What is LBMA and LBMA Gold Price?

We have many clients and new investors who have asked us about what is LBMA and the LBMA Gold price published. In this short article, we will have a short knowledge sharing on these 2 frequently asked questions. LBMA is an association that sets standards and represents the global bullion market players. The members of LBMA are to ensure the highest standard of transparency and quality assurance for the precious metals market. LBMA has a responsible sourcing programme for precious metals, this is to protect the integrity of the global supply chain, combat money laundering, terrorist financing and human rights abuses globally. Inland Revenue Authority of Singapore (IRAS) takes into consideration the good delivery list from LBMA as the tax exemption criteria for investment precious metals in Singapore.

However, the overall association does not generally set or provide any metals live pricing per se, e.g. Brinks is a member of LBMA but the company doesn’t make live market prices. The LBMA Gold Price is a global benchmark price for unallocated Gold delivered in London. It is set twice daily at 10:30am (AM Price) and 15:30pm (PM Price) London time by an auction that is independently operated and administered by ICE Benchmark Administration (IBA). The price is set in US dollars per fine troy ounce (31.1035g). Since LBMA doesn’t set the gold price, UK bank holiday where no LBMA prices are published actually doesn’t affect trading of gold as prices are still generated by over counter transactions globally.

In Singapore, there is the Singapore Bullion Market Association (SBMA), which GoldSilver Central has been a member since 2016. The SBMA is a non-profit organisation representing 35 key stakeholders from the precious metals industry in Singapore including bullion banks, exchanges, refineries, bullion merchants and secured logistics support companies. Its mission is to develop the bullion market in Asia and aims to have widespread representation of the ASEAN precious metals industry.

Hope this short article provided you some insights into our trade and stay tuned for more knowledge sharing articles by our team!

Maya