The LBMA is an association so dominated by bullion banks that it might be more correctly called the London Bullion Bank Market Association. These banks position themselves as intermediaries in the flow of everything in the precious metal markets from trading to clearing, and from securitizing to lending and borrowing, all within a fractional reserve system which creates derivative paper gold and paper silver out of thin air using a leveraged system of unallocated precious metal accounts unconnected to the physical delivery of real gold or real silver.