Oh Really? LBMA To Reveal Size Of London’s Gold Market On November 20th

The LBMA has an initiative to make the gold market more “transparent”. Thanks, but this is too little, too late. We know how the gold silver markets work.

Here’s what the LBMA says they will do to accomplish this transparency… 

From Reuters we learn we are about to get the “most accurate picture yet” on London’s gold market (bold added for emphasis):

The London Bullion Market Association (LBMA) will begin publishing data on November 20 that will provide the most accurate picture yet of the size of London’s gold trade, its chief executive said on Monday.

London is the world’s largest gold market but because most transactions are done bilaterally between banks, brokers and traders reluctant to reveal their activity, its true size remains a mystery.

The closest approximation is clearing data which suggest gold worth around $25 billion changes hands each day, but this data contains only transactions which reach settlement in London.

Let’s explore that a little further.

According to David Jensen’s research, in the 2011 liquidity survey, only 64% of traders even reported:

More from the recent Reuters article regarding the coming November 20, 2018 LBMA transparency initiative.

The initiative is part of a push to make the gold market more transparent after accusations of price manipulation by banks and traders and pressure from regulators.

There are so many ways we can take this article with that sentence, but let’s just take it old-school with the late Adrian Douglas as he described the LBMA in 2010 at a CFTC hearing on precious metal price discovery.

Just two summers ago the LBMA’s CEO described their market as being potentially ‘shark’ infested ink colored water.

Who doesn’t want to swim in that kind of market, right?

 

So the LBMA is just going to start coming clean with fully disclosed data after all of these years?

Sure they are…

 

For a deep 20 minute dive on unallocated LBMA gold derivatives and other undeliverable gold ETF stooges who pay large annual fees to own them.

Have a listen to Ronan Manly as he picks apart some of the sordid over-leveraged LBMA gold market facts in fine detail.

 

LBMA Ronan Manly on over leveraged LBMA Gold market and Gold ETF problems ongoing Silver Doctors Real Vision

 

In short, stick with bullion, avoid the derivatives.

The Hunt Brothers would likely suggest the same, having learned the hard way that leveraged derivative casinos (e.g. COMEX) can and do change their rules, overnight.