therealasset.co.uk / by JAN SKOYLES / FEB 24 2014
A month ago we looked at an archaic part of the gold investment market – the London Gold Fix - and outlined what it was and asked if it even mattered anymore.
A huge amount of attention has been placed on the 100 year old process in recent months, as regulators around the West begin to question its legitimacy. As we explained last month, BaFin, the CFTC and the FCA, have each purportedly taken a look at the gold price fix and just how much ‘fixing’ is going on.
Following (rumoured) intense scrutiny into their involvement in the London Gold Fix, Deutsche Bank recently announced that they were looking to sell their seat at the prestigious table. This came as part of an ongoing process by the bank to remove themselves from the commodity markets.
We questioned, back in January, whether or not anyone would even want the seat given the scrutiny the entire process is currently facing.
We also raised the issue of China’s concerns that the gold price setting mechanism was not transparent enough and would be pushing for gold price discovery to become something that they too could be a part of.