The London Metal Exchange Offers Three Alternatives to London Silver Fix

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The London Metal Exchange (LME), competing to offer a replacement for the London silver benchmark, said on Monday it could offer three alternatives including an enhanced telephone-based process and an option for open-outcry price setting.

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The 117-year-old London silver price benchmark – or fix – will cease on Aug. 14, its operator – London Silver Market Fixing Limited – said last month, as regulatory scrutiny of price-setting intensifies across markets.

“We are very interested in playing a greater role in the silver and gold markets,” LME Chief Executive Garry Jones told Reuters in a Monday report.

The LME, owned by Hong Kong Exchanges and Clearing Ltd , had already proposed an alternative to the current telephone-based method, with better auditing and compliance. The LME would be prepared to offer any one of its three solutions by Aug. 15, depending on what the market prefers.

At INR 43,198 ($716.68) per kilogram, Indian silver moved up 4.6 percent on Tuesday, June 17, the day’s biggest change. At JPY 639.00 ($6.27), the price of Japanese silver finished the market day up 1.4 percent per 10 grams. Chinese silver saw its price rise 0.4 percent to CNY 4,125 ($662.36) per kilogram. Following a two-day rise, the price of US silver flattened at $19.67.

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The price of Indian gold bullion increased 2.2 percent to INR 26,932 ($446.82) per 10 grams. Japanese gold bullion gained 1.4 percent to finish at JPY 4,199 ($41.22) per gram. Weakening prices followed two days of improvement as the price of US gold bullion dropped 0.3 percent to $1,272 per ounce. At CNY 254.00 ($40.79) per gram, the price of Chinese gold bullion was essentially unchanged.

Japanese platinum bar finished the day down 2.3 percent to JPY 4,736 ($46.49) per gram. The price of Chinese platinum bar fell 1.3 percent to CNY 305.00 ($48.97) per gram. US platinum bar finished the day down 0.3 percent to $1,430 per ounce.

Japanese palladium bar prices saw a 1.8 percent decline to JPY 2,710 ($26.60) per gram. Chinese palladium bar ended the day at CNY 183.00 ($29.38) per gram, after the 1.6 percent drop on Tuesday. At $809.00 per ounce, US palladium bar fell 0.1 percent yesterday.

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