Clearing

The London bullion market relies on a daily clearing system of paper transfers.

Members offering clearing services utilise the unallocated gold and silver accounts they maintain between each other for the settlement of mutual trades as well as third party transfers. These transfers are conducted on behalf of clients and other members of the London bullion market in settlement of their own loco London bullion activities.

This system avoids the security risks and costs that would be involved in the physical movement of bullion.