London Precious Metals Price Fix

Author: Corey McDowell - Economics Editor

Published: 26 Aug 2020

Last Updated: 8 Dec 2020


With the prices of precious metals ever fluctuating, placing precious metal orders on the LBMA fix gives more certainty to transactions and allows businesses and individuals to prepare their trades on an agreed benchmark.

Unfortunately we cannot offer to fix on the LBMA price for now, but we hope this could change in the future.

LBMA Precious Metals Fixing Times

Why Settle on the LBMA Price Fix?

Fixing precious metal prices is standard industry practice between bullion banks, wholesalers and businesses.

The benefits of using the fix price as a reference is it adds certainty to transactions and simplifies exchange processes, as neither party is required to haggle over the ever-changing spot price.

If such a system did not exist, the time spent haggling over a constantly changing spot price and the uncertainty over placing orders and exchanging funds to cover them, would inevitably lead to higher prices and premiums.

Generally, this means lower premiums can be applied to precious metals. In other words, this future certainty allows the industry to pass on lower precious metal prices to you.

Fixing on the Live Spot Price

Historically, we have accepted any order on a live price regardless of whether we have stock on site to cover it or it requires ordering in. At times this exposes us to the risk of higher prices when compared to the price customers actually paid, particularly as the time between taking customer orders and being able to place wholesale orders can be up to 19 hours and 30 minutes (3:00pm – 10:30am).

Businesses who take on such risk of fluctuating prices are inclined to build higher premiums into their products to offset deals that go against them. We do not do this, but we do require a deposit to be paid promptly for orders over a certain amount (currently £30,000). You can find out more about how we deal with high-value orders by contacting us on 01253 343081 .

You can read more on how the LBMA price fixing operates by reading our dedicated article.

Transaction Amounts

Any order placed with us which is over £30,000 will require a deposit to be paid in order to secure the bullion. This will be done on the live spot price at the time of ordering.

Once the deposit is paid, customers will then be contacted with a final balance to settle.

More Details on the LBMA Price Fix

We have a comprehensive article which goes into detail on how the LBMA price fixes work.

The LBMA Precious Metals Price Fix page can be found here.

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