The London gold fix —a price-discovery process determined during twice-daily conference calls between Barclays PLC, Deutsche Bank AG, HSBC Holdings PLC, Bank of Nova Scotia and Société Générale SA — is currently under review by international regulators as part of a wider probe into market benchmarks.
by Francesca Freeman, WSJ:
Investigations into the London gold fix could scare institutional investors away from the metal, according the head of one of the world’s largest investors in gold and precious metals mining shares.
“We as money managers in the space have been hurt more not by the price action, but by the feeling among investors that [London pricing] is just too weird, too inexplicable,” said John Hathaway, who oversees $2 billion in gold investments for Tocqueville Asset Management.
About 10% of the Tocqueville Gold Fund’s portfolio is made up of physical gold, with the remainder in mining companies shares and other assets tied to gold.
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