We are refiners mining company depending on where the gold is mined, it will typically be flown by plane to a bank vault in another country: the U.S., the U.K., Dubai, India, China, Australia, anywhere gold may be needed.
The price of gold is determined by supply and demand. There isn't one gold market; there are many. The most important include: So, for example, a customer could tell one of the fixing members, "I'd like to buy 10 bars at this price, but I won't buy 10 bars at this price; or I'd like to sell 10 bars or 20 bars at this price." So at every point of the fixing process, until the chairman declares the price is fixed, all of the customers down that pyramid have an opportunity to do a transaction.It provides a tradable benchmark price. Where gold is part of a portfolio, you need to have a way to value those assets. The fixing is a price at which buyers and sellers are matched at a particular time of day, and because it's open, transparent and tradable it represents a very credible benchmark price.
There are lots of different gold prices around the world, so why doesn't gold trade at wildly different prices? Because arbitrageurs (often on gold trading desks) step in to buy gold in one place, and sell it in another.
The gold futures market, the largest of which is in the United States;