Tag - Gold Exchange

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Thursday, August 10 2017

Performance Bond Requirements: Gold/Silver

CME raises gold & silver margins by approx 8%

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Wednesday, August 2 2017

LBMA Gold Vault Data - How low is the London Gold Float?

The most important number in all of this is how much gold do the LBMA bullion banks in London own and control. It cannot be more than about 1500 tonnes on the high side and less than 1000 tonnes on the low side. But still the London gold market trades over 6000 tonnes of gold equivalent each day, which is over 143,000 tonnes per month or 1.6 million tonnes per year. This is only possible because the London gold market is a giant fractional-reserve system of paper gold trades with very tiny physical gold underpinnings.

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Tuesday, August 1 2017

Demystifying London's Gold and Silver Vault Holdings

The LBMA vault holding data outlined below represent the volume of Loco London gold and silver held in the London vaults offering custodian services. As at 31 March, 2017 there were 7,449 tonnes of gold, valued at $298 billion and 32,078 tonnes of silver valued at $19 billion. This equates to approximately 596,000 gold bars and 1,069,255 silver bars.

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Monday, July 31 2017

Revealed for the first time: just how much gold is in London's vaults

New data has revealed that around 7,500 tonnes of gold was held in London in March of this year – the equivalent of 596,000 gold bars, or £227bn-worth of gold.

The data also revealed that London’s vaults held 32,078 tonnes of silver in March, worth £14.5bn.

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Thursday, July 27 2017

London Metal Exchange to publish gold, silver reference prices within weeks

The London Metal Exchange (LME) will start publishing gold and silver reference prices, the exchange told Reuters on Tuesday, potentially challenging the dominance of benchmarks administered by Intercontinental Exchange (ICE).

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Wednesday, July 19 2017

80 tonnes of gold traded on LMEprecious in first week

The London Metal Exchange said on Monday that 2.6 million ounces (79.6 tonnes) of gold and 12.8 million ounces (397.5 tonnes) of silver was traded through its LMEprecious contracts in their first week of trading.

LMEprecious, which includes spot, daily and monthly futures, launched on July 10 with backers including banks Goldman Sachs and Morgan Stanley who committed to provide liquidity as part of a 50:50 revenue-sharing deal with the LME.

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Is the COMEX Rigged?

With the London Gold Market trading unlimited quantities of unallocated gold which the bullion banks create out of thin air, and with COMEX trading gold futures which are also created out of thin air, the disconnect between the world of unlimited paper gold and the world of limited physical gold is becoming ever more stark.

On one side lies paper claims on gold which come into and out of existence through cash-settled market mechanisms. On the other is real physical gold that is segregated, allocated and unencumbered, with full title held by the gold holder. Paper gold ownership is fleeting, speculative and prone to counterparty and conversion risks. Real gold is tangible, has inherent value, has no counterparty risk, and can be securely stored.

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Thursday, July 13 2017

The Mechanics of the Shanghai International Gold Exchange

The Shanghai International Gold Exchange can be viewed in a number of ways. Organizationally, the SGEI it is a fully-owned subsidiary of the SGE and is registered in the Shanghai Pilot Free Trade Zone (FTZ)1. The SGEI’s offices are also located in the Shanghai Pilot FTZ in the Bank of China Tower, 200 Yincheng Road Central, Pudong, in Shanghai.

From a trading perspective, SGEI refers to the “International Board” of the Exchange. On this Board, a number of physical gold contracts (products) specifically designed for international gold investors are listed and traded. Since these products are physically delivered gold contracts, the SGEI infrastructure also encompasses a certified precious metals vault where the physical metal backing this gold trading is stored. This SGEI certified vault is also located in the Shanghai Pilot FTZ and is ring-fenced from the SGE’s network of gold vaults that serve the domestic Chinese gold market. The gold in the SGEI vault can be freely imported into and exported from the FTZ since the FTZ is deemed to be outside of China for customs purposes.

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Monday, July 10 2017

This Giant Metals Exchange Is Taking on the Gold Elite

The world’s biggest industrial metals exchange is taking on the most powerful players in the gold market with the launch on Monday of its first futures contract for the commodity since the middle of the 1980s.

The London Metal Exchange and its partners aim to grab a piece of the action in a city where almost half the world’s gold changes hands. At stake are rival visions of how best to run the market, pitching the LME, Goldman Sachs Group Inc. and Morgan Stanley on one side and the London Bullion Market Association representing some of the biggest trading firms on the other.

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Friday, July 7 2017

Bullion Banks line up in London to support LME's Gold Futures

Meet the New Boss, Same as the Old Boss

– these LMEprecious futures will be trading unallocated gold and unallocated silver.

– unallocated gold and unallocated silver is fractionally-backed paper gold and paper silver

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Wednesday, May 31 2017

Gold Margins - Effective June 1

CME lowers gold margins

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Hong Kong needs around-the-clock gold trading

For the Hong Kong Exchanges and Clearing (HKEX) to be successful in its plans for gold trading, longer trading hours are needed as mainland and international customers are likely to need 24-hour servicing, according to leading traders in the yellow metal.

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Thursday, May 25 2017

London's gold benchmark hit by volatility after banks exit

London's gold benchmark experienced large, unpredictable fluctuations after some banks left the auction that sets the price relied upon by the $5 trillion-a-year bullion market, according to a Reuters analysis of trading data.

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Tuesday, May 16 2017

India's Working With World Gold Council to Create a Spot Exchange

The World Gold Council is working with the Indian government on plans to create a local physical spot-gold exchange that may start up as soon as next year.

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Tuesday, May 9 2017

LBMA to publish Precious Metal holdings in London vaults

The LBMA and the LPMCL are delighted to announce that from summer 2017 the LBMA will be publishing the gold and silver physical precious metals holdings of the London vaults, with the platinum and palladium holdings to be published at a later date.

The data only includes physical metal held within the London environs and does not include precious metals physical holdings readily available at short notice in other secure overseas vaulting facilities.

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LME introduces gold and silver trading on July 10

London Metal Exchange, a subsidiary of Hong Kong Exchanges and Clearing, will launch gold and silver spot and futures trading in London on July 10 in a bid to capture the increasing demand for trading of precious metals in London, the exchange said on Monday.

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Monday, May 8 2017

Hong Kong exchange operator hopes for third time lucky when it comes to gold futures

Hong Kong Exchanges and Clearing will undertake in the third quarter its third attempt to launch a gold futures contract after two previous failures, but traders have mixed views on its chances for success.

HKEX, which operates the local stock and futures markets, on Monday will kick off promotional efforts for a range of workshops and seminar for brokers, investors and media as part of its plan to launch two new gold futures contracts – one in US dollars and one in yuan - with physical delivery.

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Wednesday, April 26 2017

London Metal Exchange to delay launch of precious metal contracts

The launch of the London Metal Exchange's new precious metals contracts will be delayed until July 10, more than a month later than previously announced, it said on Monday.

The new gold and silver contracts, a mix of daily and monthly contracts designed to enable industrial users to hedge specific dates, were due to go live in early June.

But the LME decided to delay the start "in the interests of maximizing market readiness and participation", it said in a statement on Monday, adding that some prospective participants had indicated that they would not be ready to participate fully in the contracts until the July date.

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Friday, April 14 2017

Death Spiral for the LBMA Gold and Silver auctions?

In a bizarre series of events that have had limited coverage but which are sure to have far-reaching consequences for benchmark pricing in the precious metals markets, the LBMA Gold Price and LBMA Silver Price auctions both experienced embarrassing trading glitches over consecutive trading days on Monday 10 April and Tuesday 11 April. At the outset, its worth remembering that both of these London-based benchmarks are Regulated Benchmarks, regulated by the UK’s Financial Conduct Authority (FCA).

In both cases, the trading glitches had real impact on the benchmark prices being derived in the respective auctions, with the auction prices deviating noticeably from the respective spot prices during the auctions. It’s also worth remembering that the LBMA Gold Price and LBMA Silver Price reference prices that are ‘discovered’ each day in the daily auctions are used to value everything from gold-backed and silver-backed Exchange Traded Funds (ETFs) to precious metals interest rate swaps, and are also used widely as reference prices by thousands of precious metals market participants, such as wholesalers, refineries, and bullion retailers, to value their own bi-lateral transactions.

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Tuesday, April 11 2017

London gold benchmark fixes $12/oz off spot price

London's gold price benchmark fixed some $12 below the spot price on Tuesday afternoon as the auction appeared to become locked in a downward spiral.

From an initial $1,265.75, close to the spot price at the time, the auction price ratcheted steadily lower before fixing at $1,252.90 in the ninth round. From the fifth round to the eighth the bid and offer volumes remained frozen, unable to match.

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