Gold’s center of gravity moving from West to East

By Jan Krikke – Asia Times

For decades, London reigned supreme in the global gold market. Its vast over-the-counter (OTC) system, built on unallocated accounts, netted trades and trust in paper claims set benchmarks and kept most bullion circulating as a financial instrument rather than plain physical metal.

Today, the London Bullion Market Association’s (LBMA) gold price remains the global reference. But London is no longer the primary venue for most physical bullion transactions, as the physical settlement balance shifts from West to East.