vaults are full right up to the topSo that's where they are hiding it, lol!!
Zurich Bank's Vault `Full to the Top' With Gold on Fund Demand
By Rachel Graham
Oct. 15 (Bloomberg) -- Zuercher Kantonalbank, the Swiss lender that manages about $107 billion, said its gold vault is full after a surge in demand from investors seeking a haven during the credit crunch.
Assets in the Zurich-based bank's ZKB Gold ETF, backed by about 2.66 million ounces of the metal, have risen to a record for seven consecutive weeks. That amount of gold is worth about $2.25 billion at today's prices and equal to about 12 days of global production.
``Demand is so strong,'' Susanne Toren, a metals analyst at the bank, said by telephone from Zurich today. ``Our vaults are full right up to the top.''
Investors are buying gold coins and bars, and exchange- traded funds backed by physical metal, after banks including Lehman Brothers Holdings Inc. collapsed. Assets in SPDR Gold Trust, the largest ETF backed by bullion, advanced to a record 770.64 tons (24.78 million ounces) on Oct. 10.
Rand Refinery Ltd., the world's largest gold refinery, in August said it ran out of South African Krugerrands. The Perth Mint, producer of 10 percent of the world's bullion, doubled output in the past six months.
Zuercher Kantonalbank, which is privately owned, also manages funds for silver, platinum and palladium. Sibylle Umiker, a spokeswoman for the bank in Zurich, confirmed the vaults are full and the company is looking for more space in Switzerland.
To contact the reporter on this story: Rachel Graham in London at rgraham13@bloomberg.net
Last Updated: October 15, 2008 08:37 EDT