The Art of Islamic Banking and Finance: Tools and Techniques for Community-Based Banking

as yet no afternoon fixing). The objective was to fix the price around the
$35/ounce price (as per the Bretton Woods agreement) within a 1-percent
band. In its current form, the London gold price fixing takes place twice
each business day, at 10:30A.M. and 3:00P.M., in the Fixing Room. Five
individuals representing each of the following banks sit at the fixing table:

&Scotia-Mocatta—successor to Mocatta & Goldsmid and part of Bank

of Nova Scotia

&Barclays Capital—Replaced N. M. Rothschild & Sons when they

abdicated

&Deutsche Bank—Owner of Sharps Pixley, itself the merger of Sharps

Wilkins with Pixley & Abell

&HSBC—Owner of Samuel Montagu & Co.

&SocieteGenerale

Price fixing is based on balancing supply and demand. Usually, the fix-
ing takes less than 15 minutes. In 1979, when the Islamic Revolution of Iran
erupted, the afternoon fixing lasted an hour and 39 minutes, due to price
volatility.

EXHIBIT 5.21 Price of gold in terms of rice.

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