Thursday, October 18, 2007
I was poking around LBMA gold clearing statistics and wondering where the Gold volume went?
As other commodity prices rise near to and exceed long time highs, trading volumes in those commodities rise:
CHICAGO, IL, July 2, 2007 – The Chicago Board of Trade (CBOT®), one of the world’s leading derivatives exchanges, today announced that it set a new record for quarterly trading volume, with 255,947,010 contracts traded during the second quarter of 2007. Total second quarter volume increased by 23 percent compared with the same quarter in 2006. Exchange average daily volume (ADV) reached a record 3,999,172 contracts during the second quarter, up 21 percent over the second quarter of 2006. Volume on the e-cbot® electronic trading platform set quarterly records for both total volume and ADV. Total electronic volume was 200,531,673 contracts, and electronic ADV was 3,133,307 contracts – up 43 percent and 41 percent, respectively, over the second quarter in 2006.
Some volume may have leaked over to the COMEX and some might have leaked into the new ETFs but not 15M OZ. worth per day, and that volume decline is not from some frenzied peak in Gold trading like 1980-81, but from the LTCM/Russian default days when Gold's price was in a contained downtrend from the early '96 peak of just over $400.
I don't have any answers, just speculations at this point, but my curiosity has been whetted.
Posted by Dude at 11:43 AM