IKBFU's Vestnik

2019 Issue №4

Back to the list Download an article

The dynamics of the world market of gold and the current geo­political processes. Part 2. The analysis of behaviour patterns of the main gold market participants

Pages
26-39

Abstract

The article analyses the behaviour of the participants of the world gold market. Special attention is paid to the London gold fixing and its replacement by the London electronic auction in an attempt to establish the benchmark price of gold under the influence of short-term geopolitical impulses. The au­thor puts forward a hypothesis that different impulses of geopolitical process­es, their frequency and the level of manifestation influence differently the dy­namics of the world gold market. These factors determine the movement and distribution of gold reserves in different geographical places, ‘safe havens’, and can lead to an increase the number of gold bars, futures contracts or, on the contrary, to get rid of them. They can determine the fluctuations of the world price of gold. The author substantiates the idea that short-term geopolit­ical disturbances have an impact on the process of revaluation of the precious metal. The second part of the article aims to identify the main regularities of the impact of geopolitical impulses on the behaviour of participants of gold pricing. This aim is achieved by using observation, analogy, comparative and retrospective analysis. The author analyses the behavioural reaction of partic­ipants of the London gold fixing and the London electronic auction to the emergence of new centres of military conflicts and "colour revolutions, as well as the intentions of some world leaders to break the existing military and stra­tegic balance of forces in an attempt to introduce a new world order. The au­thor determines the conditions, which allow participants of the world gold market to become subjects of modern geopolitics.

Reference

1. Буневич К. Г., Миняева М. В. О некоторых противоречиях глобального рын­ка золота: теоретический аспект // Вестник Московский университет им. С. Ю. Вит­те. Сер. 1: Экономика и управление. 2017. № 4 (23). С. 11—17.

2. Товарная биржа COMEX — время работы, активы и торговля // Equity. Портал о финансовых рынках. URL: https://equity.today/birzha-comex.html (да­та обращения: 01.04.2019).

3. ICE Benchmark Administration (IBA). LBMA Gold Price. Methodology. Auc­tion process. URL: https://web.archive.org/web/20170309065447/https:/www. theice.com/iba/lbma-gold-price (дата обращения: 01.04.2019).

4. LME Gold // London Metal Exchange. URL: https://www.lme.com/en-GB/ Metals/Precious-metals/LME-Gold#tabIndex=5 (дата обращения: 01.04.2019).

5. Martin Hauptfleisch, Tālis J. Putniņš and Brian Lucey. Who sets the price of gold? London or New York (May 15, 2015) // Auckland Centre For Financial Re­search. URL: https://acfr.aut.ac.nz/_data/assets/pdf_file/0009/29790/t-putnis-goldils-v4.3.pdf (дата обращения: 27.03.2019).

6. Torgny Persson. What sets the Gold Price — Is it the Paper Market or Physical Mar­ket? // BullionStar Pte Ltd. URL: https://www.bullionstar.com/blogs/bullionstar/ what-sets-the-gold-price-is-it-the-paper-market-or-physical-market/ (дата обраще­ния: 27.03.2019).

7. What’s the difference between the London and New-York gold and silver pri­ces? // GoldSilver. Org. URL: http://www.goldsilver.org/gold_silver_prices/whats- the-difference-between-the-london-and-new-york-gold-and-silver-prices.php (дата обращения: 27.03.2019).

8. Xan Rice. Gold: In search of a new standard: The London fix has been in place for almost a century but critics say the system needs reform // Financial Times. April 14, 2014. URL: https://www.ft.com/content/e31b0f44-b0e5-11e3-bbd4-00144f eab7de #axzz2z9w4p5CN (дата обращения: 01.04.2019).