The rise of the machineThe COMEX gold futures market and the London OTC gold market have a joint monopoly on setting the international gold price.  This is because these two markets generate the largest ‘gold’ trading volumes and have the highest ‘liquidity’. However, this price setting dominance is despite either of these two markets actually trading physical gold bars. Both markets merely trade different forms of derivatives of gold bars. Here’s how it’s done…

In September 2014, the Shanghai Gold Exchange (SGE) established a physical gold trading and custody platform aimed at international gold investors, launching this platform as the “Shanghai International Gold Exchange (SGEI)“.  Below is an inside look at the mechanics behind the Gold Exchange…

With similar recently launched London gold futures from CME Group and ICE not having taken off, all eyes will be on these LMEprecious products to see if they can go where no London gold futures have gone before. Therefore, the LME monthly trading volumes page will be one to watch in future.

Silver futures prices on the COMEX futures trading platform briefly plummeted at approximately 7:06am Singapore time Friday, with the price for the front month (most active) September silver contract falling from a US $16.06 quote down to a low of US$14.34 all within  a 1 minute interval.

The growing influence of the Shanghai Gold Exchange (SGE), the world’s largest physical gold exchange, is a topic familiar to many. So it is not surprising that trading volumes at the SGE continued their dramatic rise in 2016, with a record 24,338 tonnes of gold traded across physical delivery and deferred settlement contracts.

With neither the CME nor the ICE gold futures contracts registering any trades as of yet (according to their websites), it will be interesting to see how this drama pans out.
Will they be dud contracts, like so many gold futures contracts before them that have gone to the gold futures contracts graveyard?