Fixing gold and silver in London: how does it work?

Every day, the price of precious metals changes! The price depends on supply and demand.

Supply comes from gold production worldwide, as well as from Central Bank reserves and stocks.

The geopolitical situation is also a factor. Particularly in times of crisis such as 2020. Gold being the safe-haven par excellence!

Gold & Silver Fixing: before 2015!

In those days, the gold market was defined by the London Gold Fix. This was a group of gold buying and selling professionals who set the price of an ounce of gold by conference call, based on supply and demand on world markets.

These exchanges, which were kept secret at the time, aroused the ire of investors and producers alike due to their opacity. In the 2000s, the GATA (Gold Anti-Trust Action Committee) repeatedly denounced the bias of the companies setting the price!

Fixing gold and silver: the London Bullion Market Association!

Today, the Gold Market is based on the "SPOT" defined twice a day in London.

This rate serves as a reference for international traders. The process is both physical and electronic, settled in Dollars and communicated to the public in real time.

The LBMA is responsible for this process on a day-to-day basis. This organization brings together banks such as Goldman Sachs, HSBC, Société Généraleand others.

Traders, mining industry representatives and refiners are also present.

Gold Fixing: London!

London accounts for 90% of the world's gold trading, and its price is considered the international benchmark!

In France, the majority of traders use this London price as a benchmark.

Silver Fixing!

As with gold, until 2014, silver metal was determined by an organization made up of major banking institutions, during a daily conference call. At the time, there were suspicions of price manipulation, which led to greater transparency!

Nowadays, the fixing is established by the LBMA, under the name of London Silver Price, every day at midday.

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Author: Rédaction GOLDMARKET
GOLDMARKET's editorial team is made up of precious metals experts, journalists and editors with a passion for gold and the wider economy. We also bring in specialist lawyers and experts on technical subjects relating to gold.

Based on the Avenue des Champs-Elysées, the family-owned GOLDMARKET Group, a major player in precious metals, is present throughout France and and internationally. For years, thousands of loyal customers have trusted us to sell their gold objects online or in our branches, or to invest in gold in complete security.

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