LONDON, 19 October 2015 – Comment from BullionVault head of research Adrian Ash features today in a report from leading international news-wire Thomson Reuters on how the professional wholesale gold market is changing.
Now meeting in Vienna for their annual conference, members of the London Bullion Market Association are discussing further reforms, led by regulatory pressures, after replacing the century-old daily Gold Fix benchmark with an electronic process this spring.
But "there are too many vested interests," Reuters quotes one senior bullion bank delegate, "and China is likely to win the main prize."
Moreover, "some players don't wish to play anymore," the news-wire quotes Adrian, pointing to the recent exit of Germany's Deutsche Bank and news that Japan's Mitsui trading house is now also quitting wholesale precious metals.
"This trend is not good news," Adrian says, because "markets need market makers – willing to quote firm prices to buy and to sell – and the more the better."
Read his full comment in Reuters' report here:
