Monthly Archives: July 2014

End Of The Silver Price Fix – What Next?

End of The Silver Price Fix

For the individuals who aren’t acquainted with SilverNews, the London Silver Fixing Company sets the silver price once a day by day at 12pm, and this is utilized as a universal benchmark for evaluating a mixed bag of silver items. The silver fix is as of now run, as it has been throughout the previous 117 years, by three banks that meet every day through meeting to think about their demands for silver. The altering cost speaks to the matching of requests from clients all through the world. The fixings make it workable for any invested individual, be they supplier, private investors, merchant or financial specialist, to exchange at a price at which each present premium is fulfilled.

The settling price is instantly transmitted by the universal SilverNews offices and is a regarded reference value utilized by industrialists and makers around the world. However, what numerous individuals don’t comprehend is that it truly isn’t these three banks that focus the value of silver. They simply coincide on the cost of spot silver at a certain time of day. Just minutes after or even before the fix, the cost of silver may exchange at a totally diverse cost. The genuine cost of silver is resolved consistently by purchasers and merchants. It is a day by day, as well as practically consistently or second. It is the movements of customers and dealers all over.

End Of Silver Price Fix

Could This Spell The End Of Silver Price Fix Manipulation?

The real value of silver, as with all else, is the place purchasers and dealers meet in the center. You could say the cost is focused around the last transaction that was made, and that the cost is continually evolving. Thus, in actuality, the silver fix fills no need in value finding, and the extent that I am concerned, is antiquated and an exercise in futility. So it could be considered as End Of Silver Price Fix Manipulation.

An alternate point to consider is that today, with 24-hour electronic exchanging, the cost is extremely transparent, and there is no compelling reason to hold up for a fix before one need to enter into a transaction. Throughout the most recent decade or thereabouts the fates market, Comex, has had more impact on value finding than any possible trade. Also, as method sells just a little rate of exchanges for physical conveyance, it has turned into a focal point for individual examiners, mutual funds and obviously bullion banks who have utilized this business sector to smother costs.

In the interim, gold costs started the week on a marginally weaker note, yet are as of now holding admirably over the essential help level of $1,300 an ounce. It is the affect on Gold & Silver Price Fix. Last Wednesday, the European Central Bank (ECB) kept premium rates on hold, notwithstanding indications of low expansion that undermines the locale’s frail recuperation.  Approach creators are hesitant to roll out any improvements as they are holding up for boost measures declared a month ago to produce results and work their path through the economy later not long from now.

Silver Price Fix – Who Is Next? 

Is the silver price fix coming to an end, or maybe not?  What will basically happen the old Silver Price Fix will be made obsolete followed by a newer system.  Out go the old guard to be replaced with an online auction based system ran by CME Group & Thompson Reuters.

On August 15th 2014 – The system will go live with CME Group providing the trading platform whilst Thompson Reuters will take care of the governance and administration.  Several other organisations submitted proposals to run the new system including Bloomberg and the London Metal Exchange.

The London Bullion Market Association (LBMA) included strict criteria in its request for a more transparent system. As well as being electronic and auction-based, the system has to be tradeable, auditable and allow for more direct participation.

If this system is seen as a success, especially after the Libor and Gold Price Fix scandal then a similar move may well be made to move gold trading to a similar platform with strong support from the World Gold Council.