Tuesday, August 1, 2017

LBMA finally reveals how much gold they actually have, but can investors believe it?

The world's largest paper gold market on Aug. 1 finally revealed how much physical gold they actually have to backstop the billions of ounces in paper contracts they sell to investors each year.  And the reason that the London Bullion Market Association (LBMA) is doing this is due to a sudden desire to improve transparency in the wake of more and more gold traders moving their business over to Shanghai.

London has long been acknowledged as the biggest gold trading centre in the world, but no one has ever been able to say for sure how much gold is stored in the capital – until now. 
New data has revealed that around 7,500 tonnes of gold was held in London in March of this year – the equivalent of 596,000 gold bars, or £227bn-worth of gold. 
The data was published by the London Bullion Market Association (LBMA) as part of a new drive to provide greater transparency around the gold market and encourage investors to buy into the precious metal. 
Around 68pc of London’s physical store of gold is held at the Bank of England, which has around 5,100 tonnes in its vaults. The Bank looks after the UK’s gold reserves and also holds the metal for other central banks. 
The rest of the gold, or around 2,500 tonnes, is held for use by investors, and traded through banks and other clearing houses that are members of the LBMA.The Telegraph
Since both the Comex and the LBMA allow bullion banks, central banks, and traders to participate in the naked shorting of gold and silver contracts, how far can investors really go in trusting the LBMA's revelations on their physical gold holdings, and this new found morality of providing transparency to the market?

1 comments:

If it can be verified independently... then I believe them. If not-then it's a sham.

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