The History Of Silver Fixing

Greg Williams · Dec 7, 2013

HISTORY OF SILVER FIXING

The London Silver Market has developed over the Last three hundred years. The first recorded deal was entered into by a Market Member in 1676 when Mocatta started trading with the East India Company.

The price at that time was 63 pennies per troy ounce of standard Silver. Towards the end of the 18th century the next Member entered the arena. Originally known as Sharps and Pickup, they shortly became Sharps and Wilkins.

During most of the 18th century, and for the first part of the 19th century, much of the business transacted in the Silver Market took place in one of the original London coffee shops. Although the firms concerned had individual offices, much of the gathering of information took place in coffee shops, making them a natural venue in which to transact business.

1852 saw the entry of Pixley and Haggard, who, five years later; became Pixley and Abell. This was followed one year later in 1853 by the founding of Samuel Montagu & Co. The price of Silver in 1853 was 61 pennies per ounce of standard Silver.

The daily Silver Fixing commenced in 1897, although it is believed that a system of agreeing a daily spot price had evolved by the use of runners between the four houses a few years earlier. The first Fixing was attended by all four Members - Mocatta & Goldsmid, Sharps and Wilkins, Pixley and Abell, and Samuel Montagu & Co. Within a very short time two prices were 'fixed' daily - cash (up to seven days) and two months forward. The cash price of Silver in 1897 was 27 9/16 pennies,

The Silver Fixing has continued until the present day. Starting in 1967 the format of the Silver Fixing was amended, whereby the price was fixed for spot, three, six and twelve months forward, and at the same time the US Dollar equivalent was officially published. In 1999 The Fixing further evolved into a telephone based process with spot prices for US Dollar, Sterling and Euros. The Silver Fixing continues unchanged to this date, and has proved to be the most acceptable pricing mechanism for producers, consumers, arbitragers and speculators.
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London Gold Fix Calls Draws Scrutiny Amid Heavy Trading >>> http://forums.silverstackers.com/to...-calls-draws-scrutiny-amid-heavy-trading.html

Source:^^^ http://www.indiabullion.com/historyofsilverfixing.php

The London Gold and Silver Fixings
What is the guiding principle behind the London Gold and Silver Fixings?
The Fixings are an open process at which market participants can transact business on the basis of a single quoted price. Orders can be changed throughout the proceedings as the price is moved higher and lower until such time as buyers' and sellers' orders are satisfied and the price is said to be 'fixed'. Orders executed at the fixings are conducted as principal-to-principal transactions between the client and the dealer through whom the order is placed.
How are the fixings used in the market?
The fixings are the internationally published benchmarks for precious metals. They are fully transparent and are therefore used to deal in large amounts, or to achieve the accepted average price of the metal. As a benchmark, many other financial instruments are priced off the fixing, including cash-settled swaps and options. The silver fixing started in 1897 and the gold fixing in 1919.
Which banks are the members of the London Gold Fixing?
The Gold Fixing is conducted twice a day by telephone, at approximately 10:30 am and 3:00 pm. There are five Gold Fixing members - all of whom are Market Making members of the LBMA. They are the Bank of Nova ScotiaScotiaMocatta, Barclays Bank Plc, Deutsche Bank AG, HSBC Bank USA, NA and Socit Gnrale. The chairmanship of the Gold Fixing rotates annually amongst its members.
Which banks are the members of the London Silver Fixing?
Three Market Making members of the LBMA conduct the Silver Fixing meeting under the chairmanship of The Bank of Nova ScotiaScotiaMocatta by telephone at 12.00 noon each working day. The other two members of the Silver Fixing are Deutsche Bank AG and HSBC Bank USA, NA.
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Source:^^^ http://www.lbma.org.uk/pages/index.cfm?page_id=52

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The History Of Silver Fixing

Greg Williams Well-Known Member Silver Stacker

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The History Of Silver Fixing

Greg Williams Well-Known Member Silver Stacker

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