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London Bullion Market Association established in 1987 with the brief to represent the interests and well being of all the participants of the bullion market. Within its charter are codes of conduct covering protocol, behaviour and ethics. Membership is open to any wholesale organization involved in the storage, refining, assaying or trading of bullion within the UK.


The level of return a lender of metal can earn for providing market liquidity. Quoted daily on Reuters; its level is a function of the supply and demand for short-term metal.


The process by which the Central Banks (and other holders of physical gold) can earn a return on what would otherwise remain a non-interest-bearing asset. Leased gold provides the necessary liquidity for day-to-day transactions.


  1. Verb. To offer gold or silver coin in exchange for something else in a way that is not illegal. Originally US dollar notes said, “This note is a legal tender for one dollar of gold payable to the bearer”, meaning that the note itself represented tender (offer) of gold by the Treasury to the bearer of the note.
  2. Coins. Officially minted gold coins that may be used to purchase goods and services to the total of their fact value. Since the value of the gold content greatly exceeds the coin’s face value, this rarely, if ever, occurs.
  3. Confusion caused by the misuse of the term on Federal Reserve notes has led to the vernacular use of the term “legal tender” as if it is a noun meaning notes or token coins with which taxes can/must be paid, or which must be accepted in payment of debts if offered. This usage of the term is incorrect.