EXCLUSIVE – Refiners may throw hat in the London Gold Fix ring – source

Jan 22, 2014 - 4:45 PM GMT
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Bidders for Deutsche Bank’s seat on the London Gold Fix may not be limited to fellow banks but may also include other parties with an interest in the gold market such as refiners, a source told The Bullion Desk.

“We haven’t heard anything concrete but we think there would be other parties apart from banks interested in Deutsche Bank’s seat,” a source told FastMarkets.

“It would certainly be very beneficial for the market if there was a refiner in the mix as well. Historically, participation was not limited to the banks. People like Sharps Pixley also used to participate,” he added.

But any interested party will have to seriously consider questions surrounding the fix and would have to weigh the price carefully against shareholder value, the source said.

Other parties who may have an interest but who have not officially commented include Chinese banks and members of the LBMA not currently involved in the fix, such as Credit Suisse, Goldman Sachs, JP Morgan, Merrill Lynch, Mitsui and UBS.

Deutsche Bank said last week that it will end its participation in the London gold and silver fixings and will withdraw from the group that sets the LBMA GOFO rate.

“Deutsche Bank is withdrawing its participation in the gold and silver benchmark setting process following the significant scaling back of our commodities business,” it said.

(Editing by Mark Shaw)