The London Gold Fix

The London fixing for precious metal prices

The London market fixings are internationally published benchmarks for precious metals prices. The trade associations who set the London fixings are regarded as fully transparent, worldwide authorities on precious metal valuations. Therefore, London fixings are used to deal in large amounts, or to achieve the accepted average price of precious metals. Essentially, the London fixings are designed to allow precious metals buyers and sellers 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.

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 association members who are responsible for the gold market fixing:

  • Bank of Nova Scotia–ScotiaMocatta
  • Barclays Bank Plc
  • Deutsche Bank AG
  • HSBC Bank USA, NA
  • Société Générale

Members participate in a conference call twice 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.

There are three members of the LBMA that conduct the silver market fixing once daily:

  • Bank of Nova Scotia–ScotiaMocatta
  • Mitsui Group
  • HSBC Bank USA, NA

The silver fix is administrated by Thompson Reuters using an auction-based, auditable electronic system that matches buying and selling orders to reach a benchmark for the price of silver.

The LBMA also puts out a “Good Delivery List” that 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.

Manhattan Gold & Silver offers free precious metal apps for smart devices that let you check the London fixing for gold, silver, platinum, and palladium anytime you want – along with several other features.

Remember, the current price of precious metals changes every day. Contact us today to get a payout quote for your lot – based on the London fixing. We’re also happy to answer refining questions, hedging options, and customer service inquiries.

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