According to some, the tradition trading hub for gold, London, needs modernisation in order to get bigger and better. The company charged with this task is the London Bullion Market Association (LBMA), who are currently evaluating offers to modernise its trading platform. The main plans include proposals such as building an online hub where trades between two parties can be posted and stored in a database. Meanwhile, a different plan to attract more clients is being developed by the World Gold Council (WGC), a mining organisation working for the London Metal Exchange. The WGC is currently negotiating with banks such as Goldman Sachs and Société Générale in the hope of winning future contracts for precious metals in London. If accepted, the proposals are going to change the way gold is being bought and sold in London.
The majority of transactions which total $5 trillion each year in London are made by telephone or electronic communications rooms. These one-on-one deals are similar means to those which gave rise to the precious metals market 300 years ago. Thus, traders and bankers consider the system to provide insufficient transparency in satisfying regulators and attracting new businesses since gold sales prove to be higher in New York and Shanghai.