Participants in the international gold market can be divided into international gold dealers, banks, hedge funds and other financial institutions, various legal institutions, private investors and plays a significant role in the gold futures trading brokerage firms.
(1) international gold dealers (market makers): The most typical is the London gold market on the five gold, their own gold trading for all market makers, as with many of the world's major gold and gold dealers have extensive contacts, and its affiliated companies and with many different shops and gold customer contact, therefore, the five gold Chamber of Commerce in accordance with their understanding of the situation constantly quoted bid and offer price of gold. Of course, the gold market maker is responsible for the risk of price fluctuations.
(2) Bank: they can be divided into two categories, one is only acting for clients trading and settlement, can not participate in its sale of gold, to Zurich, represented by three major banks, who act as brokers between producers and investors , play an intermediary role in the market. There are also some self-made business, such as the Gold Exchange of Singapore (UOB), the members have a number of dealers.
(3) Hedge funds: In recent years, international hedge funds, especially hedge funds active in the United States, international financial markets everywhere. In the gold market, down nearly every large company with the Fund to borrow short-term gold in the spot gold market sell-off and in the New York Mercantile Exchange Gold Exchange to build a large number of loan-to-light (empty) position related. Some large hedge funds use and the political, business is often inextricably linked to the financial sector relative to the earlier capture changes in economic fundamentals, the use of management funds to buy a huge space and short selling to accelerate changes in the price of gold market and profit.
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