Have you ever wondered how the price of gold or silver is determined? It doesn’t just appear on a screen out of thin air—it’s the result of a process overseen by one of the most influential organizations in the world of precious metals: the London Bullion Market Association (LBMA).
If you’re buying, selling, or recycling gold and silver, understanding the LBMA and the London Fixing can help you make smarter, more profitable decisions.
What is the LBMA?
The London Bullion Market Association, or LBMA, was officially established in 1987 at the request of the Bank of England to bring oversight and structure to the global bullion trade.
But its roots go much deeper. For centuries, London has been a major hub for the gold and silver trade, with its bullion market dating back to the late 1600s. The LBMA now serves as the global authority for the wholesale over-the-counter (OTC) bullion market, setting the rules for how gold and silver are traded, stored, and delivered.
One of its key responsibilities is maintaining the Good Delivery List, a set of strict quality and weight standards for gold and silver bars. If you’re buying a bar that meets LBMA Good Delivery standards, you can trust it meets the highest levels of purity and authenticity recognized worldwide.
A Brief History of the London Bullion Market
London’s rise as the center of global bullion trading was driven by its position as a financial powerhouse. Over the centuries, London became the go-to location for international gold and silver transactions.
By the 20th century, the need for greater transparency and standardization led to the creation of the LBMA. Today, it remains the world’s most trusted authority on precious metals, representing refiners, traders, banks, and other key players in the industry.
The London Fixing: How Precious Metal Prices Are Set
So what exactly is the London Fixing?
First introduced in 1919, the London Gold Fixing was a twice-daily meeting of five bullion banks to establish a benchmark price for gold. This “Fix” became the global reference point for gold transactions, ensuring that buyers and sellers around the world had a fair and reliable standard.
Over time, the process evolved into what we now know as the LBMA Gold Price and LBMA Silver Price, which continue to serve as the most trusted benchmarks for precious metals pricing. These prices are set daily and are used by jewelers, refiners, investors, and manufacturers worldwide.
Why the LBMA Matters to You and Your Business
If you’re in the jewelry, manufacturing, or precious metals trade, the LBMA affects you more than you might think.
- Fair Pricing: The LBMA pricing benchmarks ensure that gold and silver transactions are conducted transparently.
- Quality Assurance: Gold and silver bars that meet LBMA’s Good Delivery standards are recognized globally for their purity and reliability.
- Market Confidence: By setting and maintaining these standards, the LBMA helps protect the integrity of the entire bullion market.
In short, the LBMA makes sure that when you’re trading gold or silver, you can do so with confidence.
Access Real-Time Precious Metal Prices Through Our Portal
While the LBMA sets the standards and pricing benchmarks, staying competitive means staying informed. That’s where our business portal comes in.
Our family-owned refinery gives businesses real-time access to current gold and silver prices, straight from the source. Whether you’re selling scrap metal, buying bullion, or trading, our portal helps you track live market movements and make well-timed decisions.
The LBMA and the London Fixing play a critical role in shaping the global precious metals market. By understanding how these benchmarks work, you can better navigate gold and silver trading—and maximize the value of your precious metals.
Our family-owned refinery provides jewelers, manufacturers, and businesses with real-time access to live gold and silver pricing and instant quotes for scrap metal.
Sign up for your free business account today and get connected to the information you need to make smarter, more profitable decisions.
