London gold is not a gold name, is a way of gold trading. In a narrow sense, London gold is a traded product provided by the London International Financial Futures Exchange, and stored in the city of London underground vault in a purity of 99.5% with 400 ounces of gold bricks. Broadly speaking, London gold represents all of spot gold trading.
LOCO London is the international standard for gold and silver trading and settlement. The London Precious Metal Clearing Limited (abbreviated as LPMCL) provides an electronic matching system to effect the daily bullion settlements. Most global over-the-counter gold and silver trading is cleared through the clearing system, with deals between parties throughout the world settled and cleared in London.
Compared with other investment products, such as stock, foreign exchange, futures trading, London gold trading is easier to operate. Main reasons as below: first the gold market is open and transparent, and is difficult to be controlled by Makers; second is that relatively price fluctuation is small, its trading is without time limit; third London gold implements the two-way trading and margin system, you could trade gold paying for a small cash deposit.