RIP Silver Price Fix by Mike Maloney


	Yesterday, it was announced that The London Silver Market Fixing Limited will end their Silver Fix on August 14, 2014. What is the Silver Fix? The Silver Price Fix is a daily price benchmark for the silver spot market price. The silver fix is set during a conference call at noon London time between HSBC, the Bank of Nova Scotia, and formally Deutsche Bank (who recently quit the silver fix, likely do to pressure from German Bank regulator Bafin). Today, two commercial banks currently set the silver price fix. During the daily silver price fix phone call, the two banks exchange bids and offers for silver on behalf of themselves and their clients. They then declare the price ‘fixed’ when they determine supply and demand is equal at a certain price. Here is a 400 year history of the London Silver Trade & Fix according to the official Silver Fixing website. We reported on alleged Gold & Silver Fix Price Rigging back in February 2014. Lawsuits are now piling up and changes are dead ahead for the precious metals markets. Who uses the Silver Fix? The silver fix is used to set spot prices worldwide. It affects for example the price that miners charge for silver, or the price of industrial silver used in electronics, jewelry, etc. The fix is also used to price paper derivatives tied to silver, such as exchange-traded funds (ETFs). What does this mean for Silver Buyers & Sellers? Unless a new system is created, buyers and sellers will either need to price their deals on the moving silver spot price, or use another daily benchmark such as the silver futures closing price on the U.S. Comex exchange. Will the Gold Price Fixes (both AM & PM) be ending next? The end of the silver fix brings into question the future of the other precious metal benchmark fixes – especially gold. Following Deutsche Bank’s withdrawal in late April, the gold fix continues to be operated by four member banks regardless of its process being old-fashioned and opaque. The London Gold Fix's days are most likely numbered. The statistical evidence of price collusion is all too obvious. Below is a 5 year running chart on the intraday gold price. Note how the gold spot price cascades downward ahead of both the London AM & PM Gold Fixes. source: ShareLynx.com What happens now? The two banks (HSBC and the Bank of Nova Scotia) will continue to publish the silver fix up to and including August 14th 2014. What happens beyond that date is speculative at the moment. The silver market is headed for unknown territory. On a longterm basis, we believe today's silver and gold bullion prices are an extreme value. This is why we continue to buy and hold for the long haul. We encourage you to do the same while silver and gold prices hover near 3-year price lows. UPDATE: On May 9, 2014 Germany learned the following about the current Gold Fix scheme. Click the CC button in the Youtube video player for English subtiltles. The information, opinions, and financial data presented are for educational purposes only and are not intended as investment advice. No guarantees are made as to the accuracy of the information provided herein. Situations can change from day to day. Every investor should do their own due-diligence to determine which investments are best for them. You must assume the responsibility and liability for all decisions that you make on the basis of the information herein contained. GoldSilver.com, makes no warranties, expressed or implied, as to the fitness and accuracy of the information provided or for the results obtained by using the information. Those making investment decisions based on any of the information presented should do so in the knowledge that they could experience significant losses. In no event shall GoldSilver.com be liable for direct, indirect, or incidental damages resulting from the use of the information. Yesterday, it was announced that The London Silver Market Fixing Limited will end their Silver Fix on August 14, 2014. What is the Silver Fix? The Silver Price Fix is a daily price benchmark for the silver spot market price. The silver fix is set during a conference call at noon London time between HSBC, the Bank of Nova Scotia, and formally Deutsche Bank (who recently quit the silver fix, likely do to pressure from German Bank regulator Bafin). Today, two commercial banks currently set the silver price fix. During the daily silver price fix phone call, the two banks exchange bids and offers for silver on behalf of themselves and their clients. They then declare the price ‘fixed’ when they determine supply and demand is equal at a certain price. Here is a 400 year history of the London Silver Trade & Fix according to the official Silver Fixing website. We reported on alleged Gold & Silver Fix Price Rigging back in February 2014. Lawsuits are now piling up and changes are dead ahead for the precious metals markets. Who uses the Silver Fix? The silver fix is used to set spot prices worldwide. It affects for example the price that miners charge for silver, or the price of industrial silver used in electronics, jewelry, etc. The fix is also used to price paper derivatives tied to silver, such as exchange-traded funds (ETFs). What does this mean for Silver Buyers & Sellers? Unless a new system is created, buyers and sellers will either need to price their deals on the moving silver spot price, or use another daily benchmark such as the silver futures closing price on the U.S. Comex exchange. Will the Gold Price Fixes (both AM & PM) be ending next? The end of the silver fix brings into question the future of the other precious metal benchmark fixes – especially gold. Following Deutsche Bank’s withdrawal in late April, the gold fix continues to be operated by four member banks regardless of its process being old-fashioned and opaque. The London Gold Fix's days are most likely numbered. The statistical evidence of price collusion is all too obvious. Below is a 5 year running chart on the intraday gold price. Note how the gold spot price cascades downward ahead of both the London AM & PM Gold Fixes. source: ShareLynx.com What happens now? The two banks (HSBC and the Bank of Nova Scotia) will continue to publish the silver fix up to and including August 14th 2014. What happens beyond that date is speculative at the moment. The silver market is headed for unknown territory. On a longterm basis, we believe today's silver and gold bullion prices are an extreme value. This is why we continue to buy and hold for the long haul. We encourage you to do the same while silver and gold prices hover near 3-year price lows. UPDATE: On May 9, 2014 Germany learned the following about the current Gold Fix scheme. Click the CC button in the Youtube video player for English subtiltles.

	RSS feed		24hGold Mobile
	Gold Data Center		Gold & Silver Converter
	Gold coins on eBay		Silver coins on eBay
	Technical Analysis		Fundamental Analysis

In the same category
Gold: A Surge Into Summer? Stewart Thomson Gold Stocks: Poised To Outperform Everything Stewart Thomson Dovish CPI: A Super Surge For Gold? Stewart Thomson The Anti-Concepts of Money: Conclusion Keith Weiner Gold Stocks: Good Times Are Here Stewart Thomson Gold Price Reaction: Key Zones To Buy Stewart Thomson