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Gold Tries to Get Modern

The LBMA is the group that oversees the world’s largest gold market. They are looking to make some changes. As you can see by the outfits that those people are wearing in that picture, change might be long overdue even in areas outside of trading.

Amazingly, the group does not have a standardized electronic system for doing their transactions. That’s pretty unbelievable to me, but I guess it’s true. Seeing as London’s bullion market “cleared about 21 billion on gold on average each day through the city this year,” you’d imagine they’d have a system that didn’t involve feather pens and ink wells. I imagine it’s pretty difficult to have a transparent system when you don’t have a slick, modern, electronic interface.

On the other hand, the US financial system is as modern as they come and it is rife with corruption. So maybe we could take a page out of the LBMA’s book and tone things down a little.

Regardless, these machinations at the largest gold market will surely play some kind of role going forward. If the new system can lower gold trading costs that might have huge implications for the future of gold (CME: GC.) Still, I just really hope they get those workers some new, less demeaning clothes.