London Fixings
The London fixings are internationally published benchmarks for precious metals prices. The London fixings are fully transparent and are therefore used to deal in large amounts, or to achieve the accepted average price of the metal. The London fixings are designed to allow precious metals traders to trade at a fair market price.
Records trace bullion transactions in London back to the 17th Century. It was, however, the introduction of the London Silver Fixing in 1897 and the London Gold Fixings in 1919 that marked the beginnings of the market’s structure.
Trade Associations
The London Bullion Market Association (LBMA) is the trade association that represents the wholesale gold and silver bullion market in London. The London Platinum and Palladium Market (LPPM) were later established in 1987.
There are five Gold Fixing members:
• Bank of Nova Scotia–ScotiaMocatta
• Barclays Bank Plc
• Deutsche Bank AG
• HSBC Bank USA, NA
• Société Générale
Members participate in a conference call daily to contribute average sales prices. They come to an agreement on the price, which is fixed for transactions that happen throughout the business day.
Three Market Making members of the LBMA conduct the Silver Fixing:
• Bank of Nova Scotia–ScotiaMocatta
• Deutsche Bank AG
• HSBC Bank USA, NA
Good Delivery List
The LBMA also puts out a “Good Delivery List” which catalogs acceptable refiners of gold and silver bars in the London bullion market. The LBMA Good Delivery List is widely recognized as representing the indisputable standard for the quality of gold and silver bars.
The main requirements for a refiner to be considered for a Good Delivery listing are as follows:
• Have an established track record of at least three years of producing the refined metal for which the listing is being sought
• Produce a minimum quantity of refined metal per year
• 10 tons of gold
• 30 tons of silver
• Have a tangible net worth of at least £10 million equivalent
• Furnish evidence of their ownership structure and directors
In addition to the above items, the refiner’s bars must have passed the stringent testing procedures laid down by the LBMA.
MGS Refining has developed a Google Gadget with AM & PM London Fixings so you can keep current with gold and precious metals prices. Instructions are provided below so that you can add it to your website or to your iGoogle Page.
Add MGS's London Fixings Gadget to Your Website
For more information on London Fixings and precious metal prices, please contact us.