Here are some Trivial Pursuit questions for you:
1) What is the biggest market in the world for a physical commodity?
2) Is the gold market one of the smallest markets in the world for a physical commodity?
I would guess that you answered:
1) Crude oil.
2) Yes. Gold is one of the smallest commodity markets in the world.
If those were your answers, you are wrong. What everybody believes
to be the "tiny gold market" is in fact the world's biggest physically
traded commodity market.
Let's have a look at some facts.
The London Bullion Market Association (LBMA) "over-the-counter"
(OTC) gold market trades approximately 90 percent of the world's
physical gold trade. The amount of gold sold each day is given at the
LBMA's Internet site here:
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