The origins of the modern gold market lie in the Italian city states of Florence,
Genoa and, above all, Venice. By the 12th century Venice had become the world's
leading bullion market, with gold from West
Africa and the Sudan and silver from the German states and Hungary.
Precious metal accounted for 20% of the city's turnover and flowed to the east
to finance her trade. The Venetian gold ducat
circulated widely.
Strict regulations applied to the weighing and assaying
of gold and silver, with sales registered through official brokers. The approval
of two out of three recognised assayers was required. Initially gold was refined
to 988 fine, which was the title demanded by the Mint for coins, but by the 15th
century Venetian refiners aimed at 990 fine.
The Venetian authorities even initiated a twice daily price fixing
in mid-morning and at vespers, signalled by the ringing of a bell to call together
local traders and visiting merchants. Precious metal on offer was then sold by
auction. Venice remained the major market throughout the 15th century, but was
then supplanted, briefly, by Amsterdam and London by the late 17th century.