by Stewart Thompson, Gold Seek:
1. All gold community eyes should be on the month of March, for three key reasons.
2. First, London is the world’s largest gold trading centre. The LBMA sets the price with a “fix” that is created by bank traders, using telephones.
3. There are two problems with the traditional London price fixing mechanism. First, there is a lack of transparency. Second, the bank bids and asks don’t necessarily reflect mine and scrap supply, or investment and jewellery demand.
4. In March, a new electronic LBMA price-discovery process is set to be unveiled, and it should bring great transparency to the market.
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