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Gold, Silver saw increase in trading activity in August; London vaults at record levels - LBMA

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(Kitco News) - According to the latest trade data from the London Bullion Market Association, trading activity in the precious metals market saw a sharp increase in August.

The increase in activity came as gold prices pushed to an all-time high above $2,000 an ounce. Silver prices rallied to a multi-year high above $30 an ounce.

Not only did the gold market see a lot of movement in August, but investors continued to pile into the precious metals as the LBMA said that gold and silver held in London vaults reached record levels for the fourth consecutive month.

“As of the end of August 2020, there were a record 8,955 tonnes of gold, valued at a record high of $563.5 billion,” the LBMA said in its latest clearing statistics report. “There were also 33,390 tonnes of silver, valued at a record high of $29.4 billion.”

Looking at trading activity, the LBMA releases clearing statistics each month, showing the net volume of gold and silver transferred between accounts of members, essentially providing a snapshot of the amount of trading activity.

According to the report, the volume of gold ounces transferred in August rose 15.2% month-on-month to 22.1 million ounces.

The value transferred fell 23% to $43.5 billion. There were 5,077 transfers in August, 24% higher m/m, with the clearers settling on average 4,354 ounces per transfer, 7.1% lower m/m.

Meanwhile, the number of silver ounces transferred in August was also up, rising
7.4% to 339.3 million ounces, the LBMA said.

However, with the sharp rise in the silver price, the value transferred surged by 41.5% to $9.12 billion, the highest level since March 2011. There were 3,087, with the clearers settling on average 109,929 ounces per transfer

In August, the average gold/silver price ratio fell for the fourth consecutive month to 72.3, down nearly 20 points from the previous month.

“This is the lowest monthly ratio since April 2017,” the LBMA said.

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