A panel of leading authorities in the gold market recently gathered to explore the complex relationship between the London and New York gold markets. The session was chaired by Ruth Crowell, Chief Executive of the London Bullion Market Association (LBMA), and included respected industry figures such as Adrian Ash, Jim Steele, David Gono, and Jeremy East. Together they addressed the structure and functioning of these major trading centres and examined how their interactions shape global gold pricing, liquidity and availability.
The discussion opened with an overview of how London and New York each play distinct but interconnected roles in global bullion trading. London has long been a centre for wholesale bullion clearing, vaulting and refining services and remains a crucial hub for physical gold flows. New York, by contrast, is a major venue for futures, options and exchange-traded product liquidity, providing price discovery and hedging tools that complement the physical market. Panelists emphasised that understanding both the complementary functions and the frictions between these centres is essential for anyone participating in the gold market.
A key topic was the operation of price discovery across jurisdictions. Panel members explored how physical trading in London and derivative and exchange activity in New York combine to establish global benchmark prices. They explained that arbitrage, institutional participation and cross-border flows generally help align prices, but timing differences, settlement conventions and the mechanics of physical delivery can create short-term dislocations. The experts noted that market participants rely on transparent, efficient mechanisms—such as clearing services and well-defined settlement practices—to reduce these discrepancies and reinforce confidence in prices.
Liquidity dynamics also featured prominently. The panel discussed how liquidity in London’s over-the-counter and bullion bank networks interacts with exchange liquidity in New York, helping to absorb large orders and enable smooth market functioning. They observed that market structure changes, regulatory shifts and shifts in participant composition can influence liquidity provision. For example, changes in the availability of allocated versus unallocated gold, or shifts in the behaviour of large institutional holders, can alter both depth and resiliency. Panelists stressed the importance of robust market-making strategies and clear liquidity metrics to ensure markets remain resilient under stress.
Physical gold supply and availability was another major focus. Panel members examined concerns around physical delivery, vault capacities and the logistics of moving gold between storage centres. While global stocks of bullion are substantial, bottlenecks can arise from transportation constraints, customs and insurance requirements, and the operational capacity of vault operators. The experts highlighted the need for precise inventory management and transparent reporting of allocated and unallocated stocks to give market participants confidence in the physical underpinnings of traded positions.
Participants also considered the implications of refiners, mints and vault operators in meeting demand for specific coin and bar products. The panel pointed out that lead times for producing minted products or recasting bars can vary, and that premium levels for retail products often reflect processing and fulfilment costs in addition to metal value. Such factors can cause temporary divergence between spot prices and transactional prices available to end customers, especially during periods of heightened demand.
Regulatory and operational frameworks were discussed as crucial elements shaping cross-border market efficiency. Panelists reviewed settlement conventions, custody standards and reporting practices that influence how London and New York markets interact. They suggested that continued cooperation among regulators, exchanges and industry associations can help harmonise standards, reduce frictions and support robust oversight without undermining market liquidity. Maintaining high standards for chain-of-custody and auditability was emphasised as particularly important for preserving trust in the physical market.
Technology and infrastructure received attention as well. The panel noted that improvements in post-trade systems, electronic matching, and secure messaging can speed settlement and reduce operational risk. Upgrades to vault management systems and more transparent inventory reporting were cited as practical steps that would help mitigate uncertainty about physical availability. At the same time, panelists cautioned that technology alone cannot replace sound commercial practices and that human oversight remains essential, especially in managing exceptional events.
Finally, the experts addressed market transparency and information flow. They underscored the value of timely, reliable data on trading volumes, open interest, and physical stocks to help participants make informed decisions. Greater disclosure around vault inventories, refined product availability and delivery backlogs—without compromising commercially sensitive information—was presented as a way to improve market functioning and reduce the scope for misinformation or misunderstanding.
In summary, the panel concluded that London and New York continue to perform complementary functions within the global gold ecosystem. While challenges exist—ranging from logistical constraints and regulatory differences to liquidity dynamics and reporting standards—the combined efforts of market participants, service providers and regulators can address many of these issues. Clearer reporting, stronger operational resilience, and continued dialogue between the two centres were recommended to support efficient, transparent and well-functioning global gold markets.