Author: Lawrence Williams
Posted: Wednesday , 05 Mar 2014
LONDON (MINEWEB) -
Perhaps the clue to the argument should be in the name – the Gold Fix or Fixing – the daily meetings between the five bullion banks which set the London agreed gold price morning and afternoon, which much of the gold market uses as benchmark pricing. The silver price is ‘fixed’ similarly once per day.
One of the definitions of the word fix from the Oxford Dictionary is,“A dishonest or underhand arrangement”, and, while the London Gold Fix dates back to 1919, the word and this is perhaps a more modern interpretation of the word , it does thus have connotations which may in itself raise doubts about the financial integrity of the overall process.
Thus this ‘fixing’ mechanism has been coming under increased scrutiny, perhaps following on from the LIBOR scandal whereby benchmark interest rates had been manipulated in favour of some of the participants setting them. ...