Why is it called spot gold is called London gold

Novices who do spot gold investment often have such a question: why is spot gold called London gold? Is spot gold only tradable in London? For this question, gooe gold editors collected relevant information for everyone. Let's understand the origin of the name of spot gold.

Why is the spot gold called London gold?

In fact, London gold in the narrow sense refers to 400 ounces of gold of 99.5% purity stored in the underground vault of the City of London. The broad sense of London gold refers to all spot gold that is traded.

This is because spot gold investment originated in London, England. Initially, the pricing of London Gold was in the "Gold Room", which is located in the center of London, England.

However, on September 12, 1919, the representatives of the five major gold banks gathered for the first time in the "Golden House" to set the daily gold price in the London gold market. Therefore, the international gold price has its complicated pricing procedures.

How to price spot gold?

Rothschild determined an appropriate opening price based on the price of the New York gold market after the closing of the London market the night before and the price of the Hong Kong gold market that morning. The remaining four companies will send representatives to report the opening price to their respective companies at the time of opening Trading room.

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Subsequently, each company's trading room will conduct a series of transactions at this price, thereby generating the latest gold price and telling the customer. At this time, Reuters will present the price to the computer system of the respective trading room.

What are the advantages of spot gold?

Spot gold is a trading product in the form of margin. Its main advantages are:

1. Two-way trading is possible, either buying up or buying down, so that investors have the opportunity to make a profit in any market;

2. Spot gold is traded in the form of margin, a highly leveraged trading mode, investors can use small broad;

3. Spot gold has a T + 0 trading mechanism, investors can close positions at any time during the trading process, and make profits in a timely manner;

4. Spot gold trading is open all over the world, therefore, the trading day can be traded 24 hours, so that investors do not miss any good market;

5. Spot gold has no limit of ups and downs. In the big market, investors can quickly earn high profits.