London Fix

The London Fix — officially known today as the LBMA Gold Price and LBMA Silver Price — is the most closely watched reference price in the physical precious metals market. It originated in 1919 when five London gold dealers met for the first time to establish a uniform daily price for gold. Today it serves as the settlement basis for mining contracts, jewellery procurement, central bank reserves and structured financial products around the globe. The current gold price and historical price developments can be looked up here at any time.

How the fixing works

The modern process is fully electronic and is carried out by ICE Benchmark Administration (IBA) on behalf of the LBMA. Accredited banks and dealers participate in the gold fixing. Price discovery runs in iterative auction rounds:

1. IBA provides a starting price.
2. Participants anonymously submit buy and sell volumes.
3. The price is adjusted until supply and demand are within a defined tolerance corridor.
4. Once equilibrium is reached, the price is published as the official fixing price.

The process is therefore more transparent than the old telephone fixing, which was reformed in 2014 (silver) and 2015 (gold) — partly following manipulation allegations that led to billion-dollar fines against several major banks.

Overview: fixing times and metals

Platinum and palladium are fixed via the LPPM (London Platinum and Palladium Market) but follow the same auction principle.

Difference between fixing and spot price

The spot price fluctuates second by second on the global OTC (over-the-counter) markets, whereas the London Fix is a once-daily snapshot. Key differences:

• Spot price: Continuous interbank price, tradeable around the clock (except weekends).
• London Fix: A point-in-time price used for contracts, arbitration clauses and accounting.
• Timing difference: The PM Fix reflects the European afternoon market, at which time US dealers are also already active — it is therefore considered particularly liquid and representative of the market.

Practical significance

• Mine producers frequently sell their gold output at the PM Fix.
• Jewellery and industrial companies calculate raw material costs on a fixing basis.
• Central banks use fixing rates to value their gold reserves.
• ETFs and ETCs such as Xetra-Gold or physically backed funds calculate net asset value (NAV) on the basis of the PM Fix.
• Arbitration clauses in long-term supply contracts explicitly reference the LBMA Gold Price PM.

With the Gold Calculator you can value your own holdings based on the current price; for historical fixing comparisons daily data going back decades is available.

Reform history

1919  First telephone gold fixing (5 banks, NM Rothschild)
1968  Introduction of the two-tier system (official/market-based)
2014  Silver Fix discontinued → LBMA Silver Price (CME/Refinitiv)
2015  Gold Fix → electronic IBA auction (LBMA Gold Price)
2014  Platinum/Palladium → electronic LPPM fixing

Key takeaway

The London Fix is not a price negotiated between individual dealers but the result of a regulated, anonymous auction with global reach. It remains the most important reference point for physical precious metal transactions worldwide — even though the second-by-second spot price dominates in day-to-day trading.