Market sentiment towards reports that ICBC/Standard Bank is to purchase Deutsche Bank's London-based gold vaulting business appears positive with most seeming to think it makes strategic sense, although no one could confirm if the story is true or not.
One banker said that, if it is indeed true, he sees it as a sensible move, although he queried the impact on the wider market.
A second source said that the fact that ICBC/SB's head of precious metals business development is Raj Kumar -- previously the managing director of Deutsche Bank's precious metals business -- makes the rumors even more believable.
The German bank closed down its physical precious metals desk, and operations, in late 2013. Its vault became operational in June 2014 and has a capacity of 1,500 mt. It was built and is managed by G4S.
There has been speculation for some time that the bank is actively seeking offers for the vault, with a Chinese entity a likely suitor.
Deutsche's exit came along side many others, including Barclays, Credit Suisse, Mitsui and most recently Morgan Stanley.
Commodities prices came under heavy pressure in 2015, and that theme has continued at the start of 2016, as the sector struggles to come to terms with weaker Chinese demand, while a strong dollar has added to the pain of dollar-denominated commodities.
ICBC/Standard Bank's official line on the matter is no comment.
Deutsche Bank hadn't replied at the time of writing.
