The London Metal Exchange (LME) is currently experiencing a major crisis.
It has become a hotbed for speculative activity that has created a massive spike in the value of all sorts of commodities including gold.
Its trading volumes have exploded, with the most recent being over $30 billion USD in the first 24 hours of trading.
For those who are unfamiliar with the LME, it is a London-based exchange which was founded in 2001 by the US government.
The LME currently offers an array of metal commodities, including gold, silver, copper and palladium, which are traded through a complex process of barter.
Traders at the Lme are allowed to trade between themselves in exchange for precious metals, gold, copper, platinum, zinc and copper-nickel.
This is where the big money comes in, as people are selling their gold, platinum and palladinos and using the proceeds to purchase other metals.
A large part of the gold and silver bullion trade on the Lie is going to the likes of the US Federal Reserve and UK Treasury.
These metals are then traded through the Lmme’s electronic exchange which is able to trade on a global basis.
In recent weeks, this has been a hot spot for speculation, with traders selling their precious metals for pennies on the dollar, and then turning around and selling them back at a profit.
On Tuesday, the Lmer Exchange, which is an alternative to the LMLE, saw its trading volume surge by over $10 billion USD.
However, the most dramatic rise occurred over the weekend, as the Lmet price was above $1,000,000 for the first time in its history.
That’s because of the rise in demand for precious metal bullion, with gold and platinum trading at $5,000 and $1.50 an ounce respectively.
What is Lmer?
Lmer is a new online exchange which uses the exchange’s platform to exchange commodities like gold, palladium and silver, for precious materials like precious metals and gold bullion.
“We have been working with the government of the UK to create a national reserve fund to support investment in metals and precious metals bullion,” said the LMER team.
When the LMer exchange opened its doors, it offered the ability to buy and sell precious metals in exchange.
LMER has also attracted the attention of the Federal Reserve, which has stated that it would be able to support the LMET in the future by using the exchange.
In a press release, the Fed said that it is currently monitoring the situation with regard to the metal exchange and that the LMA will provide information about any regulatory changes that might impact the exchange in the near future.
Meanwhile, other metals have been trading at their highest levels in the past 24 hours, with silver having risen more than 30% in the last 24 hours.
Gold also increased by almost a quarter in the same time period.
And silver has been trading up about 60% in a month.
However, it appears that the gold price may be headed for another correction.
According to CoinDesk, a number of financial analysts are expecting gold to fall by more than 10% to $1k an ounce by the end of the month.
Gold has been one of the most popular precious metals trading on the world markets, and the recent rise in the price of gold has been seen as an indication that there is a lot of money out there for it.
So far, the market seems to have been largely on hold, with only about 10% of trades being completed at this time.
If the market does continue to struggle, the price could go even lower.
If that happens, the next step is to see if the market can recover, as it could do so quickly.
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