Recall for a moment the definition of a vault. A vault is any space covered by arches, or an arched ceiling over a void. This is why the Bank of England ‘vaults’ are called vaults, because in the old vaults of the Bank of England (before the Bank of England was rebuilt in the 1920s/1930s), the gold was stored in the arched vaulted basements. The pillars in the shots of this ‘old’ HSBC vault look like pillars/piles that are the lower parts of arches, since they taper outwards as they go higher and they are positioned in a grid like formation.
In addition to classical banks and precious metals traders, new online providers like direct banks or non-banks have started offering vaulted gold products to investors.
he New York Fed charges account holders a handling fee for gold transactions, including when gold enters or leaves the vault or ownership transfers (moves between compartments), but otherwise does not charge fees for gold storage.
Gold Vault Fort Knox
Historically, vaulted gold was primarily offered by wealthy private banks, e.g., Swiss private banks, in the form of gold accounts. However, in recent years, new providers—including both banks and non-banks (e.g., precious metals traders)—have started to offer vaulted gold or savings plans based on vaulted gold to private investors.
With the purchase of vaulted gold, investors acquire outright ownership of physical gold. Depending on the specific product features, investors either obtain partial or pooled ownership of large gold bars or whole ownership of bars or coins.
Owning gold can be useful in less extreme circumstances, too. Middle-class Argentinians found their wealth on the international stage decimated when their currency collapsed in 2001. The few with gold off-shore were thus relatively many times richer when the Argentinian government introduced restrictions on the movement of currency outside of their country.
Dubai Multi Commodities Centre
The DMCC Free Zone is situated in the heart of new Dubai and is 1 hours and 15 minutes away from Abu Dhabi. Located in Dubai’s logistics Corridor and on the main arterial Sheikh Zayed Road, it is also served by two Metro stations; JLT and Dubai Marina. Both Dubai International Airport and the New Maktoum International Airport can be reached within 30 minutes.
DMCC (Dubai Multi Commodities Centre) operates it’s own precious metals vaulting in the level 5 basement at Almas Tower, JLT – with this vault being run by Brinks – this vault is also approved for DGCX storage. The DMCC claim this vault to be the “largest non-sovereign vault in the Middle-East”.
Dubai Gold Vault
DMCC Tradeflow: An electronic system that brings together all parties involved in inventory based financing. Through the platform, owners of goods stored in rated warehouses in the UAE can request warehouse keepers to issue "Tradeflow Warrants" which represent the ownership of their goods. These warrants can be used by the owners to pledge beneficial ownership or transfer title of the stored goods to financiers as collateral in return for working capital.
There are approximately 85 clearer members of DCCC, with representation from UAE companies as well as from companies headquartered in markets such as the UK, Singapore, (example United Overseas Bank Bullion and Futures (UOBBF) and Switzerland. All DCGX trades clear through these clearing members.
Regarding gold trading, DMCC developed and continues to promote a number of initiatives to support the growth of the Dubai gold sector. These initiatives range from supporting the development of the gold refining sector through to supporting the growth of gold trading, and include the Dubai Gold & Commodities Exchange (DGCX), the Dubai Good Delivery Standard for gold refining, the establishment of the DMCC precious metals vault, and the creation of precious metal assaying standards.
DMCC is the only international commodity centre in the region. It supports commodity trading across certain commodity groups through purpose-built infrastructure including the Diamond and Pearl Exchanges, innovative products and value-added services such as DMCC Tradeflow and the Dubai Good Delivery Standard for Gold.
This Almas vault is also operated by Brinks. The DMCC claims that this vault is the “largest non-sovereign vault in the Middle East”. The Almas vault is also now a DGCX approved vault for the physical settlement of gold futures. Therefore, currently, the DGCX approved vault locations are:
Brinks Global Services operates precious metals vaults in both the Dubai Airport Free Zone and at Almas Tower in the Jumeirah Lakes Towers complex