Call for London Gold Fix to be reformed
The process to determine the price of gold could be set to change.
Twice daily in London representatives from four investment banks, Barclays, HSBC, Societe Generale and Scotiabank meet to fix the price.
How do these city figures reach the benchmark price, what are the influencing factors? No information is published.
Now the World Gold Council – the marketing body for the gold industry – is holding a conference, “to explore reform”. Pressure is mounting on the banks.
Mining companies, refiners, central banks and bullion banks – the main users of the benchmark price will be able to have their say.
Industry regulation, transparency, technology – none of those were present when the gold fix was introduced almost a century ago.
Modernisation is imperative because of those factors and to maintain trust across the industry says the WGC.
The London silver fix which operates in a similar way will be abolished in August, setting perhaps a precedent for gold.
So soon we may all have a clearer idea of the reasons behind the price we have to pay for gold.
Twice daily in London representatives from four investment banks, Barclays, HSBC, Societe Generale and Scotiabank meet to fix the price.
How do these city figures reach the benchmark price, what are the influencing factors? No information is published.
Now the World Gold Council – the marketing body for the gold industry – is holding a conference, “to explore reform”. Pressure is mounting on the banks.
Mining companies, refiners, central banks and bullion banks – the main users of the benchmark price will be able to have their say.
Industry regulation, transparency, technology – none of those were present when the gold fix was introduced almost a century ago.
Modernisation is imperative because of those factors and to maintain trust across the industry says the WGC.
The London silver fix which operates in a similar way will be abolished in August, setting perhaps a precedent for gold.
So soon we may all have a clearer idea of the reasons behind the price we have to pay for gold.