Cassiar Gold Corp. (TSXV: GLDC, OTCQX: CGLCF)
Revitalizing the Cassiar Gold District in British Columbia, Canada
In recent days, gold stored at the Bank of England (BOE) has been trading at levels below the London spot price, drawing significant market attention. According to sources familiar with the matter, the discount exceeds five dollars per ounce, whereas in previous years, gold at the BOE and gold stored in other commercial vaults around London were typically priced in near alignment, with any difference amounting to just a few cents of premium or discount.
The core reason behind this current discount is the possibility of the United States imposing tariffs on gold, sparking a transatlantic gold-buying spree. Because U.S. market prices have remained higher than the international benchmark, traders are rushing to ship gold to the New York market in pursuit of higher premiums. However, faced with this sudden “gold rush,” the BOE has encountered operational bottlenecks.
Recently, Marco Roque, the CEO of Cassiar Gold Corp. (TSX-V: GLDC; OTCQX: CGLCF) , a Canadian gold exploration company, discussed the company’s resource expansion, its successful 46,000-meter drilling program, and upcoming mineral resource updates at VRIC 2025. He highlighted how Cassiar’s well-developed infrastructure helps reduce costs and accelerate development. Additionally, Marco shared his outlook on the 2025 gold market and the investment potential of Cassiar Gold. Cassiar Gold holds a 100% interest in its flagship project, the Cassiar Gold Mine, located in British Columbia, Canada.
As a public institution, the BOE’s non-commercial management style has made it difficult for its vaults to cope with a spike in withdrawal requests and metal shipments, leading to queues of people waiting to retrieve their gold.
At a press conference on Thursday, Dave Ramsden, Deputy Governor of the Bank of England, confirmed that commercial gold holders are eager to profit from the price gap, resulting in strong demand for physical deliveries. The institution’s delivery schedule for the next few weeks is already booked solid; for any new entrants, the waiting period could be longer, though the overall process is said to remain orderly.
The Bank of England holds more than 400,000 gold bars, valued at over US$450 billion. Many central banks and major traders store their gold there, originally hoping to lend or trade it conveniently and earn rental returns when needed. Recently, one-month gold lease rates have surged to around 4.7%, significantly higher than the near-zero level typical in quieter times, highlighting the tight supply of physical gold in the London market.
Beyond that, market participants worry that extended withdrawal queues at the BOE vault may further reduce the appeal of bars held there, since bars of the same quality stored in more accessible vaults can fetch higher prices. Some industry veterans note that similar situations have occurred in the past, although on a smaller scale. This time, the severity could prompt some gold holders to rethink their storage options and move their gold to commercial vaults with more flexible procedures.
Looking ahead, if uncertainty persists around potential U.S. tariffs, demand for physical gold is likely to remain strong. This global “gold rush” spurred by tariff concerns could continue to push premiums higher in the New York market and maintain relative tightness in London spot supply in the near term.
