Syndicate
Gold Markets
During a long time now, gold has gotten the attention of individuals that have a trading vision in mind. These visionaries are the ones that have the guts to buy and sell with the thought of making a profit out of it. Now with the beginning of satellite transmissions, computers, e-mail, we have the chance of being able to buy and sell right on the Internet and this is one of the things that has internationalized the market of gold. People nowadays can do business in their beds if they want.
The London Market
In the case of gold traders in the United States, London is where it all begins. Early in the morning probably during the first coffee, the five member of the London gold market concur on the morning gold fix. They evaluate supply and demand and establish the price they think is going to go along with the buys and sells that are going in from bullion dealers, traders, central banks, mining companies, internationally based commercial banks, commercial brokers etc. When the buys go beyond the sells, the price is then increased, whereas if the buys are not sufficient enough, the prices are brought down.
In the past few years London has been one of the most essential centers for the gold trade, and is now going towards the place at the top of the gold trading table. The central banks and bullion banks in the world have set up their spots for gold deposit, lending etc. London is the place where the London Bullion Market Association trades in high amounts in physical and paper transactions. The London market also provides forwards sales and spot sales. Forward sales represent gold that is sold in the future on a price that has been agreed on and Spot sales represent gold that is sold at the price that London posts.
The individuals that decide on the London fixes stand for the most prominent bank and gold dealers in the world which are N.M. Rothschild, Societe General, the Hong Kong Shanghai Bank, Scotia Mocatta, and the Deutsche Bank. There are two fixes that are set every day and the first one is at 10:30 London time, most commonly known as the A.M. Fix and this is announced on the radio in the United States radio networks in the morning. Then there is what is known as the P.M. Fix, which is set after lunch.