The Guyana Gold Board (GGB) has said that the London Gold Fix, the pricing mechanism being used to set gold prices, has outlasted its usefulness.
In a column published in last Thursday’s Stabroek News, the GGB argued that the London Fix is “loss inducing, and tailor made to foster dependency,” and “in today’s dynamic technologically-driven trading arenas is slow and out-of-step.”
The GGB said the twice-daily pricing of the London Fix is a state subsidy that depletes the Treasury and locks the GGB into a defensive, and increasingly vulnerable position. “This longstanding pricing standard of using the static London Fix is self-defeating. In the fast moving modern commodity marketplaces characterized by the fluency and volatility of spot prices, use of the London Fix, to put it charitably, has outlasted its time, objectives, and utility,” it added.
