Gold markets

International gold markets are located in such cities as Zurich, Hong-Kong, London, New-York, Dubai. High demands are placed for quite few participants of these markets. They are usually big banks and specialized companies with indisputable reputation and financial status. International markets provide a quite wide range of operations. No taxes and custom control apply. Big wholesale transactions in precious metals, provided by extensive client network, are conducted 24 hours a day. There are no strict regulations for such transactions; rules are set out by market participants.

Internal gold markets are markets of one or several countries mostly focused on local investors. They are divided into free and regulated. Free markets include most European markets - for instance, ones in Milan, Paris, Amsterdam, Frankfurt-on-Main. Regulated markets are most of the Third World countries markets. On internal markets deals are mostly made with small bars and coins, with native currency as means of payment.

Some markets on the Asian continent are referred to as black markets. Their existence is caused by severe governmental restrictions on gold transactions. Besides black markets there are also so-called closed markets - internal markets with radical organization, where gold import and export are forbidden. However, tax treatment makes precious metal trading unprofitable as internal prices exceed ones on the world market.

Participants of gold markets

Goldminers

Most gold on the market is initially produced by gold mining companies. They can be both small enterprises or big corporations. It is natural that a company´s influence on the market depends on the volume of gold supply. Therefore all market participants pay special attention to the activity of the most influential gold miners.

Industry

This category includes Industrial and jewelry enterprises, as well as companies engaged in gold refining.

Stocks

In some countries on the biggest stocks there are special sections dealing with precious metals and gold in particular.

Investors

Investors have different interests on the market, which results in the variety of investment types in gold instruments. As a rule, the most popular instruments for investors are CFD contracts.

Banking sector

Central banks play different roles on the market of precious metals. They are the biggest operators on gold market, therefore they set out the rules. It should be mentioned, that active sale of reserve gold is not their main goal, though they strive to use reserves actively. National banks have considerable influence on the market, which became especially noticeable in the 90s of XX century.

Mediators and dealers

Professional mediators and dealers on the gold markets are specialized companies and commercial banks. They play one of the most important roles as most of the gold their hands are the first to deal with the gold.

Metal market

Most operations with physical gold are carried out in London and Zurich. Historically, London market has been hosting the biggest volume of gold due to supplies from the Commonwealth Nations (mostly of South African Republic attracted by skilful organization of precious metal trading. Gold was transported from London to continental Europe, and forward to the Middle East.