Gold to new records as market maker bullion bank fails
“The Bank of Nova Scotia (BNS) is listed as one of 12 market-making members of 143 total of the London Bullion Market Association. No longer. The bank is closing its metals trading desk, shutting it down entirely. Not selling it or otherwise offloading it, just simply ending it. It will be very interesting to see the bank’s next earnings report on May 26 to see how much losses it suffered in the gold futures market this quarter. Something tells me the losses will be quite large. Otherwise, the bank wouldn’t be scrapping the entire operation without getting a penny for it.”
USAGOLD note: Some fascinating conjecture on what might have happened with the Bank of Nova Scotia’s gold trading business and the impact its closure might have on the rest of the market.
Repost from 5-4-2020