LONDON (Scrap Register): The World Gold Council (WGC) is considering a global standard for 1 kilogram gold bars so they could be used as collateral in futures markets and potentially encourage demand.
The aim of standardizing Gold is to include companies from the world of gold refining, banks and brokers that trade the precious metal in the futures and physical markets, and the London Bullion Market Association (LBMA).
It also plans to create a standard for kilobars that can be adopted around the world, delivered anywhere, possibly using blockchain to identify the bars, their origins.
The kilobar measure dominates Asian trade as Gold contracts on the Shanghai Gold Exchange, Shanghai Futures Exchange, and Hong Kong Exchanges and Clearing are all in kilobars.
Top consumer China imports about 95 percent of Gold in kilobars, while second-largest consumer India imports 80 percent in kilobars.
