Reuters reported that Deutsche Bank AG (NYSE:DB) is in the early stages of talks to sell its place in the gold and silver price-setting process. Deutsche Bank has held the position since 2004, but recently decided to “withdraw from the bulk of its commodities business.”
Market watchers are wondering whether an Asian bank will end up being the buyer
As quoted in the market:
‘The key issue … is whether or not the new fixer needs to be a market maker. They will be looking for a company with stature and credibility and not necessarily just the best price – someone who will add status to the fix,’ one industry source said.
If the buyer does not have to be a current market maker, it increases the likelihood that a candidate could emerge from Asian banks looking to raise their profile in the London market. Asia is taking a more important role in the gold industry as supplies of physical metal move eastward.