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Business returns from gold price fixing and bullion trading on the interwar London market

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  • Anthony John Arnold

Abstract

From September 1919, the world price of gold was 'fixed' daily in London by a small group of licensed traders. The arrangement was not ideal, as it advantaged the traders concerned, but it was seen by the Bank of England at the time as critical to British economy recovery and to the maintenance of London's position as a world trading centre. This article examines the available archival evidence on whether direct knowledge of the workings of the mechanism enabled Mocatta and Goldsmid, traders central to the operations of the 'gold fix', to earn unusually high profits across the interwar period.

Suggested Citation

  • Anthony John Arnold, 2016. "Business returns from gold price fixing and bullion trading on the interwar London market," Business History, Taylor & Francis Journals, vol. 58(2), pages 283-308, March.
    • Handle: RePEc:taf:bushst:v:58:y:2016:i:2:p:283-308
    DOI: 10.1080/00076791.2015.1083012
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    References listed on IDEAS

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    1. Burk, Kathleen, 1989. "Morgan Grenfell 1838-1988: The Biography of a Merchant Bank," OUP Catalogue, Oxford University Press, number 9780198283065.
    2. Stefano Ugolini, 2013. "The Bank of England as the World Gold Market Maker during the Classical Gold Standard Era, 1889–1910," Palgrave Macmillan Books, in: Sandra Bott (ed.), The Global Gold Market and the International Monetary System from the late 19th Century to the Present, chapter 3, pages 64-87, Palgrave Macmillan.
    3. Feinstein, Charles H. & Temin, Peter & Toniolo, Gianni, 1997. "The European Economy Between the Wars," OUP Catalogue, Oxford University Press, number 9780198774815.
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    1. O'Connor, Fergal A. & Lucey, Brian M., 2023. "The efficiency of the London Gold Fixing: From Gold Standard to hoarded commodity (1919-68)," eabh Papers 23-01, The European Association for Banking and Financial History (EABH).

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