| | HONG KONG: Hong Kong has opened its first precious metal depository. Built at a cost of $2.5 million, it is believed to be the first large-scale commercial facility in Asia.
The depository has an area of 340 square metres and is located at the Hong Kong International Airport. It allows for gold and precious metal storage, as well as settlement for its members and market participants.
Hong Kong Financial Secretary John Tsang said: "I have just visited the precious metals depository and it is an impressive facility – sort of like our own Fort Knox.
"Precious metals, primarily gold, will be stored right here under the most secure conditions at one of the world's busiest airports. The gold can be moved quickly and safely to and from virtually anywhere in the world."
Hong Kong Airport Authority's chief, Stanley Hui, and Hong Kong Mercantile Exchange's president, Albert Helmig, were also present on Wednesday to sign an agreement requiring all clearing members of the exchange to keep gold-bar stock at the depository.
Hong Kong has its eye on the bigger market – China – and is aiming to be one of its main gold settlement depositories.
The depository will allow international players to settle their gold trade with the Shanghai exchange members and receive physical delivery of contracts here in Hong Kong.
Gold reserves in China jumped from 600 tonnes to more than 1,000 tonnes in the last five years – an increase of 76 per cent.
The new depository also aims to provide same-day settlement of precious metal trades executed in Asian time zones.
"We're certainly marketing very closely to our neighbours, all the central banks, because they have big quantities. We're competitive in pricing, very safe, politically neutral and market-neutral as well," said Mr Hui.
The Hong Kong Monetary Authority – the city's de facto central bank – will also be transferring its physical gold reserves to the depository later this year.
|
Posts
