At one time London had the pre-eminent gold buUion market. It was closed in 1939 and when it reopened in 1954 a major part of gold dealings had passed to New York and Zurich. Zurich has become even more important since the U.S.S.R. and South Africa, the world's primary gold producers, recently decided to route all sales through the Zurich market. Nevertheless, London stiU maintains an active gold bullion market, respected both for its standards and the highly competitive prices which its near perfect market provides. Dealings are in dollars and each day two fixed meetings of dealers are held at which official prices are set. As such a great deal of business is now conducted by telephone and telex outside the fixed meetings, prices wiU tend to fluctuate considerably during one day's trading.
|Reference: The Penguin Business Dictionary, 3rd edt.|