Commodity Trade Mantra

Posts Tagged ‘London Gold Fix’

China's Increasing Presence in Gold Market - An Obsession to Prop up Yuan

No doubt that Chinese officials see gold as an important asset for the future. Is China’s quest to put the yuan on the world stage closely related to this involvement in gold? Will China actually come up with some kind of a gold-backed currency? Actually, China’s fixation on gold is a story of diversification that can lessen the devastation of central planning gone wrong.

Central Banks and Our Dysfunctional Gold Markets

The love-hate relationship between governments and gold is complicated. It is because gold is a competitive national currency that, if allowed to function in a free market, will determine the value of other currencies, the level of interest rates and the value of government bonds. Hence, central banks fight gold to defend their currencies and their bonds.

China Plans To Launch Renminbi Gold Fix By End of 2015

If the renminbi / yuan gold fix takes off, China could compel local buyers & foreign suppliers to pay the domestic renminbi price, making the London gold fix less relevant in the world’s biggest bullion market. China feels it is entitled to be a price-setter for bullion at a time when the global benchmark, the London fix, is under scrutiny for alleged price-manipulation.

Thoughts On The Price Of Gold

Derivatives can be used by bullion banks and central banks to influence the price of gold. If the paper price goes down & physical demand increases this has to be met by equal physical supply, that is, if the price for physical gold follows the paper price. If the physical price disconnects from the paper price, premiums will appear at one location.

The New London Gold Fix and China

China’s motives for taking control of the gold bullion market have almost certainly evolved. What is truly amazing is the western economic & political establishment have dismissed the importance of gold. They do not seem to realize the power they have given China and Russia to create financial chaos by simply hiking the gold price.

Paper Gold and Its Effect on the Gold Price

Huge orders for paper gold can move the price by $20 in a second. These orders often exceed the CME stated limit of 6,000 contracts. Big banks can drive down gold prices by delivering relatively small amounts of gold. These banks are the market. $360 billion of paper gold is traded per month, but only $279 million of physical gold is delivered.

Silver Manipulation To End; $150 Per Ounce Possible

Deutsche Bank, HSBC & Bank of Nova Scotia have been accused in a lawsuit of rigging the price of billions of dollars in silver to the detriment of investors globally. The banks unlawfully manipulated silver & its derivatives, abused their position of controlling the daily silver fix to reap illegitimate profit from trading, according to the suit.

Will Ending the London Gold fix be the Start of a Price Surge?

Will this sort of reform be enough to start a price surge for the precious metals? If the London price fix encourages market regulators to go further and question the role of the central banks in fixing gold prices then this really could open a can of worms, and that would send prices much higher.

Banks Sued on Claims of Fixing Price of Gold

The lack of prohibition against trading during the calls allows defendants to gain an unfair trading advantage because pricing information exchanged during the calls provides them with insight into the immediate future direction of gold and gold derivative prices.

The Gold Price Being Manipulated. So What?

Talk of gold price manipulation has become a notoriously heated topic amongst precious metals investors over the past several years. Deutsche Bank abandoning its seat on the London gold fix has added fuel to the fire. Here’s a detailed view of the leading conspiracy theories & how they impact my long-term investment outlook.

Gold Forward Offered Rate (GOFO) Turned Negative AGAIN: The Consequences

Historically, GOFO rates (Gold Forward Offered Rate) have only been negative twice since 1999, but have frequently moved into negative territory over the past year. We believe this is a result of on going large shift of gold from the west to the east. GOFO is back negative again, 7th time since July 8, 2013.

Gold Market is not “Fixed” - it’s Rigged

Its an indication that when free market forces have been frustrated by market manipulation for a very long time the equilibrium price can be many multiples of the suppressed price & the rise is typically rapid when the suppression is overcome. The onset of an epic “gold rush” is fast approaching.

Suing JPMorgan and the COMEX For Precious Metals Manipulation

Presenting a guide for how & why JPMorgan & the COMEX (owned by the CME Group) should be sued for their manipulation of gold and silver (& copper, too). I am certain that the coming physical silver shortage will end price manipulation, but I see nothing wrong with trying to hasten that day.

The Gold Price Manipulation, London Gold Fix and the Quantum

If I were to criticize the Gold Fix I would certainly concede that its rather stupidly named. The Gold Fix is a real trading price & not a survey, like LIBOR & it is not a chart of quotes, like the Bloomberg spot gold ticker. Its a price at which a large number of buyers & sellers chose to deal & this makes it real.

How Gold Price Is Manipulated During The "London Fix"

We are delighted that none other than Bloomberg has decided to break it down for everyone, as well as summarize all the ways in which just this one facet of gold trading is being manipulated – Anyways, nothing wrong with a little gold manipulation here and there.

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