A loco swap exchanges equivalent quantities of gold between two delivery locations — essential for aligning physical positions with trading and settlement requirements without moving metal.
Request Consultation About LCOREA loco swap is one of the oldest instruments in the bullion market — originating in the London market where "loco" simply means "at the location of." To sell gold "loco London" means selling gold that is physically in London. A loco swap exchanges those location rights.
Party A holds 500 kg loco London. Party B holds 500 kg loco Abu Dhabi. They agree to swap: A takes Abu Dhabi ownership, B takes London ownership. No bar moves. Documentation transfers. Done in hours.
Transport cost for 500 kg London to Abu Dhabi: ~$15,000–25,000 + insurance + customs. A loco swap costs a fraction of this and completes same-day. The loco basis (price differential) reflects supply/demand at each location.
Loco swaps are the standard mechanism used by central banks, LBMA members, and commodity trading houses to rebalance geographic gold exposure. London, Zurich, New York, Singapore, Abu Dhabi are the primary loco centres.
LCORE's vault position — ADGM-licensed, LBMA-compatible metal, pre-customs airport location — makes it a natural loco swap counterparty for parties seeking Abu Dhabi exposure without physical shipment.
A mining company or trader with London loco gold can obtain Abu Dhabi vault rights via loco swap with LCORE — gaining UAE neutral jurisdiction without shipping the metal out of London.
A party with Abu Dhabi-stored gold needing London delivery can swap with an LBMA member — obtaining loco London rights while LCORE retains the physical metal in Abu Dhabi for another counterparty.
For commodity trade settlements, a loco swap can transfer gold rights from one jurisdiction to another as part of the payment mechanism — particularly useful when the physical bar does not need to move.
LCORE accepts and stores LBMA Good Delivery bars. This ensures the metal is acceptable to any LBMA member as a loco swap counterparty — full interoperability with the global bullion market.
| Counterparty | Objective | Loco Swap Role |
|---|---|---|
| Central Banks | Rebalance geographic reserves | Transfer rights London ↔ Abu Dhabi without shipment |
| Trading Houses | Reduce transport / insurance costs | Swap location rights between vault centres |
| Commodity Funds | Meet redemption in specific location | Obtain local vault rights via swap |
| Exporters with blocked USD | Transfer gold value cross-jurisdiction | Rights transfer without physical movement or SWIFT |
Institutional loco swap enquiries. LBMA-compatible metal. ADGM-licensed vault. Minimum $5M.