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MoneyGold - The gold marketHistorically, London is the home of gold and silver trading. While records trace bullion transactions back to the 17th century, it was the 1848 Great Californian Gold Rush that propelled the London gold market to prominence. All along, the Bank of England has been closely involved with the gold market and now acts as the regulator of the market. London is truly at the centre of the International Bullion Market. Twice a day five members of the London Bullion Market Association meet to 'fix' the price of gold. This happens at 10.30am and 3.00pm. Each of the members sends a representative to the 'Fixing' who maintains telephone contact with his dealing room. The Chairman of the Fixing, traditionally a representative of NM Rothschild and Sons Ltd., announces an opening price that is reported back to the dealing rooms. They then change prices as necessary to balance demand and supply until the buying and selling interests are balanced. Each member has a small flag that is lowered once they are happy with the price. Once all the flags are lowered, the Chairman can declare the price 'fixed'. Read on to find out about the auctions of gold that were announced by the government in 1999. |
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