Wednesday, May 7, 2025

London Metal Exchange To Cease Trading In Gold, Silver

The London Metal Exchange is exiting the precious metals business. The exchange today indicated that it will be ending its LMEprecious market due to low trading volumes in both gold and silver contracts.

The move comes just five years after the firm attempted to break into the precious metals space, taking on industry giant the London Bullion Market Association, which is backed by both HSBC and JPMorgan Chase. The exchange first offered contracts in precious metals in 2017, backed by Morgan Stanley and Goldman Sachs, whom at the time indicated it wanted to provide more transparency over the pricing of contracts than its peers.

As per Bloomberg, the exchange for a time was somewhat liquid, trading up to 3 million ounces a week at its height, before one major partner, Societe Generale SA, exited commodity trading two years after the contracts first launched. The LBMA, in comparison, trades up to 10 million ounces a day – a far larger figure than that of the LME.

What impact the closure is expected to have on the gold and silver markets is presently unknown, however gold and silver bugs on Twitter expect minimal impact, if any.

Trading of precious metals futures is expected to officially halt “on or about July 11,” on the exchange.


Information for this briefing was found via Bloomberg and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

Endeavour Mining Q1 Earnings: Cash Flow Is King

G Mining Oko West Feasibility: Move Fast, Break.. Nothing?

New Gold Q1 Earnings: What’s Behind The Market’s Surprising Reaction?

Recommended

Brazil Potash Secures Funding In Support Of US$2.5 Billion Autozales Project

Giant Mining Encounters Native Copper As Hole MHB-34 Hits 563 Metres Depth

Related News

Silver Bull Releases Maiden Resource For Beskauga Project

Silver Bull Resources (TSX: SVB) this morning released a maiden mineral resource estimate for its...

Thursday, January 28, 2021, 09:18:37 AM

Karora Resources Produces 29,831 Gold Ounces, Posts $69.6 Million In Revenue For Q2 2021

Karora Resources Inc. (TSX: KRR) announced this morning its operational and financial results for Q2...

Monday, August 9, 2021, 08:38:08 AM

Pure Gold Sees Operations Resume Following Red Lake Area Fire

Pure Gold Mining (TSXV: PGM) has seen its operations at its Madsen property resume following...

Monday, August 17, 2020, 12:43:44 PM

Gold Is A Key Way To Store Value, Not Speculate – The Daily Dive feat John-Mark Staude

Today on the Daily Dive, we see the return of regular guest John-Mark Staude, CEO...

Thursday, April 22, 2021, 01:30:00 PM

US Election and COVID-19 Vaccine Could Interfere With Gold’s Trajectory Path to $4,000

Amid the increasing global volatility, and financial uncertainty, many investors have flocked to gold assets...

Monday, August 10, 2020, 10:58:13 AM