1. Institutions and places providing services for gold trading
Every successful gold market, institutions and places that provide services for gold trading are actually different. Specifically, it can be divided into tangible market with fixed place and intangible market without fixed trading place. Represented by London Gold Exchange and Zurich Gold Market, it is European. Commodity exchanges have gold trading business, represented by IMM in the New York Mercantile Exchange and the United States, which can be called American; Some gold markets are traded in specialized gold exchanges, such as China Gold and Silver Exchange and Singapore Gold Exchange, which can be called Asia.
European gold trading: There is no fixed place for gold trading in this kind of gold market. For example, the London gold market consists of major gold merchants and their subsidiaries, and gold merchants and customers conduct transactions by telephone and telex. In Zurich gold market, the three major banks buy and sell for customers and are responsible for settlement. The buying and selling prices in London and Zurich markets are relatively confidential, so it is difficult to really estimate the trading volume.
American gold trading: This gold trading market is actually based on a typical futures market, and its trading is similar to other commodities traded in this market. As a non-profit organization, the futures exchange itself does not participate in trading, but only provides venues and equipment. At the same time, formulate relevant laws and regulations to ensure fair and just transactions and strictly monitor transactions.
Asian gold trading: this kind of gold trading generally has a special gold trading place, and gold futures and spot trading are carried out at the same time. Trading is a membership system. Only companies and banks that meet certain requirements can become members, and the quota control of members is extremely strict. Although the number of members entering the trading place is small, their reputation is extremely high. Take China Gold and Silver Exchange as an example: On-site member transactions are conducted in the form of open bidding and oral clappers. Because the gold merchants in the venue strictly abide by their credit, they rarely violate the rules.
2. Participants in gold market transactions
Participants in the international gold market can be divided into international gold merchants, banks, hedge funds and other financial institutions, various legal entities, private investors and brokerage companies that play a huge role in gold futures trading.
International gold traders: The five gold traders in London gold market are the most typical, and they are gold traders themselves. Because they have extensive contacts with major gold mines and gold dealers in the world, and their subsidiaries have contacts with many shops and gold customers, the five major gold dealers constantly quote the buying price and selling price of gold according to their own conditions. Of course, gold traders are responsible for the risk of gold price fluctuations.
Bank: It can be divided into two categories. One is that they only buy, sell and settle accounts for customers and do not participate in gold trading. For example, the three major banks in Zurich act as brokers between producers and investors and play an intermediary role in the market. Some of them are self-employed. For example, in the Singapore Gold Exchange (UOB), many self-employed members are banks.
Hedge funds: In recent years, international hedge funds, especially those in the United States, have been active in every corner of the international financial market. In the gold market, almost every plunge is related to fund companies borrowing short-term gold to sell in the spot gold market and establishing a large number of short positions in the the New York Mercantile Exchange Gold Futures Exchange. Some large hedge funds often take advantage of the countless ties with the political, industrial, commercial and financial circles of various countries, first seize the changes in economic fundamentals, and use the huge funds they manage to buy and sell short, thus accelerating the price change of the gold market and making profits from it.
Various legal entities and individual investors: this includes companies specializing in gold sales, such as major gold mines, gold producers, gold products dealers (such as various industrial enterprises), jewelry companies and private gold collectors, as well as investment companies and individual investors specializing in gold trading. According to the preference for market risk, it can be divided into risk aversion type and adventurer type: the former hopes to preserve and hedge gold and minimize the risk of market price fluctuation. The latter wants to gain benefits from price fluctuations, so they are willing to bear market risks, such as hedge funds and other investment companies.
Brokerage firm: it is a brokerage institution that specializes in gold trading for non-exchange members and collects commissions. Some exchanges call brokerage firms commission rooms. In new york, Chicago, Hongkong and other gold markets, many brokerage companies do not own gold themselves, but only send on-site representatives to buy and sell gold for customers in the trading hall and collect commissions from customers.
3. Relevant supervision and management institutions
With the continuous development of the gold market, in order to ensure the justice and fairness of the market, protect the interests of buyers and sellers, and put an end to illegal transactions such as price manipulation in the market, various places have established supervision systems for the gold market, such as the Commodity Futures Trading Commission (CFFC) in the United States, the Financial Services Authority (FSA) in the United Kingdom, the Securities and Futures Commission in Hong Kong and the Monetary Authority in Singapore.
4. Relevant industry self-regulatory organizations
World Gold Council: A non-profit organization composed of gold producers all over the world, headquartered in London, with offices in all major gold markets. Its main function is to increase the world gold sales as much as possible by guiding the structural changes of the gold market (such as eliminating taxes, reducing barriers, improving the distribution channels of the world gold market, etc.). ), form a stable support for world gold production and establish a positive image in front of all actual and potential gold buyers.
London Gold Market Association (LBMA): Founded in 1987, its main responsibility is to improve the operation efficiency and expand the influence of London gold market, attract investment for London and promote the business activities of all participants (including gold producers, refiners and buyers). At the same time, we will cooperate with relevant British administrative departments, such as the British Monetary Authority, Customs and Cargo Bureau, to maintain London gold.