by Chris Powell, GATA:
Dear Friend of GATA and Gold:
The March edition of the London Bullion Market Association’s magazine, The Alchemist — presumably named for the ability of LBMA members to turn gold into paper — carries a long defense of the daily London gold price fixings against complaints that they are likely manipulated by their participating bullion banks.
The defense, written by Peter Fertig, director of QCR Quantitative Commodity Research Ltd., maintains that there are plausible explanations for the aspects of the fixings that have been called suspicious by Professor Rosa Abrantes-Metz of New York University’s Stern School of Business. Plausible explanations or not, Fertig declines to explain the necessity of the peculiarly closed and elite mechanism of the London fixes, a mechanism not used and indeed not allowed in any other commodity or currency market.
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