London PM Fix: The Global Benchmark for Gold & Silver Prices

The London PM Fix (now formally LBMA Gold/Silver Price) is the twice-daily benchmark auction setting the global reference price for physical gold and silver.

How It Works (Current Electronic Auction)

• Operator: ICE Benchmark Administration (IBA), overseen by LBMA.
• Participants: 16 authorized direct participants (major bullion banks: JPM, HSBC, UBS, Standard Chartered, Scotia, etc.).
• Schedule: 10:30 AM & 3:00 PM London time (GMT/BST).
• Process: Blind, electronic, price-discovery auction. Participants enter buy/sell orders (own + client). Algorithm adjusts price until buy/sell volume balances within tolerance. Result = LBMA Gold Price (USD, GBP, EUR) / LBMA Silver Price.
• Publication: Real-time on Reuters, Bloomberg, LBMA website; used for contracts, ETFs, mining royalties, central bank reserves.

Historical Context

• 1919–2004: Physical meeting at N.M. Rothschild (Gold Fix).
• 2004–2015: Telephone conference (5 banks).
• 2015–present: Electronic auction (IBA) after manipulation scandals; expanded participation, transparency, audit trail.

Why It Matters

• Global benchmark: Gold futures (COMEX), ETFs (GLD), central bank valuations, jewelry pricing, mining hedges all reference LBMA Price.
• Transparency: Audited, regulated (FCA), IOSCO-compliant.
• Liquidity: Deepest physical market; London holds ~8,000+ tonnes gold in vaults.

Silver Fix

Same process, 12:00 PM London time. Participants: 14 banks. Critical for industrial contracts, solar, electronics, coins.

The London PM Fix remains the trusted daily anchor for precious metals pricing worldwide—evolved from smoke-filled room to algorithmic auction, but still the gold standard.