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.
Prices are fixed for each precious metal at different times of the day:
However, buying and selling doesn’t stop after 10 am – it keeps going on around the world. The price can fluctuate away from the London fix depending on local market factors, supply & demand, and other economic considerations. For example, the price of gold in New Delhi, India may be different from the price in New York, USA, but both are based on the initial price fixing from London. This type of price – what you could sell your gold for “right here and now” or “on the spot” – is known as the spot price. Use our chart showing spot prices for New York to estimate the local value of your precious metals.
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) was later established in 1987.
There are 15 association members who are responsible for the gold market fixing:
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 12 members of the LBMA that conduct the silver market fixing once daily:
The gold and silver fixes are administrated by ICE Benchmark Administration (IBA) 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:
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. We’re also happy to answer refining questions, discuss hedging options, and take customer service inquiries.