It rained money for gold and silver markets in 2008January 13th, 2009 - 6:09 pm ICT by ANI
London, Jan.13 (ANI): Gold and silver trading registered a record activity since the start of the credit crisis, according to the (IFSL) International Financial Services London’’s Bullion Markets” 2009 report.
In 2008, gold turnover increased 58 per cent to a record 20.2 trillion dollars. There was 39 per cent increase in silver trading during the year to a record 2.6 trillion dollars.
It has been stated that the traditional “safe-haven” appeal of precious metals attracted many investors to this asset class.
Stating the main reason behind the growth in turnover, Bullion Markets” 2009 report says that it was partly due to an increase in prices of precious metals during the year with gold posting an all time high in March of 1,011 dollars per ounce.
The OTC (over-the- counter) market accounted for nearly three-quarters of gold trading and 56% of silver trading. Most of this activity was transacted through the LBMA (London Bullion Market Association).
Daily reported net trading in gold on the LBMA averaged $20 billion in the first 11 months of 2008, up 45 per cent in the same period last year. Daily trading in silver on the LBMA increased 32 per cent to 2 billion dollars. The actual volume of London market turnover is probably three to five times the reported turnover because transactions which are netted out do not appear in the published statistics.
Futures and options trading of gold on exchanges increased more 80 per cent in 2008 to a record 5.1 trillion dollars. Trading of silver increased 60 per cent to a record 1.2 trillion dollars. Exchange traded gold and silver funds have been the strongest source of growth in demand since their introduction in 2003. Comex in New York, MCX in India and Tocom in Tokyo account for most of exchange traded activity.
The main purpose of the research and statistics function at IFSL is to raise awareness of the UK’’s role in international financial markets and to highlight the contribution of financial services to the UK economy. (ANI)
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