<P> The bulk of global trading in gold and silver is conducted on the over-the - counter (OTC) market . London is by far the largest global centre for OTC transactions followed by New York, Zurich, and Tokyo . Exchange - based trading has grown in recent years with Comex in New York and Tocom in Tokyo generating most of the activity . Gold is also traded in forms of securities, such as exchange - traded funds (ETFs), on the London, New York, Johannesburg, and Australian stock exchanges . </P> <P> Although the physical market for gold and silver is distributed globally, most wholesale OTC trades are cleared through London . The average daily volume of gold and silver cleared at the London Bullion Market Association (LBMA) in November 2008 was 18.3 million ounces (worth $13.9 billion) and 107.6 million ounces (worth $1.1 billion) respectively . This means that an amount equal to the annual gold mine production was cleared at the LBMA every 4.4 days, and to the annual silver production every 6.2 days . The Gold Anti-Trust Action Committee claims that clearing data substantially understates the true amount of gold traded, due to the netting of trades in the calculation of Clearing Statistics . They claim the LBMA market is $21.6 billion per business day ($5.4 trillion a year). </P> <P> Allocated accounts are accounts held by dealers in clients' names on which are maintained balances of uniquely identifiable bars, plates or ingots of metal' allocated' to a specific customer and segregated from other metal held in the vault . The client has full title to this metal with the dealer holding it on the client's behalf as custodian . To avoid any doubt, metal in an allocated account does not form part of a precious metal dealer's assets . </P> <P> Unallocated accounts represent the most popular way of trading, settling and holding gold, silver, platinum and palladium . Transactions may be settled by credits or debits to the account while the balance represents the indebtedness between the two parties . Credit balances on the account do not entitle the creditor to specific bars of gold or silver or plates or ingots of platinum or palladium but are backed by the general stock of the precious metal dealer with whom the account is held . The client in this scenario is an unsecured creditor . </P>

When does spot delivery take place in the london bullion market