London gold market is not a real trading place, but an invisible market connected by the sales networks of major gold merchants. The members of the Exchange are composed of five major gold merchants such as HSBC, scotiabank, Lochiel International Investment Bank and Deutsche Bank, as well as some enterprises that have been recognized as qualified to buy gold from them, and then expanded to various processors, small and medium-sized shops and companies. At the time of trading, gold merchants quote their buying and selling prices according to their respective buying and selling prices. The purity and weight of gold can be selected. If customers demand to sell in distant areas, gold merchants will also quote freight and premium, and can also quote futures prices according to customers' requirements. At present, the most popular way to buy and sell Loco-London gold is that customers can buy spot gold without paying cash, and only need to pay at the agreed interest rate at maturity, but at this time, customers can't get physical gold. This way of buying and selling gold is just to play a number game on the accounting books until the customer performs the opposite operation to close the position.

The standard gold delivered in London Gold Market has a purity of 99.5% and a weight of 400 ounces.

At present, the four major pricing banks in London gold market are: Lochiel International Investment Bank (N M Rothschild & amp； Sons Limited); Scotiabank (scotiabank-); Deutsche Bank; Hsbc USx. On June 5438+10/October 65438+February 2004, Bossido, Credit Suisse Bank, withdrew from its precious metal market making, financial derivatives, clearing and inventory business in London, new york and Sydney. The withdrawal of Credit Suisse provided gold producers with the opportunity to enter the London Pricing Committee. Many gold mining companies want to buy this position at present.