The London Gold Market and Its Role in the Gold Price
If at any time you have considered selling gold jewelry that you have at home, a key question is to know its sale price. In other words, you should know the value of gold. But who sets it and based on what factors? It is therefore time to talk about the London gold market and its role in the price of gold.
This market is in charge of setting the price of this metal and is the world’s largest center for buying and selling gold. Also known as the London Bullion Market Association (LBMA), its origin dates back to the seventeenth century.
At that time the gold merchant Moses Mocatta founded the company Mocatta & Goldsmid, the oldest founder of this market. It is currently called Bank of Nova Scotia. In the mid-nineteenth century, the term London Gold Market began to be coined, made up of five large companies. Although it was not until the late 1980s that the LBMA was established.
How is the price of gold set?
But how is the price of gold fixed on the London Gold market? We summarize it in a simple way. The static price of gold is fixed twice a day. The president of the London Gold Fixing Association begins by announcing the starting price of the gold metal. He announces it to the other four members of the association, who pass on the price to their respective customers.
The next step is that these customers order to buy or sell based on how many orders there are. How long is this process done? Until there is an equilibrium with a maximum difference of 50 gold bars to buy or sell.
4Dreams, your buy gold Madrid connected to the London gold market
After all this explanation, we are not done. Because if you are looking for a reliable place to buy and sell gold in Madrid , you have come to the right place. The reason?
That 4Dreams has a network of stores I buy gold Madrid and I buy gold Toledo with a direct connection to the London gold market. What advantages do we offer then? That we tell you the price of gold today, updated whenever there is any change in its value.
Are you interested in coming to receive the best appraisal for the <strong>sale of gold in Madrid and Toledo? [sv slug=”centros”]
You will be attended by a team of professionals certified by the Spanish Gemological Institute. We will give you a personalized, professional, reliable and 100% transparent service, with sealed scales that will be used for the first time for the appraisal of jewelry that you bring us.