History of Gold Trading for you

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

Physical gold market ( spot gold ) is the world's largest London and Zurich, but London is the most prominent. London grew to dominate the gold market when gold became major currencies. Significant discoveries in the Urals ( Russia ) has increased the global gold production in the 18th century.

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

Trade Over-the-Counter ( OTC )

London gold market is a market Over-The-Counter which means trading is done directly between the two parties involved, and not through third parties that govern trade, such exchanges.

OTC market lasts for 24 hours a day and has no formal structure and no central meeting place. Most of the trading is done via telephone or electronic dealing system.

In today's global financial markets, gold trading in London held almost all the time around the world. Quoted bid and ask prices on a continuous basis in the financial market information system that can be accessed as Reuters. Besides in London, other major trading center for gold London including New York, Zurich, Tokyo, Sydney and Hong Kong, where the Hong Kong became the center of commerce in Asia.

Why invest in gold ( OTC Spot )

Prices are usually quoted and traded against the U.S. dollar;

Loco London Market can serve multiple purposes such as hedging transactions, investment and speculation;

In the OTC market, investors can maintain their position during the time that they want without any maturity;

Receive interest when selling gold or silver Loco-London final on interest rates;

Transactions leverage on margin;

Investment portfolio diversification.

Gold investment is very safe compared to investments in other areas.