London Fix

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

How the fixing works

The modern procedure is fully electronic and 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 sets a starting price.
2. Participants anonymously submit buy and sell volumes.
3. The price is adjusted until supply and demand match within a defined tolerance band.
4. Once equilibrium is reached, the price is published as the official fixing price.

The procedure is thus more transparent than the old telephone fixing, which was reformed in 2014 (silver) and 2015 (gold) - among other reasons following allegations of manipulation that led to billions in 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 by the second on the global OTC (over-the-counter) markets, whereas the London Fix is a single, once-daily snapshot. Important differences:

• Spot price: continuous interbank price, tradeable around the clock (except at weekends).
• London Fix: a fixed-point price used for contracts, arbitration clauses and accounting.
• Timing difference: the PM Fix reflects the European afternoon market, by which time US dealers are already active - it is therefore regarded as particularly liquid and market-representative.

Practical significance

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

With the gold calculator you can value your own quantities based on the current price; for historical fix comparisons daily data has been available for decades.

History of reforms

1919  First telephone gold fixing (5 banks, N M 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

In brief

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 day-to-day trading.