# An end to London silver fixing



## 4metals (Jul 9, 2014)

A 117 year tradition of silver price fixing in London will come to an end next month on August 14th.

http://www.reuters.com/article/2014/07/09/silver-fix-idUSL6N0PK45U20140709

Any thoughts on what this will do to pricing?


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## Westerngs (Jul 10, 2014)

My guess? Not much will change. Pricing has always been controlled by few. Even with the new system, it will continue.

Back in 1980 when the Hunt brothers tried to corner the silver market and silver sent above the $50 mark, the banks simply changed the pricing rules when they found out they stood to lose a lot of money. They would simply do so again if something like that appeared to be happening again.

They can do so because they control the silver leases. Lose your silver lease, and you are out of business, simple as that.


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## solar_plasma (Jul 10, 2014)

I think the price of industrial silver will get more volatile and harder to calculate, which will result in both buyer's and seller's need of higher safety margins, which again will influence the spot price in the other markets indirectly. It will get a little more, though not dramatically, expensive to the private buyers. The professional buyers and sellers will transfer the costs to the private end-consumers, who always are at the end of the chain. So, silver coins, solar panels, electronics will get slightly more expensive. All kinds of paper silver will get more volatile.


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## butcher (Jul 10, 2014)

I think I could predict the weather better;
it is going to be a hot one here tomorrow.


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## nickvc (Jul 10, 2014)

I suspect it will be a smoke and mirrors job nothing will really change except it will all cost everyone more money for the same thing making the banks richer and distancing themselves from any blame or risk.


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## maynman1751 (Jul 10, 2014)

nickvc said:


> I suspect it will be a smoke and mirrors job nothing will really change except it will all cost everyone more money for the same thing making the banks richer and distancing themselves from any blame or risk.


Bing bing, bing!!!!! We have a winner!


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## 4metals (Jul 10, 2014)

I suspect it will cause greater daily swings in the pricing and essentially squeeze the smaller refiners who can't work at the smaller margins out of the game. 

But in the end the consumer will take the brunt of it.


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## nickvc (Jul 10, 2014)

maynman1751 said:


> nickvc said:
> 
> 
> > I suspect it will be a smoke and mirrors job nothing will really change except it will all cost everyone more money for the same thing making the banks richer and distancing themselves from any blame or risk.
> ...



Sorry cynicism comes with being a Brit :roll:


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## Barrie Gold Buyer (Jul 13, 2014)

Thomson Reuters, CME to Provide Electronic Replacement for Silver Fix

http://online.wsj.com/articles/london-silver-fix-to-end-in-august-1405080131


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