Investment Bank

Barclays Commodities Products for Agriculture, Industrial Materials, Mining, Metals, Oil, Power, Gas and Environmental Markets

Commodities

Barclays focuses on providing a simplified financial Commodities flow platform for clients, with a strong emphasis on efficient electronic execution. That includes our commitment to Precious Metals, Financial Oil, US Financial Gas, and Index products, as an integral part of our client offering.

Twitter linkedin email compact

Mining and Metals

Barclays provides a broad spectrum of financial services and solutions to the mining and metals industry comprising advisory, financing and risk management. We have one of the most established mining and metal franchises in the industry from which we provide our clients with a consistent product offering world-wide.

Our global presence and ability to raise funds in all the major mining and metal jurisdictions supports the needs of our clients and their multinational servicing requirements. Barclays has experience working with governments and local agencies in the most challenging geographies and is able to provide expert advice to clients who need a local partner.

We are committed to placing clients at the heart of our business. Our global team of specialists provides in-depth and diverse experience and cater to clients of all sizes, from juniors looking to raise finance and guarantee a specific revenue flow for their first project to large diversified companies looking to secure major acquisition financing. The team is underpinned by local expertise, giving our clients, regardless of their size and requirements, with the hands-on knowledge and know-how that they need.

Product offering

Our Metals and Mining product offering includes:

  • Debt Capital Markets
  • Equity Capital Markets
  • Commodity Sales
  • Foreign Exchange
  • Interest Rate Derivatives
  • Equity Derivatives
  • M&A Advisory
  • Loans

Contacts

For further information please contact us at:

More

Precious Metals

As a 24-hour operation, Barclays is able to offer a global service to all clients regardless of location or time zone.

Underlying Markets

  • Gold
  • Silver
  • Platinum
  • Palladium

Instruments & Services

  • Forwards and swaps out to 12 years
  • Vanilla options
  • Exotic options
  • Deposits
  • Swaps versus convertible currencies LoCo London
  • Location and fineness swaps
  • Gold IRS and FRAs
  • Tailored finance and hedge programs for the producer sector
  • Derivative structures, including commodity linked investor products and yield enhancements NYMEX/Comex
  • Clearing Member London Gold Fixing LoCo London clearing service in gold and silver
More

The Barclays Vault

Barclays has been offering precious metal transfer clearing services and account custodian services to the market for many years. In response to increased client demand for vaulting services, Barclays has opened a new state-of-the art London vaulting facility offering storage services for gold, silver, platinum, palladium and rhodium.

Security

The Barclays vault is protected by a purpose-built holistic and integrated security system using the latest technology and physical protective measures. This is designed, installed, monitored and maintained to the highest specifications. The security system coupled with an immediate law enforcement response capability, provides a fully secure operational environment to protect assets and personnel from potential threats and risks.

Insurance

Barclays has obtained insurance to cover its clients’ assets in the new facility against risks of physical loss of or damage to the bullion. The insurance is on such available terms and conditions as are considered appropriate in the bullion custody business.

Transport and shipping

Barclays is experienced in arranging the logistics for secure transportation of precious metals to destinations throughout the world.

Storage charges

Barclays’ storage charges are competitive and are comprised of two fee elements:

  • Storage
  • Handling (including weighing and checking to ensure London Good Delivery (LGD) status upon receipt and preparation for dispatch)

Understanding precious metals clearing and custodian services

Bullion accounts

Clients can hold either allocated or unallocated accounts with Barclays and other clearing members. The details of and differences between the two account types are detailed in the 'Accounts at Barclays' section.

Allocated

An allocated account gives entitlement to specific metal; designated stock will be segregated and the account holder given a list of bar numbers, weights and assays of each bar. Barclays acts as a custodian and the account holder has full title to the metal. The account holder has no credit risk on the custodian. Credits and debits to the account are effected by physical movements of bars or by book entry transfer.

Unallocated

An unallocated account is the most popular way to hold precious metals balances. It gives general entitlement to metal but specific stock is not set aside or assigned to the account holder. Balances on the account are backed by the general stock of the bullion clearer with whom the account is held, and as such the account holder has credit risk on the custodian as an unsecured creditor.

Credits and debits to the account are effected by book entry transfer.

Account balances are reflected in units as follows:

  • Fine troy ounces of gold based on a 995 gold bar
  • Troy ounces of silver based on a 999 fine LGD silver bar
  • Troy ounces of platinum based on a 9995 fine LGD platinum bar
  • Troy ounces of palladium based on a 9995 fine LGD palladium bar

In order to move from an unallocated to an allocated account, specific bars are ‘allocated’ and the corresponding weight amount is debited from the unallocated account.

Unallocated transfer clearing

In settlement of a purchase or sale of unallocated London bullion and the counter-value currency, the bullion leg settles through an account held with one of the six bullion clearing banks. one of which is Barclays. The currency leg settles through a currency nostro account. The metal transfer clearing function is provided by LPMCL via its electronic platform AURUM.

Physical custodian services

Clients may choose to allocate their metal holdings and store the material in a vault. Please see 'The Barclays Vault'section for more information on custodian services.

Accounts at Barclays

Clients can open allocated and unallocated accounts with Barclays. Barclays account opening procedures are required for new clients and all clients must execute market standard account opening documentation.

Account management

Allocated accounts:

  • Barclays metals inventory management tool (MINT), providing real time client user access through the Barclays Live platform
  • Account instructions via SWIFT
  • Regular account statements
  • Unallocated accounts:
  • Barclays unallocated account tool (Prospect), providing real time client user access via the BARX platform
  • Account instructions via SWIFT or portal
  • Regular account statements

Account fees

Allocated accounts:

  • Storage fee (charged quarterly)
  • Handling fee (charged upon action)
  • Unallocated accounts:
  • Account maintenance fee (charged quarterly)
  • Transfer fee (charged quarterly)
More