Dealers see opportunity for Hong Kong in European gold shift
Central banks repatriating their reserves could find safe storage at Chek Lap Kok depository
With Germany and other European countries planning to repatriate their gold reserves from the United States, dealers believe this might open up business opportunities for the gold depository at the Hong Kong airport.
Dealers in Hong Kong said the European action showed mainland China might also need to consider whether it was a good idea to shift back its gold stored in the US and other countries.
The Hong Kong Monetary Authority brought all its gold home in 2009 and stored it at the airport depository when the facility came on stream.
"Hong Kong airport has had world-class gold depository facilities since 2009. It is safe for the mainland and other Asian central banks to deposit their gold reserves here," said Fung Chi-kin, a veteran dealer and former president of the Chinese Gold & Silver Society.
Airport Authority board member and legislator Chan Kam-lam agreed it would be a good business opportunity for Hong Kong to get more central banks to deposit their gold in the city.
"If more central banks deposited their gold in Hong Kong, it would benefit the city as an international financial centre," Chan said.