For years the London Bullion Market Association (LBMA) sold physical silver and paper contracts in either dollar, euros, or pounds. But in a new denominational change that almost reeks of desperation, the LBMA on Sept. 25 will begin settling silver contracts in over a dozen new currencies.
On September 25th, 2017, London silver will be priced in RUBLES, ONSHORE AND OFFSHORE YUAN, Rupees, and other currencies as sweeping changes are beginning now. Here’s the details so far…
There are two parts to take into consideration on these sweeping changes.
First, there was a request for feedback on their proposed changes to the LBMA. Secondly, NOBODY made ANY feedback, and so the proposal will launch as stated on September 25th, 2017.
The LBMA Silver Price is currently published in USD, EUR and GBP. The USD prices are published to 3 decimal places and the EUR and GBP prices are published to 4 decimal places. The price discovery in IBA’s Gold auction is in USD. At the end of the auction, the price for Gold in USD is converted into other currencies. These non-USD prices are published as indicative settlement prices at the end of the auction, or as benchmarks for reference in derivative contracts. The additional currencies in the LBMA Gold Price are Australian Dollars, British Pounds, Canadian Dollars, Euros, Onshore and Offshore Yuan, Indian Rupees, Japanese Yen, Malaysian Ringgit, Russian Rubles, Singapore Dollars, South African Rand, Swiss Francs, New Taiwan Dollars, Thai Baht and Turkish Lira. The LBMA Gold Price is available both in prices per ounce and in prices per gram. IBA intends to publish the LBMA Silver Price in the same currencies and in prices per ounce and prices per gram. – Silver Doctors
Over the past six months the LBMA has experienced an incredible amount of turmoil, especially with their contracted auction authorities leaving with more than two years remaining on their contract. And in part this has led more and more business to flow Eastward to Shanghai where a much more transparent and regulated gold and silver market has flourished under Chinese control.
To suddenly shift towards the acceptance of a multitude of non-Western currencies speaks volumes on the rising growth and power of Eastern economies, and at a time when the dollar, euro, and British pound are losing ground in global settlement. And what is most likely to occur is not that more investors will come to the LBMA to purchase metals contracts because of this new regulation, but that nations like China, Russia, and India will increase their buys of physical silver from Western market coffers, and will now do so without having to pay the middleman to participate in this market.
Source: The Daily Economist