With the silver fix’s days already numbered is the writing on the wall for the gold benchmark?
The World Gold Council is set to hold a meeting next month to overhaul or even replace the current London “fix” – the controversial twice-daily setting of gold’s global price benchmark.
The price-setting ritual dates back to 1919 and takes place twice daily by phone between Societe Generale SA, Bank of Nova Scotia, HSBC Holdings Plc and Barclays Plc.
This meeting will be held on July 7th in London, with central banks, refiners, bullion banks and mining companies invited to share in what will be a series of discussions on the future of the London fix.
On the back of increasing scrutiny of the process and amid widespread claims of market manipulation, the UK’s Financial Conduct Authority will also be attending – although more as an observer than a key member of the discussion.
The daily silver fix is already due to be disbanded in August and on it’s announcement many suspected gold would soon go the same way. Despite obvious comparisons the London Bullion Market Association (LBMA) says these discussions are not part of the ongoing process to find a replacement for the silver fix.
Members of the LBMA, including Deutsche Bank, Scotiabank, HSBC and other large bullion-trading banks will discuss silver fix proposals at a seminar set for June 20.
Regardig the gold fix meeting on July 7th, Barclays Plc and HSBC have declined to comment on whether they will be participating and neither the Bank of Nova Scotia and Societe Generale were available to comment.
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