The silver market was thrown into disarray on Thursday after the LBMA Silver Price was set 84 cents below the spot and futures price this morning.
The LBMA Silver Price — the crucial daily benchmark used by producers and traders around the world to settle silver products and derivatives contracts — was set at $13.58 per ounce.
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Another source also suggested that the continued existence of the fix has been put in jeopardy by the huge discrepancy in today’s price, adding that many producers — who still use the price as their daily reference — may have lost significant amounts of money if any contracts have been settled according to the fix.
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CME and Thomson Reuters won the battle to provide the methodology and price platform for the daily process back in July 2014, replacing the 117-year old fix in August that year under sweeping reforms of the entire precious metals complex.
See also Bron Suchecki – LBMA Silver “Price”: A Perfect Storm of Stupidity.