According to the financial post, Scotiabank told its staff today that it would close its metals business. Scotiabank has long been one of the premier names in precious metals trading as for years the business has been one world’s biggest lenders in the industry with its history stretching as far back to 1684 as that was the inception of Mocatta Bullion, which Scotia purchased in 1997.

The bank has downsized its gold business considerably following the 2018 money- laundering scandal which centred around a US refinery that smuggled gold from South America.

Even following the downsize, it still remained one of the five banks to settle gold trades and one of twelve markets makers that provide liquidity in the London market.

This should be good news for HSBC and JP Morgan, as they will only further dominate the London market. Gold trading in London is estimated to be worth more than $5tn a year.

More to follow…