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Banks DROPPING LME AG &AU Contracts

No.944772 ViewReplyOriginalReport

>A group of banks that partnered with the London Metal Exchange (LME) to launch gold and silver futures in 2017 is preparing to abandon the project after hoped-for volumes did not materialise, three sources with direct knowledge of the matter said.
>The LME launched the contracts with partners including Goldman Sachs (GS.N) and Morgan Stanley (MS.N), who agreed to promote trade in them in return for 50% of revenues generated.
>Although the contracts had a positive start, with 14.3 million ounces of gold worth around $20 billion and 121 million ounces of silver worth about $2 billion trading on the LME in September 2017, activity then began to fall.
>In 2019 and 2020, a bullion price rally pushed trading in London and on New York's Comex exchange to record levels, with about a billion ounces of gold changing hands in each venue in March 2020. The LME's contracts have not traded since mid-2020.

Tl;dr There was too much interest in physical bullion for the LME (paper contracts) to stay afloat despite backing by major banks