Investing in precious metals 101

London Silver Price Fix to End Aug 14th

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  • Sat, May 17, 2014 - 06:10pm

    #11

    KugsCheese

    Status Gold Member (Offline)

    Joined: Jan 01 2010

    Posts: 844

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    If you control the exchange….

If you control the exchange, you don't need the "Silver Fix" process.  Ask the former head of the German options market who also was the CFO of Porsche at the same time and played VW stock to enrich Porsche. 

Also, ending this reduces the chance of prosecution for crimes related to it. 

  • Sat, May 17, 2014 - 06:11pm

    #12

    KugsCheese

    Status Gold Member (Offline)

    Joined: Jan 01 2010

    Posts: 844

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    If you control the exchange….

If you control the exchange, you don't need the "Silver Fix" process.  Ask the former head of the German options market who also was the CFO of Porsche at the same time and played VW stock to enrich Porsche. 

Also, ending this reduces the chance of prosecution for crimes related to it. 

  • Sat, May 17, 2014 - 06:23pm

    #13

    LogansRun

    Status Silver Member (Offline)

    Joined: Mar 18 2009

    Posts: 304

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    Doc, it’s so nice to see you’ve come around!

[quote=cmartenson]

While the silver 'fix' has essentially been in place since Moses Mocatta (now part of Scotia Mocatta, the fixiest of the fixers) set up his shop in London in 1671, I don't ascribe much to its demise here in 2014.

Instead I think that 'they' have discovered newer and better ways of controlling prices and these have been in place long enough that the banks and shops long involved in fixing the prices of PM's have all more or less decided to walk away from the physical job in London.

Don't forget, it was almost exactly ten years ago to the day that the Rothschilds decided to exit the London gold fix.

Rothschild to pull out of gold market after 200 years

Apr 15, 2004

The investment bank that has chaired the London meetings setting the world gold price since 1919 is quitting the market.

NM Rothschild will withdraw from all its commodity trading activities, which also include an oil trading business set up less than two years ago, as part of a strategic review.

The move brings to an end nearly 200 years of tradition. NM Rothschild was founded in London in 1810 by Nathan Mayer Rothschild, who helped finance the Duke of Wellington's army in the Napoleonic wars through gold trading.

The company hosts and chairs twice-daily meetings which effectively set the world's gold price. The meetings are held in a plush chamber in the bank's offices at St Swithin's Lane in the City. The other four firms involved are Deutsche Bank, HSBC, Canada's Scotia Bank and Societe Generale.

During the fixes, telephone lines are kept open to trading rooms where dealers are in touch with customers. Potential price movements are unlimited and the fix has been known to take up to two hours, although it is usually over in a matter of minutes.

My guess at the time was that they saw it as the dying end of the business.  The mistake would be to assume that the Rothchilds had gotten out of gold and fixing the price of gold.

I don't believe either is true, then or now.  Gold has too long of a storied role in the wealth ad health of nations for such an illustrious banking dynasty to simply walk away.

If they actually did simply walk away, then it's true that your offspring cannot always be counted on to carry on the family traditions, including being smart.

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