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Linked-in/Ross Norman/5-12-2020
“But then we saw the growth of the internet, and the access we gained to the futures exchanges through this new route changed the way we trade, with the Comex gold contract leading the pack. Traders could suddenly trade with the entire world, irrespective of credit lines or bilateral agreements. Liquidity was plentiful and the tools it brought to help the traders were game changing. Running your order book electronically meant traders could be more efficient and this grew the ways we traded even further. Plug your Comex feed into your own software and it would send, or stream, prices to your customers over in house trading platforms which would automatically hedge itself with futures. Progress in the last two decades has been unprecedented.”
USAGOLD note: Ross Norman draws on his many years of experience in the gold business to offer solid background on how the contemporary gold market works – COMEX, the London trade, etc. If you are interested in the internal workings of the international gold market, this article is a good place to begin your journey. He finishes with his take on what happened last month when “all hell broke loose.”