Management Mode

(1) The Financial Services Bureau established by the state is responsible for the management of gold affairs and the operation and management of the London gold market under it in accordance with the national regulations governing gold and silver. The Central Bank of England is responsible for the management of national reserve gold.

(2) National reserve currency gold is bought and sold through the London gold market. Operated by the Bank of England on behalf of the country.

(3) The London Precious Metals Market Association is responsible for the operation and management of the exchange through capital contribution agreements, trading rules, association constitutions, delivery rules, settlement rules and other regulations, and provides transaction protection and is responsible for supervision.

In addition, market makers directly offer quotations to institutional and individual investors, and in the form of postponed delivery, they have built a financial investment gold market based on the spot commodity gold market. The so-called deferred delivery means that investors can buy and sell gold without the need to settle cash, obtain a position extension by paying interest rates and other methods, and realize profits through reverse liquidation operations when appropriate, while physical gold is usually not delivered. This flexible trading model makes the London gold market an excellent choice for institutional and individual investors to invest in gold. It also makes the London gold market a gold investment market with the largest trading scale with market entities covering the world.

 

Buying and sellingedit
 

The London membership market is served by the British HSBC, Scotiabank, Rothschild International Investment Bank and Deutsche, or an invisible market connected through the sales network of each major gold merchant. Banks and other five major gold merchants and some enterprises recognized as qualified to buy gold from them are formed, and then extended to various processing manufacturers, small and medium shops and companies. During the transaction, the gold merchant quotes the buying price and the selling price according to their respective buying and selling orders. Gold's purity, weight, etc. can be selected. If customers require delivery in an earlier area, gold merchants will also quote freight and insurance premiums, and they can also quote futures prices according to customer requirements. The most common way to buy and sell London gold is that customers can buy spot gold without the need to settle cash and pay immediately at the agreed interest rate, but at this time, customers cannot obtain physical gold. This way of buying and selling gold is just a digital game on the accounting books until the customer performs the opposite operation to close the position.

The fineness of standard gold delivered in the London gold market is 99.5% and the weight is 400 tons.
Currently, the four main pricing gold banks on the London gold market are: NM Rothschild & Sons Limited; Mocata Bank of Scotia, Nova Scotia; Deutsche Bank; and HSBC USx. Credit Suisse First Bosto (Credit Suisse First Bosto) withdrew from its operations related to precious metals market making, financial derivatives, clearing and inventory in London, New York and Sydney on October 12, 2004. Credit Suisse’s divestment provided opportunities for gold producers to enter the London Pricing Committee. Currently, many gold mining companies want to buy this seat.

One of the characteristics of the London gold market is that the trading system is very special, because there is no actual trading place in London, and its transactions are carried out through intangible means (the sales network of major gold merchants). Trade members are composed of five authoritative gold merchants and recognized companies or shops that are qualified to buy gold from the top five gold merchants, and then are composed of various processing manufacturers, small and medium-sized shops and companies, and other chain stores. During the transaction, gold merchants quoted prices based on their respective buy and sell orders.

Another feature of trading on the London gold market is flexibility. If customers request to sell gold to remote areas, they can choose the purity and weight of the gold. Gold merchants will also report freight and insurance premiums and futures prices according to customer requirements. The most common way to buy and sell London gold is that customers can buy gold cash loans without cash settlement, and only need to pay interest at an agreed interest rate when they are due, but customers cannot get physical gold at this time. This way of buying and selling gold is just a digital game on the accounting books before the customer performs the opposite operation to close the position.