A couple of weeks ago, there was a big news about the gold dinar issued by the Kelantan government. They wants to make gold in dinar as one of their daily currency… to be closer and more like middle eastern… or Arab country I supposed 😛 As the whole world knows, we already have our ringgit as our currency… and it has been accepted worldwide since it was issued long time ago.

If the government of Kelantan go ahead with the plan, it will make the business go up-side-down… because gold prices fluctuate every minutes around the world. For example, the price of a piece of 10gm gold dinar will go up or down in every minute based on worldwide gold price index. If that happens, every shops have to have the most current gold price index to refer before closing their transaction or before charging their customers!

Anyways, do you know that spot gold price or price of gold is set or ‘fixed’ in London by 5 banks? Yes, the gold spot is fixed by only 5 banks and they are NM Rothchild & Sons, Sharps Wilkins, Pixley & Abell, Samuel Montagu & Co., Mocatta & Goldsmid. And this gold price ‘fixing’ has been going on since September 12th 1919 which was started by gold bullion traders and refiners at that time.