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    London's Gold Market, Timeline

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    6bogota9
    London has been a major center of global gold trading since the 17th century. For over 350 years, the city's gold market evolved gradually, with key events including Isaac Newton setting the gold price in 1717, the Bank of England opening the first gold vault in 1732, and the establishment of the London Bullion Market Association in 1987 to oversee the market. While the gold fixing process changed little for over a century, electronic replacing of price benchmarks began in 2014-2015 amid regulatory scrutiny, and new trading platforms are being introduced in 2017 to increase transparency in the over-the-counter market.

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    London's Gold Market, Timeline

    Uploaded by

    6bogota9
    66 views2 pages
    London has been a major center of global gold trading since the 17th century. For over 350 years, the city's gold market evolved gradually, with key events including Isaac Newton setting the gold price in 1717, the Bank of England opening the first gold vault in 1732, and the establishment of the London Bullion Market Association in 1987 to oversee the market. While the gold fixing process changed little for over a century, electronic replacing of price benchmarks began in 2014-2015 amid regulatory scrutiny, and new trading platforms are being introduced in 2017 to increase transparency in the over-the-counter market.

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    London Gold Market, Timeline

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    London’s Gold Market, Timeline

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    London has been a major center of global gold trading since the 17th century. For over 350 years, the city's gold market evolved gradually, with key events including Isaac Newton setting the gold price in 1717, the Bank of England opening the first gold vault in 1732, and the establishment of the London Bullion Market Association in 1987 to oversee the market. While the gold fixing process changed little for over a century, electronic replacing of price benchmarks began in 2014-2015 amid regulatory scrutiny, and new trading platforms are being introduced in 2017 to increase transparency in the over-the-counter market.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    66 views2 pages

    London's Gold Market, Timeline

    Uploaded by

    6bogota9
    London has been a major center of global gold trading since the 17th century. For over 350 years, the city's gold market evolved gradually, with key events including Isaac Newton setting the gold price in 1717, the Bank of England opening the first gold vault in 1732, and the establishment of the London Bullion Market Association in 1987 to oversee the market. While the gold fixing process changed little for over a century, electronic replacing of price benchmarks began in 2014-2015 amid regulatory scrutiny, and new trading platforms are being introduced in 2017 to increase transparency in the over-the-counter market.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    7/10/2017 How Londons Gold Market, the Worlds Largest, Evolved: Timeline - Bloomberg

    How Londons Gold Market, the Worlds Largest, Evolved: Timeline

    By Eddie Van Der Walt


    July 9, 2017, 4:01 PM PDT

    London Metal Exchange starts gold futures trading on Monday

    Until recently, market largely unchanged for about a century

    After a three-decade hiatus, gold-futures trading is returning to London. Its the latest change for the citys bullion market, the worlds biggest
    for over-the-counter trading, and which until fairly recently had remained largely unchanged for about a century.

    Heres a timeline of main events over the past 350 years, according to the London Bullion Market Association.

    1676

    After moving to London from Amsterdam, Moses Mocatta partners with the East India Co. to ship gold to India. The rm he built, the oldest
    member of Londons bullion market, has today evolved into ScotiaMocatta <http://www.scotiamocatta.com/> , part of the Bank of Nova Scotia.

    1717

    As master of the Royal Mint, Isaac Newton set gold at 4.75 pounds an ounce, a price which lasted two centuries. Gold costs about 945 pounds
    ($1,220) today.

    1732

    With gold volume rising in London, the Bank of England opened the citys rst bullion vault
    <http://www.bankofengland.co.uk/publications/Documents/foi/disc070917.pdf> . By then, almost two-thirds of the worlds gold production was
    passing through London.

    1817

    The Royal Mint produced the rst gold sovereigns, replacing the guinea, a coin equal to about a quarter-ounce of gold.

    1871
    https://www.bloomberg.com/news/articles/2017-07-09/how-london-s-gold-market-the-world-s-largest-evolved-timeline 1/4
    7/10/2017 How Londons Gold Market, the Worlds Largest, Evolved: Timeline - Bloomberg

    The BOE began accepting 400-ounce bars (up from 200 ounces previously) -- the traditional size accepted globally today -- to meet demand
    from central banks in Europe for their reserves.

    1897

    The rst silver xing took place at the London oce of Sharps & Wilkins, with dealers Mocatta & Goldsmid, Pixley & Abell, and Samuel
    Montagu & Co. The daily process used by brokers, mining companies and jewelers to trade and set prices would remain largely unchanged for
    more than a century.

    1919

    The rst gold xing took place. Meetings were held in a wood-paneled room at N.M. Rothschild & Sons Ltd.s oces until the process switched
    to a telephone conference call in 2004. Dealers who met in the room each had small Union Jack ags to signal the need to change orders.

    1934

    The U.S. xed gold at $35 an ounce, with the American assay oce buying large amounts of the metal at that price. Londons good delivery
    <http://www.lbma.org.uk/good-delivery-explained> list, which set quality standards for gold bars, expanded to include reneries and mints in
    eight countries.

    1985

    The London Metal Exchange closed its gold futures market after just three years because of a lack of domestic investor and speculator interest.

    1987

    The BOE establishes the LBMA, the international trade association representing and overseeing Londons gold and silver market.

    2014 and 2015

    Silver became the rst <https://www.bloomberg.com/news/articles/2014-08-15/rst-daily-silver-price-set-after-end-of-london-xing> precious-


    metal xing to move to an electronic auction after Deutsche Bank AG withdrew from the old phone system amid a pull-back from
    commodities. Regulatory scrutiny of how benchmarks are set intensied after traders manipulated Libor rates. Platinum, palladium
    <https://www.bloomberg.com/news/articles/2014-11-28/platinum-palladium-price-xings-make-way-for-electronic-system> and gold
    <https://www.bloomberg.com/news/articles/2015-03-18/gold-loses-century-of-tradition-to-technology-in-setting-prices> xings were also
    replaced by new electronic auctions.

    2017

    The LBMA is due to introduce a trade reporting service to boost transparency in the OTC market. The system is being developed by
    technology rm Boat Services Ltd. and and optional trading platform being designed by Autilla Inc. is also set to be introduced.

    https://www.bloomberg.com/news/articles/2017-07-09/how-london-s-gold-market-the-world-s-largest-evolved-timeline 2/4

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