The LBMA has completed the first week of its new measure to improve “transparency” in the gold market. Here are the details…
Bloomberg is reporting that the amount of gold traded in London, at least last week, the first week of the new found “transparency” in London, was less than the volume of gold traded on the COMEX.
From Bloomberg –
First, the video reporting:
And some highlights from the article:
London’s gold market owned up to the biggest secret in bullion: it’s not as big as some thought and, for last week at least, smaller than New York’s.
An average of $36.9 billion of gold and $5.2 billion of silver changed hands each day in the city’s over-the-counter market, including metal for delivery in Zurich, according to figures released for the first time on Tuesday by the London Bullion Market Association. Previous World Gold Council estimates, based on 2016 data, were between three and six times higher.
The London gold market, which traces its roots back to 1676, has sought to increase transparency and rebuild confidence after some members faced allegations of price manipulation and of accepting metal from illegal mines. Those measures included publishing vault holdings and modernizing auctions that once took place by phone, while seeking to convince regulators that gold is a highly liquid asset.
And if Venezuela was denied its gold, what about the dozens of other sovereign central banks around the world that are vaulting their gold in London? Is it possible they might fall on the US or the UK’s bad list, and like Venezuela, be at risk of not getting their gold back?
Furthermore, is the Western gold market all of the sudden “transparent” because the LBMA has released some data?
I’ll answer that question with a question: Can the data coming from the LBMA be trusted?
Or, more simply asked, can the LBMA itself be trusted?
Don’t worry, those are rhetorical questions.
But the answers should be obvious.
– Half Dollar
About the Author
U.S. Army Iraq War Combat Veteran Paul “Half Dollar” Eberhart has an AS in Information Systems and Security from Western Technical College and a BA in Spanish from The University of North Carolina at Chapel Hill. Paul dived into gold & silver in 2009 as a natural progression from the prepper community. He is self-studied in the field of economics, an active amateur trader, and a Silver Bug at heart.