1 thought on “The price determination mechanism of the gold market”
Ignacio
As a commodity, gold is first determined by supply and demand factors. At the same time, gold as a product with special functions not only has complicated prices confirmed factors, but also has a big difference in pricing mechanism and ordinary goods. . The gold pricing mechanism in the London gold market The gold market in London has a long history. As early as the beginning of the 19th century, London was the center of world gold refining, sales and exchange. In 1919, the London Gold Market began to implement a daily pricing system, twice a day. The price is the most important gold price in the world. It has been affected to the transactions of the gold market in New York and Hong Kong. Gold prices are standard, and then fluctuate up and down according to their respective supply and demand. At the same time, the price of gold in London is also the benchmark price involving gold transactions and treaties. The golden pricing in London was in the office of the Loser headquarters in London, UK. From September 12, 1919, the representative of the five major gold banks in London started the "Gold House" for the first time, and began to formulate the daily gold price of the London gold market. This system continued to today. The five gold banks formulate twice a day, respectively at 10:30 am and 3 pm. As a pricing host, the market transaction stopped for a while before the pricing. At this time, the gold merchants first suspended the quotation. The chief representative of the company was set up a proper opening price based on the New York market price after the London market closed the day after the closing of the London market the night before. The remaining four company representatives sat around the "Golden House" and opened the price to report to the trading room of their respective companies. The trading rooms of each company immediately traded at this price. Give its customers and present the price to the computer system terminals in their respective trading rooms through Reuters. When receiving the ordering business, each representative will add all the transactions together to see if it is bought or sold, or the buying and selling will be offset. Then the data information will be told to the chief representative of Loher to the chief representative adjust the price. If the opening price is too high, there is no buyer on the market, and the chief representative will reduce the price of gold; if the opening price is too low, the gold price will be raised until the seller appears. Price transactions set new prices in such a supply and demand relationship. At the same time, in the "Golden House", each company represents a British flag on the table, and it was vertical at the beginning. In the process of gold pricing, as long as there is a company's flag erected on the table, it means that there is still a new gold transaction order in the market, and the chief representative of Luohill cannot end the pricing. Only when the five -sided flags in the "Golden House" are put down together, it means that there is no new buyer and seller in the market, and the order of ordering business will be announced by the representative of Lohill. the deal price. The length of the pricing depends on the supply and demand of the market. The shorter is 1 minute and the length can reach about 1 hour. After that, the new price will soon be passed on to traders around the world. The gold price of London is important, and it is inseparable from the core position of the London Gold Market in the world's gold transactions. London monopolized all the golden sales of the world's largest nation-South Africa, making most of the gold supply in the world's gold market trading through the London gold market. Moreover, the five major gold merchants in the London gold market are also internationally reputated internationally, and have a wide range of contacts with many gold ores and gold merchants in the world. This scope not only involves the London gold market, but also expands to the entire world. In addition, during the pricing process, the gold merchant provides customers with a single transaction price. There is no trading price difference, and the price is reasonable. Essence Therefore, in the "Gold House", the five gold merchants represent the gold traders of almost the world, including the supplier of the gold, the demanders and speculators of the gold, and decided to produce the most reasonable price for buyers and sellers in the market And the entire pricing process is completely public. As a result, customers who traded at pricing can certainly know that the transaction price is reasonable. Because of the above characteristics of London's gold price, the price of the gold market in London has become the most important gold price in the world. At present, the four major pricing gold banks in the London Gold Market are: Lisal International Investment Bank (N M
As a commodity, gold is first determined by supply and demand factors. At the same time, gold as a product with special functions not only has complicated prices confirmed factors, but also has a big difference in pricing mechanism and ordinary goods.
. The gold pricing mechanism in the London gold market
The gold market in London has a long history. As early as the beginning of the 19th century, London was the center of world gold refining, sales and exchange. In 1919, the London Gold Market began to implement a daily pricing system, twice a day. The price is the most important gold price in the world. It has been affected to the transactions of the gold market in New York and Hong Kong. Gold prices are standard, and then fluctuate up and down according to their respective supply and demand. At the same time, the price of gold in London is also the benchmark price involving gold transactions and treaties.
The golden pricing in London was in the office of the Loser headquarters in London, UK. From September 12, 1919, the representative of the five major gold banks in London started the "Gold House" for the first time, and began to formulate the daily gold price of the London gold market. This system continued to today. The five gold banks formulate twice a day, respectively at 10:30 am and 3 pm. As a pricing host, the market transaction stopped for a while before the pricing. At this time, the gold merchants first suspended the quotation. The chief representative of the company was set up a proper opening price based on the New York market price after the London market closed the day after the closing of the London market the night before. The remaining four company representatives sat around the "Golden House" and opened the price to report to the trading room of their respective companies. The trading rooms of each company immediately traded at this price. Give its customers and present the price to the computer system terminals in their respective trading rooms through Reuters. When receiving the ordering business, each representative will add all the transactions together to see if it is bought or sold, or the buying and selling will be offset. Then the data information will be told to the chief representative of Loher to the chief representative adjust the price. If the opening price is too high, there is no buyer on the market, and the chief representative will reduce the price of gold; if the opening price is too low, the gold price will be raised until the seller appears. Price transactions set new prices in such a supply and demand relationship. At the same time, in the "Golden House", each company represents a British flag on the table, and it was vertical at the beginning. In the process of gold pricing, as long as there is a company's flag erected on the table, it means that there is still a new gold transaction order in the market, and the chief representative of Luohill cannot end the pricing. Only when the five -sided flags in the "Golden House" are put down together, it means that there is no new buyer and seller in the market, and the order of ordering business will be announced by the representative of Lohill. the deal price. The length of the pricing depends on the supply and demand of the market. The shorter is 1 minute and the length can reach about 1 hour. After that, the new price will soon be passed on to traders around the world.
The gold price of London is important, and it is inseparable from the core position of the London Gold Market in the world's gold transactions. London monopolized all the golden sales of the world's largest nation-South Africa, making most of the gold supply in the world's gold market trading through the London gold market. Moreover, the five major gold merchants in the London gold market are also internationally reputated internationally, and have a wide range of contacts with many gold ores and gold merchants in the world. This scope not only involves the London gold market, but also expands to the entire world. In addition, during the pricing process, the gold merchant provides customers with a single transaction price. There is no trading price difference, and the price is reasonable. Essence Therefore, in the "Gold House", the five gold merchants represent the gold traders of almost the world, including the supplier of the gold, the demanders and speculators of the gold, and decided to produce the most reasonable price for buyers and sellers in the market And the entire pricing process is completely public. As a result, customers who traded at pricing can certainly know that the transaction price is reasonable. Because of the above characteristics of London's gold price, the price of the gold market in London has become the most important gold price in the world.
At present, the four major pricing gold banks in the London Gold Market are: Lisal International Investment Bank (N M