In the news

19 September, 2017

Successful launch of LMEprecious

Following the successful launch of LMEprecious on 10th July 2017, the London Metal Exchange (LME) is now publishing reference prices twice a day. LMEprecious is a contract that allows market participants to trade gold futures on-exchange in London. Initial response to LMEprecious has been enthusiastic. More than 2.5 million ounces of gold was traded in the first week and activity has been increasing steadily ever since. LMEprecious is the first gold futures contract available on the LME since the 1980s and it was developed in partnership with the World Gold Council alongside Goldman Sachs, Morgan Stanley, Natixis, ICBC Standard Bank, Societe Generale and OSTC.

50th anniversary of the Krugerrand

Kruggerrand sales are expected to reach their highest level since the 1980s, amid predictions that demand will be 15 per cent to 20 per cent ahead of last year. Already highly popular, 1.1 million ounces of the South African coins were sold in 2016, equivalent to a 26 per cent share of the global gold bullion coin market.

The Kruggerand’s growing appeal comes exactly 50 years after the coin was launched in 1967. Since that time, more than 53-million ounces of gold, or over 60-million pieces, have been sold in the form of Krugerrands. Originally sold for 27 rand (then worth $35), an ounce of gold is now worth around 17,000 rand ($1,320).

Early home-coming for German gold

Germany has repatriated more than 670 tonnes of gold that it transferred abroad during the Cold War for security reasons. The process took four years to complete, involving 53,780 gold bars, each weighing 12.5kg. In total 374 tonnes of gold was returned from the French central bank in Paris and a further 300 tonnes was shipped back from the New York Federal Reserve. Initially expected to take until 2020, the plan was completed three years ahead of schedule.

Encouraging signs for new tax in India

The Indian government collected more than Rs 40,000 crore (Rs 400 billion) from its new Goods and Services Tax (GST) in the first month following the launch of the new tax. The figures, widely interpreted as encouraging, are expected to increase substantially over time. GST unifies more than a dozen central and state levies and is intended to benefit the Indian economy by increasing transparency and accountability. Under the tax, banks importing gold and precious metals will have to pay a three per cent levy, which can be claimed as input tax credit. Over time, GST is expected to benefit the Indian gold market, by encouraging a more professional approach across the industry.

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