What is the London Bullion Market Association?
Wholesale gold and silver bullion markets in London, is run by the London Bullion Market Association, abbreviated to "LBMA. It 'was founded in 1987 with the aim of regulating the traditional market of gold in London, in collaboration with the Bank of England.'m currently working with the Financial Services Authority, which is the main regulator of the gold market in the United Kingdom.
It comprises 14 market-making members of the dealers, and 52 normal dealership, which can bebrokers or bankers. Five market-making members of the LBMA meet twice daily to fix the price of gold. This procedure is also called the gold fixing. E 'liability of members to maintain the LBMA Good Delivery List, which means that only those refineries that have been approved to satisfy the stringent requirements of Good Delivery. Standard gold and silver bullion for delivery have a good end and 995 must weigh 400 grams. Method to determine the quality of all the refineries regularlycontrolled by the Pro-active monitoring program.
Spot prices are made for the gold and silver Loco bar in London, but in reality they are kept in a place of a Swiss bank account. The reason for the loco-London-concept as a permanent lesion, is the fact that in the mid-nineteenth century London, is the center for refining and sale of gold in South Africa, Australia, California and broken. As a result, the distribution of the London bullion houses had prestigious clients around the world. Goldtraders and other people in general, spot-accounts in London in every commercial houses in London, whose membership of the LBMA is mandatory. Gold trading in the accounts is made at the same pattern as in any other foreign currency accounts.
Hours with a LBMA is 9-5-trading, but informal began at around 7:15 and end at 7:15. States following the same routine, including the time for fixing the price of gold. Every day at 10:30 and 3:00, fiveSelected members met behind closed doors to establish the House of Rothschild. The President started the gold setting by specifying a certain price based on the pre-fix business. All suppliers to participate, indicating that their prices until the President decides on the final price of the day.
Until 1997, the LBMA activities are kept secret. Therefore, the actual size of the gold market was not known. An estimated 30 million ounces of gold were completed every dayLondon Gold Market Association, but the exact figure is not yet known.
Each year the Association elected or re-elect a president in its annual general meeting, the LBMA is strongly supported by some necessary facilities such as arches, cleaning and documentation standards. One of the primary functions LBMA is the promotion of trust, good business practices and develop standard documentation required. LBMA has maintained high standards of goodsupply, gold down, and monitoring system to ensure a reliable system of gold trade, and to prevent all types of hazards.