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Hong Kong: Gold market fears repercussions of gold fix changes

 |  April 28, 2014

Hong Kong’s gold market fears proposed competition policy changes to the way the daily gold benchmark is decided could squeeze out smaller companies from the industry.

According to reports, the proposals would outlaw the current process by which only two companies set the daily price of gold for the entire market. Some industry members are reportedly concerned that if the process ends, while the price of raw material would remain consistent, retail prices of gold would not – an inconsistency that they say will confuse consumers.

Reports say the two trade associations that set the benchmark price are now seeking a meeting with the Competition Commission to obtain an exemption from the draft policy.

Full content: South China Morning Post

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