Scotiabank To Close Its Metals Business: Sources

Two sources say they’re getting out of the gold & silver trade. Here are the details…

(by Half Dollar) Scotiabank is getting out of the gold & silver business.

Good riddance.

From Reuters this Tuesday:

LONDON (Reuters) – Bank of Nova Scotia (Scotiabank) (BNS.TO) told staff on Tuesday it would close its metals business, drawing the curtain on one of the most venerable names in precious metals trading, two sources familiar with the matter told Reuters.

How big is, an soon to be, was, Scotiabank in the gold market?

Scotia was for years the world’s biggest lender to the physical precious metals industry, with a history stretching to the founding in 1684 of London gold dealer Mocatta Bullion, which it bought in 1997.

But it remains one of the five banks that settle gold trades and one of 12 market makers that provide liquidity in the London market. It is also a participant in daily auctions that set a globally used gold benchmark price.

Of note is just how much the bank has whittled down its presence in the gold “market”, at least as reported by Reuters:

Around 15 people worked in Scotia’s metals business, industry sources said, around three-quarters of them in precious metals and the remainder in industrial metals.

That compares to around 140 five years ago, the sources said.