Where is the Gold? The London gold market has encountered significant difficulties recently due to a sharp increase in demand for physical gold, resulting in delays in fulfilling delivery commitments. This pressure intensified after Donald Trump's election victory, which caused a surge in demand for gold deliveries on the COMEX exchange. Consequently, 393 tons of gold were moved from LBMA (London Bullion Market Association) vaults in London to New York, raising U.S. gold reserves to 926 tons. This surge in demand has led to a physical gold shortage in London, where much of the metal is tied up in paper markets (such as futures and contracts) rather than being available for immediate delivery. These delays have raised concerns among investors, as LBMA had previously published reserve data to assure the market of its reliability. However, the current situation reveals that not all reported reserves are readily available for delivery. This issue undermines confidence in London’s role as a global hub for precious metals trading. Adding to the challenge, in November 2024, Chinese banks began allowing clients to hold assets in gold instead of yuan, increasing demand for physical gold in China. To meet this demand, China has been aggressively purchasing gold from London, further deepening the supply shortage.