Loco Gold

Gold is one of the most popular commodities for investment purposes. In addition, gold is also used as a financial or economic standards, foreign exchange reserves and the most important means of payment in some countries. Investors typically buy gold to hedge or safe haven to several crises including economic, political, social or crisis-based currency.

Demand for physical gold has increased significantly from year to year. Yet the world's gold reserves are very limited. Therefore, in some developed countries has provided an alternative investment in the form of gold derivative products to attract a number of margin as collateral transactions (margin trading). Why needed margin?. This is because of the price factor, where the gold price can fluctuate as well as other commodities.

In commodity markets the term "Loco" means "in". Derived from the Latin meaning Locus place. Loco London represents the basis of trade and international settlement of gold and silver in London. Implementation of this market under the auspices of the London Bullion Market Association (LBMA), but not the stock.

Markets physical gold (spot gold) is the world's largest London and Zurich, but London's most prominent. London grew to dominate the gold market when gold became the main currency. Significant discovery in the Urals (Russia) has increased the global gold production in the 18th.

Mid-19th century became the moment for England to dominate world trade and finance, as a source of capital for mining gold, and became the gold standard of the local currency. Thus, London became the center of world gold trading and settlement.

London gold market is a market Over-The-Counter, which means trading is done directly between two parties involved, and not through third parties that govern trading, like stock.
OTC market lasts 24 hours a day and has no formal structure and no central meeting place. Most of the trade conducted by telephone or electronic dealing system.
In today's global financial markets, gold trading in London nearly held all the time around the world. Dikuotasikan bid and ask prices continuously on the financial market information systems that are accessible, such as Reuters.

Gold Fixing Member

• Deutsche Bank Sharps Pixley
• Midland Bank PLC (HSBC)
• N. M. Rothschild & Sons Limited
• Republic National Bank of New York
• Standard Chartered Bank, Mocatta Group