London vault gold stocks hit a record high for six consecutive months

SMM: the latest data from the London Gold and Silver Market Association (LBMA) shows that the physical gold inventory in London vaults reached a new high for the sixth month in a row.

By the end of October, its London vault had a total of 9350 tons of physical gold, worth $565.7 billion, according to the data. The physical silver inventory is 33440 tons, worth 25.4 billion US dollars.

Judging from the inventory data, although the price of gold is in a state of consolidation during this period, investors still believe in the safe-haven value of gold.

On the other hand, trading volumes in both gold and silver fell in October.

Gold trading volume in October fell 16.2 per cent month-on-month to 15.8 million ounces, the lowest level in five years, according to LBMA.

The trading value of gold fell 17.2 per cent to $30 billion from the previous month. A total of 4156 transactions in October, down 11 per cent from the previous month, averaged 3794 ounces per trade, down 5.9 per cent from the previous month.

Silver trading volume fell 21.5 per cent month-on-month to 226.7 million ounces in October, the lowest level since August 2019.

The value of silver trading fell 26.5 per cent to $5.5 billion from the previous month. A total of 1497 transactions were made in October, down 34% from a month earlier, to an average of 151423 ounces per transaction.

The average price-to-silver ratio of gold to silver in the month was 78.4, up from the September average of 74.3.