The London market
The most interesting physical market is the London one, created in 1919. In September of the same year the first fixing took place in the offices of Rothschild & Sons with 5 brokers of the City participating: N.M. Rothschild & Sons, Mocatta & Goldsmid, Johnson Matthey, Samuel Montagu & Co. and Sharps Pixley.
In 1987 the London Bullion Market Association (L.B.M.A.) was created which keeps a list of authorized suppliers and analyzers, and whose name appears on the bullion that qualify for “Good Delivery”. Even today at 10.30 and at 15.00 a price is issued by the English Capital that for operators on all 5 continents is an uncontestable official price, irrespective of the place where transactions physically take place.
The Swiss Market
At the beginning of the 1950’s Switzerland opened its doors to gold thanks also to the absence of importation and exportation barriers and, thanks to the experience of members of the Zurich Gold Pool (union of Swiss Banks U.B.S., Società di Banca Svizzera SB.S.and Credit Suisse C.S.), became an important market even if it has not assumed its own rules and accepts the English ones.
The Hong Kong Market
This market began its business in 1910 and is the oldest bullion market and even when the “Gold Standard” existed the price was subject to oscillations. In 1974, when government restrictions on importations were removed, the market developed significantly. It is the main market for physical gold in the Far East, it is open when New York and London are closed and it is the only one that is open on a Saturday. The trade of gold takes place between the main banks in Kam Ngam (Chinese Gold and Silver Exchange Society.
The New York Market
The New York physical gold market was born last due to prohibition (from 1934 to 1974) and when in January 1975 restrictions on the possibility for individuals to hold gold were abolished and the market became free and therefore began to develop strongly. The main operators are J. Aron & Co., Mocatta Metals Corporation, Phillipp Brothers, National Bank of New York and Sharp Pixley.
The Singapore Market
The Singapore gold market created on 1st April 1969, primarily served as a link between London and the other countries of the Far East. In 1978 the Singapore Gold Exchange was created, one of the most important markets for derivative instruments in Asia.
The Shanghai Market
The “Gold Stock Exchange” in Shanghai was opened officially in October 2002, with the role of regulating exchanges of precious metals in a country which had become one of the main producers of jewellery and industrial products that use noble metals. The body founded and controlled by the “People’s Bank of China” unites the main financial and industrial institutions of China and is equipped with an extensive logistics structure to ensure precious metals are sent to manufacturing companies in the various industrial zones of the Country.
In business since July 1995, it was created in order to organize and standardize commercial and financial practices in the Turkish state (one of the major producers and consumers of jewellery) after decades of rigid regulations by the public authorities. Initially under the direct control of the State, the “Istanbul Gold Exchange” was privatized in 2003.
The Dubai Market
DGCX, the “Dubai Gold and Commodities Exchange”, in business since November 1995 covers the role of financial marketplace dedicated to the physical and financial sale of precious metals as a leader in the Middle East. The services offered are not limited to transmitting prices in the national currency, but include the possibility of operating on futures and derivatives. The volume of exchanges of this important institution sees a constant growth rate of over 13% each year.
The financial gold Markets
Numerous paper gold markets developed from 1970 and experienced the greatest expansion from the second half of the 1980’s giving gold a major financial connotation. The Winnipeg Commodity Exchange, in 1972 issued the first future on gold and subsequently also the first option, but the most important market for gold is the New York Commodity Exchange (Comex) where sizeable exchanges are reached.
The Sydney Futures Exchange began to deal in Comex futures in 1986 and these are compensated through the Comex Clearing House Association, and this allows the futures market to continue virtually day and night. Another important market, which began activity in 1982 is the Tokyo Commodity Exchange (TOCOM). The investment in paper gold in the last few years has become increasingly important and goes beyond the tradition image of a safe haven, it has assumed a financial dimension and has become a real business with which a portfolio can be diversified and with minimum capital the investor can operate without additional custody and insurance costs.
Il Sydney Futures Exchange ha iniziato a trattare in Comex futures dal 1986 e sono compensati tramite la Comex Clearing House Association, e ciò permette al mercato dei futures di continuare virtualmente giorno e notte. Un altro mercato importante, che ha iniziato la propria attività nel 1982 è il Tokyo Commodity Exchange (TOCOM). L’investimento in oro cartaceo negli ultimi anni è sempre più importante e va oltre la tradizionale immagine di bene rifugio, ha assunto una dimensione finanziaria ed è divenuta una vera e propria attività con cui diversificare il portafoglio e con un minimo di capitale l’investitore può operare senza aggiunta di costi per spese di deposito ed assicurazione.