Encyclopedia: London gold market(Site not responding. Last check: 2007-10-21)
The LondonGoldMarket is entirely different from, but often confused with the London Metal Exchange.
Unlike many commodities markets, the forward market for gold is driven by spot prices and interest rate differentials (similar to foreign exchange forward markets) rather than underlying supply and demand dynamics.
Because interest rates for gold tend to be lower than US domestic interest rates (to encourage gold borrowings so that central banks can earn interest on their large gold holdings), except in exceptional circumstances the goldmarket tends to be in contango (i.e.
Gold is alloyed (mixed with other metals, usually silver and copper) to make it less expensive and harder.
One states that gold's recorded discovery occurred circa 6000 B.C. Another mentions that the pharaohs and temple priests used the relic metal for adornment in ancient Egypt circa 3000 B.C. However, it is curious to note that the early Egyptian's medium of exchange was not gold but barley.
Gold has been prized by people since the earliest times for making statues and icons and also for jewelry to adorn their bodies.
The beginning of the end for the LondonGold Pool was the devaluation of the pound sterling in November 1967, causing yet another run to gold.
Manipulation of markets by governments, aided by central bankers and powerful financial institutions does exist, especially when nations’ currencies, and particularly the world’s reserve currency, are at risk.
By the time the gold pool was officially disbanded in early 1968, it had cost the member countries many billions of dollars (a lot of dollars in those days).
commentaryBA(Site not responding. Last check: 2007-10-21)
Event B was necessary to break the resilience of the goldmarket, which thereafter fell into a major multi-year decline.
Clawar reports a statistical bias towards selling in the COMEX goldmarket which erases what would otherwise be an overnight gain from those markets which operate after the COMEX close and before the LBMA opens.
London Bullion Market data were downloaded from their website (www.lbma.org.uk).
Market opinion had been divided on the approach to the meeting about whether there would be a fully-fledged statement and a number of observers had suggested that this September was too soon for a firm deal to be reached, given that the current Agreement does not expire until next September.
Gold is holding steady this morning (Monday 7th) despite the fact that the dollar has shown some signs of strength and that equity markets in general are turning in very healthy performances so far today.
Market commentators are however still warning of a false dawn and expecting whippy conditions in the market as longer term expectations remain very much in the balance -- and it is this that is helping to keep gold underpinned.
LONDON - The financial district known here simply as The City is a hotbed of the Loyal Order of the Masons, who have a penchant for strange rituals.
International gold trading is an around-the-clock business, with the LondonMarket overlapping those of the Far East in the morning and New York in the afternoon.
All this sounds very quaint and out of touch with computer-driven markets, but up to 20 tons of gold a day are thought to be traded through the fixing.
While records trace bullion transactions back to the 17th century, it was the 1848 Great Californian Gold Rush that propelled the Londongoldmarket to prominence.
All along, the Bank of England has been closely involved with the goldmarket and now acts as the regulator of the market.
London is truly at the centre of the International Bullion Market.
Optimistic members contend that all the London exchange needs is an injection of volatility into the goldmarket, which has had few such periods since the exchange began operations since the exchange began operations in April 1982.
No bull market for gold has occurred since the London exchange was established, and it is precisely that which traders still hope could eventually stimulate a surge in activity.
Many forgot that Comex gold took several years to become established, and that the catalyst for the takeoff in volume there was the great bull market for gold in 1979.
Another (Thoughts!): Profound Gold Market Commentary - Page One(Site not responding. Last check: 2007-10-21)
The goldmarket had always stood in austere, quiet contrast to the highly charged, mega-volume world of stocks and bonds.
The commodity value of gold was forced so low in paper currency terms that all of the new mined gold, going out some 10 years is spoken for.
Do you think in these terms: "if gold goes up $100+ next week I'll sell my futures, gold stocks and 10 K-rands for a fat profit and laugh all the way to the bank" If the goldmarket was the same as in the 70s and 80s, that might be a good move.
These banks were long standing members of the Londongoldmarket, and were also members of the Londongold pool, the five banks who meet twice daily for the Londongold fixings.
In 1973 when VAT was imposed on gold coins, the whole UK market for gold coins was almost killed off overnight, and this brought our dealing with these two banks almost to a stop.
Although they were and remain a major international gold dealer, the only time we have known them be be active in the gold coin market was for a few years from about 1971 to 1973, but we could be a few years adrift with these dates, as we have relied on our memory.
CFTC Glossary(Site not responding. Last check: 2007-10-21)
Liquid Market: A market in which selling and buying can be accomplished with minimal effect on price.
LondonGoldMarket: Refers to the dealers who set (fix) the gold price in London.
Long: (1) One who has bought a futures contract to establish a market position; (2) a market position that obligates the holder to take delivery; (3) one who owns an inventory of commodities.
On Friday March 8th, London sold 100 ton of gold at market, up from around 5 ton on a normal day.
A fortnight later, an official "two-tiered" price was announced to the world, where the official price of $35.20 would remain for central banks dealings, while the free market could find its own price, the Londonmarket re-opening again on the 1st April.
Philip Judge is an administrator of the Gold Heritage Certificate, an offshore silver and gold bullion fund, and editor of www.millennium-money.com.
london gold market coins - gold coins - london gold market(Site not responding. Last check: 2007-10-21)
LondonGold and Silver Statistics from the LBMA
Fixing data reproduced by kind permission of the LondonGoldMarket Fixing Ltd. and the London Silver Market Fixing Ltd. GOFO MEANS GOFO LIBOR LIBOR - GOFO 1 M 2 M 3 M 6...
Wednesday, August 03, 2005 LondonGoldMarket The LondonGoldMarket is entirely different from, but often confused with the London Metal Exchange...
Fixing data reproduced by kind permission of the LondonGoldMarket Fixing Ltd. and the London Silver Market Fixing Ltd.
Whilst great care has been taken to ensure that the data and information contained on this website is accurate, the LBMA can accept no responsibility for any mistakes, errors or omissions or for any action taken in reliance thereon.
Paper Markets are to control the people, steal ttheir wealth and convert it to the elite.
The U.S. Mint is now exploring legislative authority to purchase silver from the open market for its silver coinage programmes." The silver paper spot now is over $4.75 per oz.
•Markets are a way to use the system when needed (if lucky - to pick up the dropped crumbs from paper) but after fees & taxes does the risk (which is great for anyone in a controlled market) out weigh the greed?
