{"id":17056,"date":"2016-01-28T19:30:27","date_gmt":"2016-01-29T00:30:27","guid":{"rendered":"http:\/\/olduvai.ca\/?p=17056"},"modified":"2016-01-28T19:30:27","modified_gmt":"2016-01-29T00:30:27","slug":"silver-market-in-disarray-after-benchmark-price-fix-manipulation","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=17056","title":{"rendered":"Silver Market In Disarray After Benchmark Price Fix Manipulation"},"content":{"rendered":"

Silver Market In Disarray After Benchmark Price Fix Manipulation<\/a><\/h3>\n
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The LBMA Silver Price \u2013 the crucial daily benchmark used by producers and traders around the world to settle silver products and derivatives contracts \u2013 was set at $13.58 per ounce.<\/div>\n

At the time of the auction, which begins at 12 noon London time, the spot price was at $14.42 per ounce while the futures price on the CME was at $14.415, leaving a number of market participants extremely confused as to what has happened.<\/p>\n

\u201cUnfortunately, it is not [a mistake],\u201d Ole Hansen, head of commodity strategy for Saxo Bank, told FastMarkets. \u201cThis could be the end of the fix. It took 14 minutes to find a fix \u2013 they obviously found a fix way off of the market.\u201d<\/strong><\/p>\n

The difference between the two was nearly six percent but the benchmark cannot be changed,<\/strong>a person familiar with proceedings told FastMarkets.<\/p>\n

Another source also suggested that\u00a0the continued existence of the fix has been put in jeopardy by the huge discrepancy in today\u2019s price, adding that many producers \u2013 who still use the price as their daily reference \u2013 may have lost significant amounts of money if any contracts have been settled according to the fix.<\/strong><\/p>\n

\u201cA huge number of contracts are still settled on that price,\u201d another said.\u00a0\u201cThis will no doubt cause significant problems.\u201d<\/strong><\/p>\n

The matter is being investigated internally,<\/strong>FastMarkets understands, so CME has no official comment at this time.<\/p><\/blockquote>\n

This is how the market reacted to this clear manipulation…<\/p>\n

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As we have detailed previously,\u00a0the \u2018fix\u2019 or \u2018benchmark\u2019, as it is now known, is still the global benchmark reference price used by central banks, miners, refiners, jewellers and the surrounding financial industry to settle silver-based contracts.<\/strong><\/p>\n<\/div>\n

As Bulliondesk.com’s Ian Walker reports,<\/em><\/a>\u00a0the\u00a0silver market was thrown into disarray on Thursday after the LBMA Silver Price was set 84 cents below the spot and futures price this morning.<\/strong><\/div>\n

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…click on the above link to read the rest of the article…<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Silver Market In Disarray After Benchmark Price Fix Manipulation The LBMA Silver Price \u2013 the crucial daily benchmark used by producers and traders around the world to settle silver products and derivatives contracts \u2013 was set at $13.58 per ounce. At the time of the auction, which begins at 12 noon London time, the spot […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[12037,12038,124,7131,7577,647,683,703,12036,4318],"class_list":["post-17056","post","type-post","status-publish","format-standard","hentry","category-economics","tag-benchmark","tag-bulliondesk","tag-central-banks","tag-jpmorgan-chase","tag-otc","tag-precious-metals","tag-reuters","tag-saxo-bank","tag-silver-fix","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17056","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=17056"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17056\/revisions"}],"predecessor-version":[{"id":17057,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17056\/revisions\/17057"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=17056"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=17056"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=17056"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}