IB Spot Gold and IB Spot Silver are simple, efficient, flexible and low-cost ways to gain long and short exposure to the gold and silver markets.
A Troy Ounce is the traditional unit of weight used for precious metals. The term derives from the French town of Troyes, where this unit was first used in the Middle Ages. One troy ounce is equal to 1.0971428 ounces avoirdupois. In the bullion market, all references to ounces mean troy ounces.
The Loco London Spot Price is the basis for virtually all transactions in gold and silver in London. It is a quotation made by dealers based on US dollars per fine ounce for gold and silver. IB's liquidity providers provide quotes based on this price, including a spread. Settlement and delivery for gold and silver are two good business days in London after the day of the transaction (T+2).
IB Spot Gold and IB Spot Silver are considered "unallocated", which represents the most popular and straightforward way of trading gold and silver. Credit balances are backed by the general stock of the bullion dealer who has the gold or silver, and debit balances represent the indebtedness of the client to the bullion dealer. In other words, a position in gold or silver is not an entitlement to specific bars of gold or silver, although the latter can be arranged on request by contacting IB Customer Service. There is an Unallocated Carrying Fee of 10 basis points charged for storage. IB Spot Gold and IB Spot Silver are traded through your margin account, and you can therefore enter long as well as short leveraged positions.
Eligible customers must apply for Metals trading permissions via the Trading Permissions page in Account Management.
Metals are maintained in a segregated IB UK L account in Account Management. To trade gold, you must deposit or transfer cash into your IB UK L account using the Fund Transfers page in Account Management.