Gold as an investment

Spot markets

 

Current buy and sell transactions are executed on terms of “spot” with the value date (date of entry/ writing-off of metal and currency) being the second day after that of settling a deal. The international market of current transactions is known as spot market.
Standard lot volume on the spot market is equal to 5 thousands of troy ounces. A troy ounce is a generally accepted measure of weight of precious metals; it is 31.1034807 grams. Such operations are aimed at forming precious metals equity of lending institutions and clients’ requests processing. The starting point of gold price setting is the London market - loco London. The term “loco” means the place of metal delivery. It is the most important condition for operations with precious metals.