I cannot overstate how important is that every american read this article. It's absolutely wonderful how you have summarized every aspect around to...
Muslim terrorism, the left and t...
18 Decend0
Does anyone still wonder why is Australia hotbed for second generation Muslim migrant radicalization? Does anyone still need an explanation on why ...
Gold & Silver Market Morning
17 Decsamking731
Gypsie, my take on what he's saying is on paper gold, not actual gold that you are holding in your hand. In that way, gold is gold, though Pandas ...
Gold & Silver Market Morning
17 DecGypsy1
You have me confused Julian. When you say "We believe that holders of gold in the Ruble. . . . ." I take it you are not talking about someone hold...
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS
Comments closed
Subscribe to 24hGold’s daily market briefing
  • Prices and data of precious metals in 119 currencies and world mining companies
  • Daily analysis of the economy, markets and more
  • Free, daily and indispensable
Stay informed, subscribe now !
* Your email will never be shared.