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Price fixing

Nemo
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Price fixing

#174934

Postby Nemo » October 19th, 2018, 10:50 am

I've been researching this for a while - still going on apparently

(Reuters) - Deutsche Bank AG (DBKGn.DE) agreed to settle U.S. lawsuits accusing it of conspiring with other banks to manipulate gold and silver prices at investors’ expense, court papers show...

...The plaintiffs accused Deutsche Bank of conspiring with Bank of Nova Scotia (BNS.TO), Barclays Plc (BARC.L), HSBC Holdings Plc (HSBA.L) and Societe Generale (SOGN.PA) to manipulate prices of gold, gold futures and options, and gold derivatives through twice-a-day meetings to set the so-called London Gold Fixing.


https://uk.reuters.com/article/uk-deuts ... KKCN0XB2B8

Governments and central banks want to keep people's faith in fiat currencies

1nvest
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Re: Price fixing

#318498

Postby 1nvest » June 15th, 2020, 9:53 am

Most private investors/others trade gold at the free floating spot (market determined) price, not the 10 a.m. 3 p.m. daily price fixes that the Banks trade between each other at. Banks cumulatively hold around 15% of all gold. If I'm buying or selling gold I'll look at the current spot price, not the most recent 10am/3pm price fix price. To me the only use for the price fix data is as a guide to historic price levels as a alternative to historic end of business day spot prices.

Whilst some Banks might strive to illegally adjust prices briefly in their favour around the am/pm fix times, they'd be taking on massive risk to try and bias the entire market all of the time. As such I see such news items as being reflective of how one bank was trying to win out over other banks.


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