ROMANTIC SPOT

Evening Post, Volume CXII, Issue 8, 9 July 1931, Page 16

ROMANTIC SPOT

BULLION- MARKET

'' Theftbfflib^^arket: most {romanticftft .of 1 'Eondon's .institutions. Every : year many million pounds' worth of solid gold are sold there like.so much merchandise," says a correspondent of the 'Spectator.' "The annual output of gold from the mines of the:world during recent years has langed from £80,000,000 to £55,----000,000, and about three-quarters of this is in tho British Empire. By far' the'largest, producer is South Africa, Whose output last year was about £45,000,000,- and of Ihis rather more -than £36,000,000 was sent to .London for sale.

'-. "There; are "two,ftchannels through which i gold: can- and; Sold— the Bank of-. England;'-aridft'theft"bullion brokers,-. The. tank is obliged-by law to buy all the gold-offered 'to 'it at a 'fixed price .of, : 77s' ; 9d" per* standard ounce/ pan-' spit 1-it' it in.', quantities at:77b c : : lQJd'jper'"standard„.ounce. The South';--&frie'att': ;j gold,;,.howeyer, _is dealt with'-by'th.efbuUioh.'brokers.ft Ship-, ments of vth'isftgpid.:-arrive -by mail steamer evjerfc^os3Jay,. ftwitbft almost -clocklike regmarity/'.aiid, these .aire sold in the, bullion "&arke.t'))n : the'Tuesday;'The bullion brokers ftwho, -by-the way, are: a small and very, :exclusiv'e circle,-arrive -with their.-orders, ahd :s th"e ;pfice the gold fetches :'depends,:lilte 'that ,of any .other commodity, on supply and: demand. The, 'fluctuations, ; small;; '.ft .ft'ftftft ...ftft-ft'-ft.-■'"'-' "'ft ''.■'-'-.•'■•' ft"

'■■"■" The buyers.ftp'f gpld-in-: .the markets: are of-two'"'-classes.:;. There- is ; ■th'e , fttrade, : :that is,.,,those'.'who wantftgoM for commercial fuse, in industry, and foreign banks; ;,desirous of increasing their gald.ftre'sery.es.ftft.ft-Th.e amount of gold bought'byi'foreign, "banks depends rate ijof. exchange at wKch; sterlingft^taiids.ft:'■: Iff-the. rate-is-low foreigner -can"; buy. his pounds cHeajry,ft"gpld-i'is more likely to be bought. 'Any.gold-remaining unsold in the" market, is .sent: to.-the Bank of England,.whiclids-.bpuiid to buy.it." ft.