Message:

<p>[QUOTE=&quot;desertgem, post: 1309994, member: 15199&quot;]The LBM price setting of precious metals is intended to be used for transactions by members within the LBM. If you represent Barclays and&nbsp; buying bullion gold from HSBC , both members of the the 5 member fixing board, the bid/ask price will be fairly tight. So others outside of the LBM started using the fixing price as a general estimate of gold pricing. As I remember, it is only done twice a day, so actual market prices may drift away from the last fixing price, especially away from Europe. </p><p><br /></p><p>So yes, the London fix price is set by the 5 members, but it is determined by market forces. If gold drops badly in asia, the syndicate can&#039;t bring it up by fixing the price high in the morning, or the members of the bullion exchange would be buying at a higher than market price and losing money, and the world market bid.ask price would determine the actual price of gold. In the old days before internet, not everyone had daily price estimates themselves, so they &quot;borrowed&quot; the LBM prices.</p><p><br /></p><p>It is profitable because of the &quot;vigor&quot; &quot;juice&quot; &quot; exchange costs&quot;&nbsp; difference between the bid/ask. </p><p><br /></p><p>No they aren&#039;t manipulating the world gold prices, they are working within them. IMO.</p><p><br /></p><p>Jim[/QUOTE]</p><p><br /></p>

Your name or email address:

Do you already have an account?

• No, create an account now.
• Yes, my password is:
• Forgot your password?

Stay logged in