In this context Loco London, simply refers to the fact that London is the location where precious metals are physically held and settled.

The metal leg of much of the global ‘over-the-counter’ precious metal trading is cleared through the London clearing system, managed by the London Precious Metal Clearing Limited (LPMCL), which operates a central electronic metal clearing hub, with deals between parties throughout the world settled and cleared in London.

The fact that many Government Institutions and Central Banks entrust their gold to the Bank of England, and in some instances with the London clearing commercial banks, underlines the confidence that exists in London as the key marketplace for precious metal trading.