LME gold and silver Reference Prices: Will anyone notice?

As the London Metal Exchange (LME) rolls out the publication of daily reference prices for gold and silver in London, the question must be asked, are they needed? The incumbent and dominant reference prices in the London precious metals market are the LBMA Gold Price and LBMA Silver Price. These LBMA prices are used to value everything from ETFs to OTC contracts, and, for better or worse, are the de facto standard across the world’s bullion markets.

Both the LBMA and LME reference prices represent trading in unallocated precious metals positions, so the LME prices offer nothing new in terms of physical gold price discovery.

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