from Kitco NEWS
Physical precious metals investors continue to get hit with bad news after Reuters reported that Scotiabank would wind down its precious metals business by 2021. Peter Grosskopf, chief executive officer at Sprott Inc., said that this could add to the supply crunch for gold. The COVID-19 pandemic has already severely impacted the precious metals’ global supply chain.
“We were already having a tough time getting the amount of physical that we require. I think it’s going to be that much harder,” said Grosskopf. “It’s almost the opposite of what’s happening in the oil market right now.”
In 2018, Scotia unsuccessfully tried to sell its precious metals business and eventually downsized the department when it couldn’t find a buyer. Grosskopf said that it is a surprise that Scotia decided to shut down its precious metals desk instead of looking for another buyer.
“They had a very prestigious position as one of the top three traders in that business,” he said.
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