It rained money for gold and silver markets in 2008
13 Jan 2009, 1651 Hrs

Add comment          Mail          Print          Write to Editor

London, Jan.13 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)

Related Latest

Indian Government says it has a plan to deal with Maoist violence Sarah Palin finally acknowledges her 'mistakes' during 2008 vice-presidential campaign Therapy 32 times more cost effective than money in boosting happiness Kerala IT park projects get SEZ status Disinvest, use money for green assets: Finance Commission chief Hand ball incident: Henry did not mean for it to happen, says Becks Large gold, silver mine inaugurated in Mexico IAAF denies allowing Caster Semenya to keep her gold medal Musharraf funnelling money to aides to improve his image ahead of return: Report Jharkhand parties fight it out over Koda

Related Latest

Eva Herzigova, Helena Christensen, Claudia Schiffer bare all for mag shoot Ancelotti urges Chelsea stars to slow down A-listers set to watch Ledger's 'The Imaginarium of Doctor Parnassus' Brit woman marries again after losing 10 stone for perfect wedding pics! Asif targeting Kiwi series to announce his Test comeback Yechury condemns attack on IBN news channels Fabregas just cannot satisfy Arsenal coach Wenger Acid oceans make fish "fatally attracted" to their predators France's battered reputation could help Liverpool Musharraf enjoys world powers' sympathies, trial doubtful: Baloch leaders

• Eva Herzigova, Helena Christensen, Claudia Schiffer bare all for mag shoot
• A-listers set to watch Ledger's 'The Imaginarium of Doctor Parnassus'
• Ancelotti urges Chelsea stars to slow down
• Brit woman marries again after losing 10 stone for perfect wedding pics!
• Asif targeting Kiwi series to announce his Test comeback

• भारतीय क्रिकेट की मजबूत दीवार
• कंगारूओं के आगे ढेर, चीतों से कैसे मुकाबला करेंगें शेर
• Reducing greenhouse gases may not be enough to slow global warming
• बीकानेर महापौर चुनावः एक विश्लेषण
• Deepawali: The Festival Of Lights