In the wake of global fiscal upheaval, ever increasing numbers of investors are changing currency into silver and gold. Storage can be a problem, not only for private precious metals owners, but also for central banks seeking to increase their metal reserves. The uptrend in physical metals demand has created a shortage of space as bullion ownership surges and clients look to diversify their storage locations. A surge in exchange traded funds requiring precious metals backing is also bolstering the trend.
Banks, as well as logistics firms are racing to enter the growing precious metals storage market. In London, global bullion market center, both Deutsche Bank and Barclays Capital are planning new bank vault construction by 2013. JP Morgan’s old vault has been reopened, along with construction of a brand new vault in Singapore. Brink’s, the US logistics company opened a vault in 2011 and is considering an additional facility.
