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Quantitative Finance · Glossary

What is Loco London, unallocated gold?

Also known as: loco London · unallocated gold

Definition 8.7 Markets III: Commodities, Energy and Crypto · Chapter 8 — Metals

Loco London is the convention that a price is for gold (or silver) delivered in London, settled through the London clearing system of unallocated accounts. Unallocated gold is a balance of gold in an account with a clearing bank: the holder owns no specific bars, only a claim on the bank for that weight of metal, and is an unsecured creditor of the bank.

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