Gold and Silver Trading Figures at High Volumes

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The really interesting thing in the London gold market last month was the number of transactions that occurred. On average, there were 2,530 gold trades cleared through London banks every day last month. That was up from 2,082 daily trades in February, an average of 1,562 trades per day in March 2007, and far, far higher than anything ever seen before.

Clearing volumes of gold and silver through the London interbank market rose sharply in March, confirming what the market already had known: Investors flooded into and out of gold during the past month. There are some interesting aspects of the volume data.

The amount of gold clearing through London banks in March was 25.7 million ounces per day on average. That was up from February (22.9 MM oz) and March 2007 (20.6 MM oz), but it was only slightly higher than the average daily clearing volumes in November (25.2 MM oz), December (25.0 MM oz), and January (25.3 MM oz). The value of these transactions obviously was at record levels, and far exceeded anything ever seen in the London market, going back to the start of the LBMA data availability in late 1996.

The really interesting thing in the London gold market last month was the number of transactions that occurred. On average, there were 2,530 gold trades cleared through London banks every day last month. That was up from 2,082 daily trades in February, an average of 1,562 trades per day in March 2007, and far, far higher than anything ever seen before. While the number of ounces of gold trading was only 59% of the record average daily turnover of 43.7 million ounces in December 1997, the number of trades in March 2007 was 71% greater. The average trade size in December 1997 was 29,527 ounces, worth more than $8.5 million per trade at the $288.74 average price for gold that month. In March 2008 the average trade size was 10,158 ounces. At last month's average price of $968.43, the value of the average London cleared transaction was $9.8 million, surpassing the per-trade value of late 1997.

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