Gold-Fix: The Legal Framework Behind Gold Pricing

Definition & Meaning

The term "Gold-Fix" refers to the process of determining the price of gold, which occurs twice each business day in the London market. This process is managed by five members of The London Gold Market Fixing Ltd., who are responsible for setting the official gold price. The first gold fixing took place on September 12, 1919, and involved key gold traders of the time. The price set during this initial fixing was GBP 4.18s.9d, which is equivalent to approximately 4.9375 in modern currency.

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Real-world examples

Here are a couple of examples of abatement:

Example 1: An investment firm uses the Gold-Fix price to evaluate the value of gold assets in its portfolio, ensuring accurate reporting and compliance with financial regulations.

Example 2: A jewelry manufacturer references the Gold-Fix to set pricing for gold products, aligning with market standards (hypothetical example).

Comparison with related terms

Term Definition Key Differences
Gold-Fix Process of determining the daily price of gold in the London market. Specifically tied to the London market and involves a fixed group of traders.
Spot Price The current market price at which gold can be bought or sold for immediate delivery. Varies continuously based on market conditions, unlike the fixed price set by Gold-Fix.

What to do if this term applies to you

If you are involved in trading or investing in gold, understanding the Gold-Fix is essential for accurate financial reporting and compliance. Consider using US Legal Forms' templates to assist with any related legal documentation. If your situation is complex, seeking advice from a legal professional may be beneficial.

Quick facts

  • Price determination occurs twice daily.
  • Involves five members of The London Gold Market Fixing Ltd.
  • First established in 1919.
  • Important for commodities trading and investment valuations.

Key takeaways

Frequently asked questions

The Gold-Fix is the process by which the price of gold is set twice a day in the London market by a group of designated traders.