License required for setting up a virtual gold exchange(spot trading)?

Regulation of gold’s market infrastructure

Parts of the market infrastructure that exists to buy and sell gold are regulated too.

The bullion banks and exchanges that buy and sell gold or gold products, as well as financial advisors and
wealth managers, are typically regulated by their home regulators.

In the UK, the Financial Conduct Authority (FCA) regulates the conduct of several organisations involved
in the gold market, including: Exchanges (e.g. The London Precious Metals Exchange (LME), bullion
banks, the “clearing” banks, financial advisors, and investment and wealth managers.

The FCA also regulates the LBMA Gold Price, the internationally recognised global price benchmark for
gold.

Coins and bar dealers and online platform providers of gold products are not typically regulated.

https://www.gold.org/about-gold/gold-tax-and-regulation

Data, Reports and Licensing

Overview
Clients wishing to use or redistribute the LBMA Gold and Silver Prices require a license. To obtain a
license, or to find out if you need one, please use the online licensing wizard.

The types of licenses and methods of accessing the benchmarks are set out below.

How to access the LBMA Gold Price and LBMA Silver Price Benchmarks
The LBMA Gold and Silver Price Benchmarks are available from data vendors including:

The data vendor codes (including RICs) are available here.

The auctions can be viewed live on the ICE Trading Platform, Thomson Reuters, Bloomberg and
FastMarkets (Bullion Desk).

To view the auctions on the ICE Trading Platform:

 Customers that already have access to the ICE Trading Platform should submit a request through
their ICE Trading Platform administrator
  Customers that do not already have access to the ICE Trading Platform should
contact data@theice.com to put the applicable agreement in place

Transparency Reports are available from IBA and data vendors. The Transparency Reports provide the
volume and price information for each round of the auctions.

IBA also publishes the benchmarks and Transparency Reports on a delayed basis free of charge on
the Historical Data & Reports page. LBMA Gold Price and LBMA Silver Price will be made available on
this page at midnight London time.

Licensing Types
There are five types of license for the LBMA Gold and Silver Prices:

 Usage License is required for any party that:

o Uses the LBMA Gold and Silver Prices in valuation and pricing activities, including (but
not limited to): collateral calculations, rate fixings, pricing curves, discount curves and
forward curves; and/or
o Uses the LBMA Gold and Silver Prices as a reference rate in transactions and financial
products including (but not limited to): swaps, FRAs, options.
 Redistribution License is required for any party that redistributes the LBMA Gold and Silver
Prices to third parties, either real-time or delayed.
 Trading/Clearing License is required for any party that offers trading/clearing of financial
contracts for which the LBMA Gold and Silver Prices are the underlying reference, typically a
trading venue or clearing house.
 Historical Access License is required for any party wanting to access consolidated monthly
historical price files and transparency report data directly from the IBA database. A Historical
Access License is not required where historical data is accessed via a third party distributor or
the IBA historical data page.
 ETP Issuer License is required for the issuance of exchange traded products (ETPs), such as an
exchange traded fund (ETF), where the benchmark serves as, or part of, the underlying
reference.

https://www.theice.com/iba/lbma-gold-silver-price

GOLD.co.uk

Contact Us

Please contact us using the details on the right, or complete our contact form below, and one of our
team will get back to you as soon as possible.
Scroll down to use our interactive Google Map, which details the location of the GOLD.co.uk trade
counter, should you wish to come and deal with us in person. Our office is based in the heart of
Birmingham city centre, just a 30-second walk away from the New Street train station and the Grand
Central shopping centre above it.
Please note that customers buying or selling at our store must bring photo ID (driving license or
passport) and a separate document as proof of address (e.g. bank statement, utility bill).
https://www.gold.co.uk/contact/

Additional license to sell to International customers?

Do you Need a Special License to Sell Gold & Silver ?

If you are buying and selling investment gold you need to let HMRC know so that your supplies are
exempted for VAT.

https://www.ukbusinessforums.co.uk/threads/do-you-need-a-special-license-to-sell-gold-
silver.333064/

https://www.gov.uk/guidance/gold-acquisitions-imports-investments-and-vat-notice-
70121#P66_3262

Invoice requirements for trading in exempt investment gold

Basic information about requirements

There are special notification, invoicing, accounting and record keeping requirements for persons who
trade in exempt investment gold.

The requirements apply when you sell exempt investment gold and the gold is delivered, or otherwise
made available to your customer.

If you do not meet your notification, invoicing, accounting and record keeping obligations you may
become liable for a penalty, see section 9.

The requirements and penalties apply whether or not you’re registered or liable to be registered for
VAT.
Records to be kept for gold delivered or taken away by your customer

If you sell exempt investment gold which is delivered or available to be taken away by your customer,
you must keep the following information as part of your business records. These requirements do not
apply if you make supplies described within paragraphs 7.2, 7.3(a), 7.6 and 8.2.

This applies whether or not you’re registered for VAT.

https://www.gov.uk/guidance/gold-acquisitions-imports-investments-and-vat-notice-70121

Cost of license for gold trading?

The Pure Gold Company, BullionVault and the Royal Mint allow you to invest small sums without ever
actually taking physical receipt of the gold, which is safely stored on your behalf.

What’s more, the Royal Mint has just cut its charges so you can trade gold, silver and platinum at
minimum cost online, from as little as £20.

https://www.express.co.uk/finance/personalfinance/976925/gold-trading-investing-precious-
metals

'BullionVault users also don’t have to go through the rigmarole of getting a storage vault sorted out. We’ve
already done it, choosing security specialists outside the banking sector. Insurance is the same. We’ve
taken care of that too, again at low-cost commercial rates which we share with our users.'

It costs a maximum of 0.5 per cent to buy and again to sell. This falls to 0.05 per cent for amounts above
£485,000.

There is no minimum trade size and there is no minimum commission charge.

You can sell at any time, without penalty, and your money will be wired the next business day. You can
also withdraw your bars.

The storage charge for gold is 0.01 per cent monthly, with a £2.30 minimum and 0.04 per cent monthly
with a £4.60 minimum for silver.

https://www.thisismoney.co.uk/money/smallbusiness/article-2666949/My-website-allows-
ordinary-people-trade-bars-gold.html
Companies offering custodianship?

London Precious Metals Vault Holdings

The data represents the volume of Loco London gold and silver held in the London vaults offering
custodian services.

As at end March 2019, there were 7,671 tonnes of gold, valued at $319.5 billion and 36,195 tonnes of
silver valued (as at end March 2019) at $17.6 billion. This equates to approximately 613,696 gold bars
and 1,206,499 silver bars. The data is published on the first day of each month (in the event that the first
day of the month is a UK Bank Holiday or falls on a weekend, the data is published on the first business
day of the month) three months in arrears.

http://www.lbma.org.uk/london-precious-metals-physical-holdings-statistics

Bank of England

We provide safe custody for the United Kingdom’s gold reserves, and for other central banks. This
supports financial stability by providing central banks with access to the liquidity of the London gold
market. We also provide gold accounts to certain commercial firms that facilitate access for central
banks to the London gold market.

https://www.bankofengland.co.uk/gold

London Bullion Market Association (LBMA)

As a trade association, the LBMA’s central raison d’etre is to represent its members’ interests while
attempting to oversee and control the development and evolution of the London and global bullion
markets. The LBMA also liaises closely with the Bank of England, which has a vested interest in
maintaining oversight in the gold market in London due to its role as gold custodian for many central
banks and due to its role as facilitator of gold lending. Some of the association’s main tasks are
protecting the commercial interests of its bullion bank members, maintenance of the London Good
Delivery List for gold and silver, liaison with financial market regulators and the media, publication of
documentation and statistics relevant to the gold and silver markets, and organising conferences and
seminars. In 2016, the LBMA announced plans to merge with the London Platinum and Palladium
Market (LPPM), a similar trade association for platinum and palladium which is dominated by the same
set of banks.

https://www.bullionstar.com/gold-university/london-bullion-market-association

iShares® Gold Trust

The iShares® Gold Trust (the “Trust”) issues shares (“Shares”) representing fractional undivided
beneficial interests in its net assets. The assets of the Trust consist primarily of gold held by a custodian
on behalf of the Trust. The Trust seeks to reflect generally the performance of the price of gold. The
Trust seeks to reflect such performance before payment of the Trust’s expenses and liabilities. The
Shares are listed and trade on NYSE Arca, Inc. (“NYSE Arca”) under the ticker symbol IAU. Market prices
for the Shares may be different from the net asset value per Share. iShares® Delaware Trust Sponsor LLC
(the “Sponsor”) is the sponsor of the Trust; The Bank of New York Mellon (the “Trustee”) is the trustee
of the Trust, and JPMorgan Chase Bank N.A., London branch (the “Custodian”), is the custodian of the
Trust. The Trust is not an investment company registered under the United States Investment Company
Act of 1940, as amended (the “Investment Company Act”). The Trust is not a commodity pool for
purposes of the United States Commodity Exchange Act of 1936, as amended (the “Commodity
Exchange Act” or “CEA”).

https://www.ishares.com/us/literature/prospectus/p-ishares-gold-trust-prospectus-12-31.pdf

J.P. Morgan

Unallocated gold custodied with J.P. Morgan can be used immediately as collateral, once the
appropriate documentation is completed.

Gold that meets the London Good Delivery unallocated gold standard but which is held in another
London gold vault can be delivered to J.P. Morgan with J.P. Morgan as custodian. As noted earlier, use of
the London clearing system simplifies this process for unallocated gold. In fact, the six clearing firms
form a company called London Precious Metals Clearing Ltd to streamline this process, which in many
cases is a simple book entry.

https://www.jpmorgan.com/cm/BlobServer/Golden_Opportunitiespdf.pdf?blobkey=id&blobwhe
re=1320534214257&blobheader=application/pdf&blobheadername1=Cache-
Control&blobheadervalue1=private&blobcol=urldata&blobtable=MungoBlobs
List of platforms to buy gold online

BullionVault

BullionVault lets private investors around the world access the professional bullion markets. You can benefit from
the lowest costs for buying, selling and storing gold and silver.

BullionVault is the world's largest online investment gold service taking care of $2 billion for more than
75,000 users. It is part-owned by both GBIT and Augmentum Capital.

https://www.bullionvault.com/

UK Gold Bullion

UK Gold Bullion is a leading gold & silver bullion dealer, offering a wide range of gold & silver coins and
bars available from the world's finest mints and refineries. We make buying bullion simple and secure
and pride ourselves on our low margins and excellent customer service.

https://ukgoldbullion.co.uk/

GOLD.co.uk

At GOLD.co.uk we aim to make buying gold and silver as transparent as possible. Our 'how to buy gold'
investment guide provides essential reading for all levels of gold investor whether you are new to gold
or a highly experienced investor.
We cannot offer personal investment or tax advice. This guide aims to offer a useful source of
information and opinions to assist people in making their own informed decisions. If you do require
detailed tax and investment advice, you should seek your own independent advice from an
appropriately qualified adviser.
If you have any further questions about gold investment please feel free to contact our knowledgeable
and friendly advisers on0121 369 3000 who will be happy to guide you through any questions you may
have.
https://www.gold.co.uk/
The Gold Bullion Company

The Gold Bullion Company is located in the heart of England, in Birmingham's world famous Jewellery
Quarter. The Gold Bullion Company offers fine gold, silver and gold coins for investment or gifts at
unbeatable prices. Paul Marcus, its founder has been trading in gold and silver bullion for over 35 years
and is well respected for his honesty, integrity and trust.

https://www.thegoldbullion.co.uk/

Gold Investments

Buy gold from one of the oldest gold bullion dealers in the UK - Trusted to buy & sell gold for over 35
years! Visit our gold shop in London or buy gold online.

We pride ourselves on customer service, providing our customers with tailored solutions on how to buy
gold in the UK for investment. We also offer advice on how to protect your investment portfolio – from
live market data to certified storage vaults. We accept many payment methods, and can give you cash
for gold sold through us (with suitable notice given).

https://www.goldinvestments.co.uk/

UKBullion

UKBullion.com is part of Group International Ltd, wholesale and retail bullion dealers based in the West
Midlands. UKBullion.com is the UK's leading site for buying Gold, Silver, Platinum and Palladium Bullion
Bars. We also sell leading ranges of gold and silver coins such as the Sovereign, Britannia, Maple,
Krugerrand and Eagle coins. We are a top scrap precious metal purchaser offering competitive rates for
your scrap Gold and other precious metal jewellery. You may put your scrap precious metal sale values
towards your Bullion purchases, call us for further details.

We have over 20 years experience in the purchasing and supplying of the finest quality precious metal
products to investors and collectors from our world renowned partners including METALOR, VALCAMBI,
UMICORE, PAMP, EMIRATES GOLD, ISTANBUL GOLD REFINERY, ARGOR HERAEUS and THE ROYAL MINT.
We offer a one-stop shop for investors and collectors who wish to buy, sell or refine Gold, Silver,
Platinum and Palladium Bullion Bars or Coins as well as assaying services for your scrap metal, and for
those looking to sell their scrap Gold, Silver, Platinum and Palladium.
https://www.ukbullion.com/
The Sharps Pixley

The Sharps Pixley name may date back to 1778, bearing the hallmark for old fashioned trust and
discretion, but our outlook is entirely of today...

We’re setting out to simplify and demystify the gold market. To expand the reach of precious metals. To
make them more comprehensible and create new ways that people can invest in them. That’s why
we’ve chosen to bring it to the 'high street' – our showroom in St James's where you can browse, learn
and buy.

It is no secret that Sharps Pixley and our parent Degussa are pioneering new ways of accessing and
promoting these exciting markets... creating a 'new gold standard' if you like. The rationale for owning
physical gold is arguably stronger than ever before.

https://www.sharpspixley.com/

Royal Mint

The Royal Mint is the world's leading export mint, making coins and medals for an average of 60
countries every year. However, its first responsibility is to make and distribute United Kingdom coins as
well as to supply blanks and official medals.

https://www.royalmint.com/invest/

Do the platforms allow Indian users

Indian residents can now buy gold and silver bullion online with BullionVault
Buying professional good delivery gold outside of India is now available to all citizens who are able to
transfer funds abroad. Users resident in India can avoid gold import duty and sales tax, buying gold at
live international rates in their choice of Zurich, Singapore, London or New York.
BullionVault is the world’s biggest online bullion market. It enables users from all over the world to buy
and store gold & silver bullion in professional high security vaults at the latest live gold price. There are
no minimum requirements and users can buy from 1 gram to whole bars.
BullionVault is a full member of the London Bullion Market Association (LBMA). Commission fees are the
very lowest available for retail investors worldwide.
https://www.bullionvault.com/info/in/buy-gold
 Summary
Gold and silver are classed as ‘Mines Royal’. This means that in most cases they belong to the Crown.
Because of this, if you intend to carry out gold and silver exploration for commercial gain, you should
contact The Crown Estate.

You will also need permission from The Crown Estate to take away gold that you may have found or
discovered, whatever the method you have used. However, if you find gold through panning it is unlikely
that The Crown Estate will grant you permission to take it away.

The Crown Estate may sometimes grant you a lease of Mines Royal within a specific area. However, you
will still have to get rights of access to this land from the landowner.

If you want to commercially exploit any Mines Royal, you should contact Wardell Armstrong LLP - The
Crown Estate Mineral Agent.

The London gold market is one of the two main contributors to gold price discovery globally. The market
is the world’s centre for wholesale OTC gold trading, with every major bullion bank represented. London
has the world’s highest gold trading volumes, and gold market participants around the world settle
trades through London using the loco London gold trade settlement concept. London is also unique in
hosting the twice daily LBMA Gold Price auction which is used as the de-facto global gold price
benchmark for pricing transactions in gold markets and gold products around the world.

The LBMA plays a key role in the market by representing the interests of banks and global gold refiners.
The Bank of England is also a major component of the market through its provision of gold custody
storage vaults to central banks and LBMA members. These vaults also play a role in facilitating the
London gold lending market between the central banks and LBMA member bullion banks.

Price manipulation scandals in LIBOR, foreign exchange, and precious metals have led UK financial
market regulators to call for increased transparency in trade reporting. This applies particularly to the
OTC London precious metals markets because of the opacity of the market and because there is no on-
exchange central clearing system and no trade volume reporting.

However, the large bullion banks which run the LBMA and the London gold market have continued to
resist change and transparency. In fact, transparency in the London gold market deteriorated in 2015
even compared to 2014. The calculation and publication of GOFO rates has been discontinued. The use
of exchanges for gold forwards clearing has been discontinued. The LPMCL member banks are not
interested in moving trading and clearing of gold transactions from an over-the-counter to an exchange
based model. Recent moves by the World Gold Council to convince London bullion banks to move to a
central clearing system for gold trades only managed to bring five banks on board with the plan (Morgan
Stanley, Goldman Sachs, Citigroup, Societe Generale, and ICBC Standard Bank), but none of the
incumbent LPMCL members were interested.