From Reuters – amazing stuff – Deutsche Bank settles U.S. gold, silver price-fixing litigation – so GATA has been right for years
From Reuters – amazing stuff – Deutsche Bank settles U.S. gold, silver price-fixing litigation – so GATA has been right for years
What happened is the USA passed legislation that made the 200 year old London Gold fixing illegal. Of course the participants in the fixing would always try to set a price to their best advantage and that would include arbitrage to electronic markets as they became available.
Arguably the twice a day fixing, necessary to set a trading price in the pre-electronic age, should have been abandoned when electronic markets became available.
China started it’s own gold price fix yesterday. Presumably they feel immune to US laws.
I have not taken that away from the news re Deutsche Bank.
And a “price fix” as a way to “kick off” the session could be done in a valid non-distorting way by applying some maths to the orders that had come in – taking account of other gold markets around the time zones.
I want there to be a market for gold metal –
– where the ability to deliver metal at a standard and agreed time & place is assumed –
where both buyer and seller agree then a certificate could be delivered –
– where traders can see online a list of buyers and sellers prices and quantities –
– a level playing field for all traders –
– unlike the ASX with HFT –
all open and above board.
Probably over idealistic.