Where do Precious Metals Trade?
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, including gold, silver, platinum, and palladium, are actively traded on various financial markets worldwide. These markets provide a platform for buying and selling precious metals in various forms, such as physical bars and coins, and options contracts, and exchange-traded funds (ETFs). Here are the primary markets where precious metals are traded:
The LBMA is one of the most significant markets for physical precious metals trading, particularly gold and silver. It operates in London and sets benchmark prices for these metals, including the "" and the "." The LBMA facilitates large-scale transactions of physical precious metals and maintains a network of authorized refiners and .
: COMEX, a division of the Chicago Mercantile Exchange (CME Group), is a major exchange for trading precious metals futures and options contracts, including gold, silver, platinum, and palladium.
: TOCOM offers futures contracts for precious metals trading, serving as a key market in Japan.
: Located in Dubai, DGCX offers trading in precious metals futures contracts, including gold and silver.
: MCX is a prominent commodity exchange in India and facilitates trading in precious metals futures and options contracts, including gold and silver.
The SGE is a major exchange in Shanghai, China, where both domestic and international participants trade precious metals, including gold and silver. It plays a vital role in the global precious metals market.
Precious metals are also traded over-the-counter, where participants engage in direct transactions without going through an exchange. OTC markets are common for large institutional transactions and can involve physical delivery or financial settlement.
Precious metals, especially gold and silver, are bought and sold through bullion dealers and banks worldwide. These dealers offer a wide range of products, including coins, bars, and other forms of physical precious metals.
ETFs that track the price of precious metals are traded on stock exchanges. These ETFs allow investors to gain exposure to precious metals without directly owning physical metals.
There are online/digital custodians that offer precious metals for sale and storage, such as:
Individuals and collectors can buy and sell physical precious metals, such as coins and bars, through coin shops, jewelers, and online retailers.
The ability to trade precious metals on multiple global markets contributes to their liquidity and accessibility for a wide range of investors and traders. Precious metals markets are influenced by factors such as economic data, geopolitical events, central bank policies, and market sentiment, making them an important part of the global financial landscape.
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