Overview: The London Bullion Market Association
The London Bullion Market Association is the world organization officially responsible for determining the daily gold price UK per gram. The London Bullion Market Association (LBMA) is responsible for monitoring and controlling the listing of precious metals in the four largest international markets: London, New York, Zurich and Tokyo.
The global structure has two main types of members: first, major international banks (HSBC, Deutsche Bank AG London, Scotia Nova Scotia Bank-Mocatta, Society General Corporate & Barclays Capital and Investment Banking). The second category consists essentially of different dealers and manufacturers of precious metals around the world.
The gold price UK per gram is fixed daily, twice a day; at 10:30 GMT and 15:00 GMT. This is called the London Gold Fixing. The principle is simple; for each of these sessions, five members of the LMBA (their representatives) are present and interact with each other, while simultaneously being in contact with their customers, keeping them informed of developments in the yellow metal.
The opening course is announced at the launch of the session. Then, each member / representative is responsible for relaying the course to its customers.
Gold – The classification
- Investments in gold “physical”
- Investments in gold “dematerialized”
- Investments in gold “physical”
Ingots and bars
There are two main categories of gold bars: the 1 kg ingot and the 12 kg bar. Note, however, that it is also possible to buy gold bars weighing from 5 to 500 grams (mainly used in jewelry or acquired by “small” investors). In the stock market, a gold bar is an ingot weighing more than 12 kilograms, printed with recognizable brands of foundry and tester, and accompanied by a certificate. The buying and selling of gold bars is, generally, a market monopolized by the companies (the private purchasers finding the gold price UK per gram rather inaccessible). Indeed, a bar of gold costs (in general) not less than 500,000 dollars. Not to mention the cost of delivery and storage that are equally important.
They are one of the rare forms of the yellow metal whose value does not necessarily have a direct relation with their quantity in gold. For a collector, the value of gold coins is closely linked to their rarity. However, there is an undeniable evolution of the “consumption” market for gold coins, which now extends beyond the closed circle of collectors to include private investors. Their main advantages (as an investment) remain their relatively affordable gold price UK per gram (relative to bullion, for example), the durability of their value, but also the ease / speed of exchange they offer in case of emergency.
In addition, the liquidity of their market greatly facilitates purchase / sale transactions.
Warning: Many releases are actually fake gold coins and their identification remains difficult for non-experts. That’s why it’s better to go to specialized counters like the Comptoir National de l’Or. The difference between purchase fees and selling expenses is relatively large (around 7%) .
This is the most “popular” form of investment, without question. It is also incidentally the only form that allows you to “wear” your gold. For large investors and industry professionals, gold jewelry is a worthwhile investment as it can be bought in bulk and resold at retail. In general, they avoid jewelry, and prefer specialized agencies, auctions (especially in some countries of East / Middle East where the margin is relatively low). Although the value of a jewel remains subjective, this form of gold is very privileged because of the ease and accessibility of its transactions.