History
On 12 September 1919 at 11:00am the five principal gold bullion traders and refiners of the day performed the first gold fixing. The original members were N M Rothschild & Sons, Mocatta & Goldsmid, Pixley & Abell, Samuel Montagu & Co. and Sharps Wilkins. The gold price was determined to be four pounds 18 shillings and ninepence (GBP 4.18s.9d = 4.9375) per fine ounce (troy ounce). The New York gold price was US$19.39. The first few fixings were conducted by telephone until the members started meeting at the Rothschild offices in New Court, St Swithin's Lane.
Due to wartime emergencies and government controls, the London gold fixing was suspended between 1939 and 1954, when the London gold market was closed.
Gold prices are fixed in United States dollars (USD), Pound sterling (GBP) and European euros (EUR).
On 21 January 1980 the gold fixing reached the price of $850, a figure not overtaken until 3 January 2008 when a new record of $865.35 per troy ounce was set in the a.m. fixing. However, when indexed for inflation, the 1980 high corresponds to a price of $2,305.18 in 2011 dollars, thus the 1980 record still holds in real terms.
The fixing historically took place at the London offices of N M Rothschild & Sons in St Swithin's Lane, but since 5 May 2004 it takes place by a dedicated telephone conferencing system. Until 1968, the price was fixed only once a day, when a second fixing was introduced at 3 p.m. to coincide with the opening of the US markets, as the price of gold was no longer under control of the Bank of England, a result of the collapse of the London Gold Pool. In April 2004 N M Rothschild & Sons announced that it planned to withdraw from gold trading and from the London gold fixing. Barclays Capital took its place on 7 June 2004 and the chairmanship of the meeting, formerly held permanently by Rothschilds, now rotates annually.
Read more about this topic: Gold Fixing
Famous quotes containing the word history:
“A country grows in history not only because of the heroism of its troops on the field of battle, it grows also when it turns to justice and to right for the conservation of its interests.”
—Aristide Briand (1862–1932)
“America is the only nation in history which, miraculously, has gone directly from barbarism to degeneration without the usual interval of civilization.”
—Attributed to Georges Clemenceau (1841–1929)
“The history of all Magazines shows plainly that those which have attained celebrity were indebted for it to articles similar in natureto Berenice—although, I grant you, far superior in style and execution. I say similar in nature. You ask me in what does this nature consist? In the ludicrous heightened into the grotesque: the fearful coloured into the horrible: the witty exaggerated into the burlesque: the singular wrought out into the strange and mystical.”
—Edgar Allan Poe (1809–1849)