The London Gold Fix

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:

• Bank of China
• Bank of Communications
• Citibank N.A. London Branch
• Coins ‘N’Things
• Goldman Sachs
• HSBC Bank USA NA
• Industrial and Commercial Bank of China (ICBC)
• StoneX Financial Ltd
• Jane Street Global Trading LLC
• JP Morgan Chase Bank N.A. London Branch
• Koch Supply and Trading LP
• Marex Financial Limited
• Morgan Stanley
• Standard Chartered Bank
• The Toronto Dominion Bank

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:

• Citibank N.A. London Branch
• Coin ‘N Things Inc
• Goldmans Sachs International plc
• HSBC Bank USA NA
• StoneX Financial Ltd
• Jane Street Global Trading LLC
• JP Morgan Chase Bank N.A London Branch
• Koch Supply and Trading LP
• Marex Financial Limited
• Morgan Stanley
• Standard Chartered Bank
• The Toronto Dominion Bank

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:

• 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. We’re also happy to answer refining questions, discuss hedging options, and take customer service inquiries.