GOLD TRADING will be launched at the Korea Exchange (KRX) in Seoul, South Korea's Ministry of Strategy and Finance has said, in a bid to formalize an annual gold market worth perhaps $4.2 billion.
Some 70% of Gold Trading in South Korea happens on the black market, the government estimates. To encourage use of the new Gold Trading platform – scheduled for Jan. 2012, and now at the consultation stage – import tariffs will be lowered from 3% to 1% for gold that's then deposited as KRX inventory.
There will be no additional tax on Gold Trading at the exchange.
Seoul's news comes as the Shanghai Gold Exchange – Asia's largest formal Gold Trading exchange outside Tokyo – said turnover in its spot gold contracts rose 22.6% in 2009 to reach a record CNY 1.1 trillion ($162bn).
Gold Trading worldwide remains centered in London, with turnover in May 2010 rising to perhaps $90 billion per day. Unlike New York's Comex, Shanghai or the proposed Seoul platforms, London is an "over-the-counter" market, with buyers and sellers dealing directly with each other at their own agreed price.
The only standardized part of each trade is the delivery unit – large, 400-ounce bars, approved as Good Delivery by the strict protocols of professional trade association the London Bullion Market Association.
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